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Korolek [52]
3 years ago
6

Which one of the following characteristics relates to the cash break-even point for a given project?

Business
1 answer:
kap26 [50]3 years ago
6 0

Answer:

The project never pays back

Explanation:

The break even point in cash is a point where the minimum revenue amount of the firm arise from sales that are needed to generate the business by having the positive cash flows

hence,  the break even point in cash represents that the project will never pays back the invested amount

Therefore all the other options are wrong

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7 0
3 years ago
The higher the degree of financial leverage employed by a firm is, the: A. Higher is the number of outstanding shares of stock.
horsena [70]

Answer:

Option B,

The higher the degree of financial leverage employed by a firm, THE HIGHER THE PROBABILITY THAT THE FIRM WILL ENCOUNTER FINANCIAL DISTRESS.

Explanation:

The degree of financial leverage (DFL) is a leverage ratio that measures the sensitivity of a company's earnings per share to fluctuations in it's operating income, as a result of changes in its capital structure.

This ratio indicates that the higher the degree of financial leverage, the more volatile earnings will be.

The use of financial leverage varies greatly by industry and by the business sector. There are many industry sectors in which companies operate with a high degree of financial leverage (examples are retail stores, grocery store, banking institutions, airlines...). Unfortunately, the excessive use of financial leverage by many companies in this sector has played a major role in forcing a lot of them to file for bankruptcy.

Therefore, if the degree of financial leverage employed by a firm is high, then the probability that the firm will encounter financial distress will also be high.

3 0
3 years ago
Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase and 60% in the month following the purcha
garri49 [273]

Answer:

Explanation:

Cash budget for Pasadena Candle Inc.

Month                Purchased          Paid    

August               $40,000             $16,000

September        $36,000             $38,400

Calculations:

Month ending payment in September = 60 % x August purchases + 40 % x September purchases  = 0.60 x $ 40,000 + 0.40 x $ 36,000

 = $ 24,000 + $ 14,400 = $ 38,400

5 0
3 years ago
This table can be used to organize Gigi’s credit card balances and payments over 6 months. The annual percentage rate on the cre
Alchen [17]

Answer:

-16.34

Explanation:

  • Disclaimer: I am not sure, sorry. It might be -16.34, 16.34, or 15.75. Once again, sorry.
8 0
2 years ago
Read 2 more answers
Which events could cause the change in demand shown on this graph?<br><br> Check all that apply.
Kazeer [188]

Answer:

Factors that can shift the demand curve for goods and services, causing a different quantity to be demanded at any given price, include changes in tastes, population, income, prices of substitute or complement goods, and expectations about future conditions and prices.

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