Answer:
Degree of operating leverage = 7.8
Explanation:
given data
sales = 2,080 units
per unit price = $50
Variable expenses = 25%
total fixed expenses = $68,000
solution
we get here Degree of operating leverage that is express as
Degree of operating leverage = Sales - variable cost ÷ (sales - variable cost - fixed cost) .......................1
here
Sales = 2080 × 50 = 104000
and
Variable cost = 104000 × 25% = 26000
so now put value in equation 1 we get
Degree of operating leverage = 
Degree of operating leverage = 7.8
Answer:
c.
Explanation:
Based on the information provided within the question it can be said that the exception of the answers provided are seasonal cash requirements. This refers to the amount of cash you or the company needs to pay for unique expenses during a specific season. Which is not a factor when deciding what should be invested in marketable securities.
Answer: the government giving tax breaks to companies locating in poor geographic areas.
Explanation:
The searching companies can work for equity or debt loans in order to raise money on global capital markets. The debt of a foreign institution, lender, and other debt suppliers is also an option to raise money in the capital market. As equity loans include the sale of equity to investors, the issue of bonds is part of debt loans. Capital costs are usually less than in the domestic market and the company can even borrow money from the bank. And enterprises need to be very careful to take into account the risk of adverse exchange rates because, if the peso is to be depreciated, they should be aware of the cost of acquiring the currency needed to repay a foreign exchange loan.
Moreover, foreign equity, floating foreign or Eurobonds offerings, or borrowing on the Euro currency markets may be considered by the Mexican firm. The euro currency market would then certainly provide the company with additional funding at a lower rate domestically. And if the peso decreases in the next 2 years, the company has to repay the credit in a different currency unless the company can use the future market. The value of euro currency loans would definitely be reduced.
We can recognize that the use of both foreign and euro bonds has the same disadvantages as the bonds have to be repaid in an anti-peso currency. The international bond market has important points that are worth considering, given the fewer regulations, disclosure requirements, and fiscal implications if the currency risk can be properly analyzed and minimized. Since the foreign equity market requires no payment to its stockholders and also has the greatest independence from its actions, it is perhaps the most attractive for the company. So, if the hesitations are to be overcome, investors will likely have loan strong growth prospects.
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Answer:
True
Explanation:
statement of cash flows can be regarded as financial statement which gives analysis of how cash as well as cash equivalent is affected by any changes in balance sheet accounts.
The indirect method of statement of cash flows begins with loss or the net income as well as the substraction of values from non cash revenue which result in case flow as a result of operating activities.
