Selling price $ 200 per unit
variable expenses $ 150 per unit
fixed expenses $ 1,000,000 per year
unit sales 25,000 per year

knowledge check 01: what is ralph corporation’s margin of safety in dollars?

a. $4 million
b. $5 million
c. $1 million
d. $2.2 million

knowledge check 02: what is ralph corporation’s margin of safety in percentage?

a. 20%
b. 100%
c. 80%
d. 50%

Gibson's bodywork does automotive collision work. an insurance agency has determined that the standard time to replace a fender is 2.5 hours (i.e., "standard output" 0.4

Navel county choppers, inc., is experiencing rapid growth. the company expects dividends to grow at 19 percent per year for the next 8 years before leveling off at 5 percent into perpetuity. the required return on the company’s stock is 10 percent. if the dividend per share just paid was $1.52, what is the stock price?

Which of the following statements is correct? a. two firms with identical sales and operating costs but with different amounts of debt and tax rates will have different operating incomes by definition. b. free cash flow (fcf) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. c. retained earnings as reported on the balance sheet represent cash and, therefore, are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers. d. if a firm is reporting its income in accordance with generally accepted accounting principles, then its net income as reported on the income statement should be equal to its free cash flow. e. after-tax operating income is calculated as ebit(1 - t) + depreciation.