10 finance question (benkart’s tire store has fixed costs of $220,000)

1. Assume that the tax on dividends and the tax on capital gains is the same. All else equal, what would a prudent investor prefer? (Points : 1)

Don't use plagiarized sources. Get Your Custom Essay on
10 finance question (benkart’s tire store has fixed costs of $220,000)
Just from $13/Page
Order Essay

a.       The prudent investor would be indifferent between receiving dividends or capital gains.

b.      The prudent investor would prefer dividendsa dollar today is always worth more than a dollar to be received in the future.

c.       The prudent investor would prefer capital gainsthe capital gain tax liability can be deferred until gains are realized.

d.      More information is needed.

 

2. Benkart’s Tire Store has fixed costs of $220,000. Tires sell for $95 each and have a unit variable cost of $45. What is Benkart’s break-even point in units? (Points : 1)

a.       4,000

b.      4,400

c.       5,200

d.      5,500

 

3. A high degree of variability in a firm’s earnings before interest and taxes refers to (Points : 1)

a.       business risk.

b.      financial risk.

c.       financial leverage.

d.      operating leverage.

 

4. Which of the following is the most valid reason to split a stock that has a market price of $110 per share? (Points : 1)

a.       Conserve cash.

b.      Reduce the market price to a more popular trading range.

c.       Obtain additional capital.

d.      Increase investor’s net worth.

 

5. Dividend changes may be used by management as a credible communication tool to signal investors about future earnings under which of the following dividend policy theories? (Points : 1)

a.       the clientele effect

b.      the residual dividend theory

c.       the information effect

d.      the expectations theory

 

6. Based on the data contained in Table A, what is the break-even point in sales dollars?

 

TABLE A

Average selling price per unit $18.00

Variable cost per unit $13.00

Units sold 400,000

Fixed costs $650,000

Interest expense $ 50,000 (Points : 1)

a.       $2,340,000

b.      $1,850,000

c.       $1,775,500

d.      $700,000

 

 

 

7. Amish Enterprises makes wooden play sets. The company pays annual rent of $400,000 per year and pays administrative salaries totaling $150,000 per year. Each play set requires $400 of wood, ten hours of labor at $70 per hour, and variable overhead costs of $100. Fixed advertising expenses equal $100,000 per year. Each play set sells for $3,200. What is Amish Enterprises’ break-even output level? (Points : 1)

a.       340 play sets

b.      325 play sets

c.       297 play sets

d.      258 play sets

 

8. The break-even point is equal to (Points : 1)

a.       fixed costs divided by (sales price per unit — variable cost per unit).

b.      fixed costs divided by unit variable costs.

c.       fixed costs divided by selling price per unit.

d.      (sales price per unit — variable cost per unit) times the fixed costs.

 

9. The break-even model enables the manager of the firm to (Points : 1)

a.       calculate the minimum price of common stock for certain situations.

b.      set appropriate equilibrium thresholds.

c.       determine the quantity of output that must be sold to cover all operating costs.

d.      determine the optimal amount of debt financing to use.

 

10. The final approval of a dividend payment comes from (Points : 1)

a.       the controller.

b.      the president of the company.

c.       the board of directors.

d.      It is a joint decision requiring approval from all of the above.

Place Order
Grab 16% Discount On This Paper
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, MyEssay.Help has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At MyEssay.help, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@myessay.help.

Try it now!

Grab 16% Discount On This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

MyEssay.help has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

Essays

Essay Writing Services

At MyEssay.help, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.

Admissions

Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.

Editing

Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.

Coursework

Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.

                                                                                     Place Order macbook tamir - mersin escort - casino-masino.com - bahis