. If two companies have identical unit sales volume and operating risk, they are most likely to also have identical: sales risk. business risk. sensitivity of operating earnings to changes in the number of units produced and sold. Can someone briefly explain this question
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Juan Alavanca is evaluating the risk of two companies in the machinery industry: The Gearing Company and Hebelkraft, Inc. Alavanca used the latest fiscal year’s financial statements and interviews with managers of the respective companies to gather the following ...
Myundia Motors now sells 1 million units at ¥3,529 per unit. Fixed operating costs are ¥1,290 million and variable operating costs are ¥1,500 per unit. If the company pays ¥410 million in interest, the levels of sales at the operating ...
Boris Duarte, CFA, covers initial public offerings for Zellweger Analytics, an independent research firm specializing in global small-cap equities. He has been asked to evaluate the upcoming new issue of TagOn, a US-based business intelligence ...
In question 22, i have a doubt regarding the year 5 in which CF stablise at 5,500,000. if i apply the perpetuty formaula at P5 then it will provide me P4 value. but the answer has taken another assumption
