Details of this Paper

What percentage of the contribution margin is profit on units sold




11. What percentage of the contribution margin is profit on units sold in excess of the breakeven point?;A) It's 50% to the contribution margin ratio.;B) It's equal to the variable cost ratio.;C) It's equal of the gross profit ratio.;D) It's 100%.;12. An example of a cost that is likely to have a variable behavior pattern is;A) sales force salaries.;B) depreciation of production equipment.;C) salaries of production supervisors.;D) direct labor costs.;13. What is the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average accounts payable, a receivables period of 40 days, and an annual cost of goods sold of $18 million?;A) 14.59 days;B) 46.25 days;C) 70.41 days;D) 136.25 days;14. Assume the total expense for your current year in college equals $20,000. Approximately how much would your parents have needed to invest 21 years ago in an account paying 8% compounded annually to cover this amount?;A) $ 952;B) $1,600;C) $1,728;D) $3,973;15. What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19?;A) 5.00%;B) 5.33%;C) 6.46%;D) 7.00%;16. What is the required return for a stock that has a 5% constant growth rate, a price of $25, an expected dividend of $2, and a P/E ratio of 10?;A) 5%;B) 10%;C) 13%;D) 22%;17. An increase in a firm's financial leverage will;A) increase the variability in earnings per share.;B) reduce the operating risk of the firm.;C) increase the value of the firm in a non-MM world.;D) increase the WACC.;18. A firm has an expected return on equity of 16% and an after-tax cost of debt of 8%. What debt-equity ratio should be used in order to keep the WACC at 12%?;A).50;B).75;C) 1.00;D) 1.50;19. What is the most likely prediction after a firm reduces its regular dividend payment?;A) Earnings are expected to decline.;B) Investment is expected to increase.;C) Retained earnings are expected to decrease.;D) Share price is expected to increase.;20. Which of the following would not be included among the costs of carrying inventory?;A) Obsolescence;B) Opportunity cost of capital;C) Raw material cost;D) Risk of pilferage


Paper#26444 | Written in 18-Jul-2015

Price : $37