when contribution is negative, then how to calculate PV ratio?
Answer Posted / gulzar singh
lets understand with this exemple
Sales = 10, Variable cost= 3, Fixed cost = 3,
Sales = 10
less Variabled cost = 3
C0ntribution (10-3) = 7
less fixed cost = 3
profit = 4
Contriburion only negetive when Variable cost is more then
sales.
Is This Answer Correct ? | 10 Yes | 3 No |
Post New Answer View All Answers
Occasionally it is said that issuing convertible bonds is better than issuing stock when the firms shares are undervalued. Suppose that the financial manager of Decent Furniture Company does in fact have inside information indicating that the decent stock price is too low. Decent furniture earnings will in fact be higher than investor’s expectations. Suppose further that the inside information cannot be released without giving away a valuable competitive secret. Clearly, selling shares at the present low price would harm Decent’s existing shareholders. Will they also lose if convertible bonds are issued? If they do lose in this case, is the loss more or less than it would be if common stock is issued? Now suppose that investors forecast earnings accurately, but still under value the stock because they overestimate Decent’s actual business risk. Does this change your answer to the questions posed in the preceding paragraph? Explain.
i have cleared c.s inter. for the purpose of training i want to know the companies who are providing training of c.s in punjab state.please help me in this.
I want to validate Customer credit payment with customer invoice, When billing time, the system check the customer credit payment, if customer credit is lesser than customer bill, system should not allow the billing further process. Can I configure in sap
STATE THE DIFFERENCE BETWEEN BANKING FIS AND NON BANKING FIS
Does provisions need to be subtracted from reserves if net worth is calculated on the basis of share capital based method
How to analyse the day to day sensex Points or Forex Values?
Information regarding shop & establishment registration of propiertor ship & require document for this
I am Simrat Kaur. I am persuing graduation from P.U. I have an experience of 14 months as a CSA. But i hav an experience letter of 6 months.But I can show my joinin letter of the other job. I hav knowledge of basics of computer & internet. Actually, m findin job in chandigarh. I am findin the right opportunity. so, Can u plz help me in findin the right job?? Can u plz tel me abt where interviews r goin on?
hat is the meaning of the capital ique,and hat is capital,and ahat is ique
why your choseing bank of america
STATE & EXPLAIN THE IMPACT OF GLOBAL FINANCIAL CRIS ON CEMENT SECTOR IN INDIA:
In the case of Internal Reconstruction of company Accrued Int. On debenture / Outstanding int. On debenture transfer or not in capital reduction a/c . Explain
Does any one attented HSBC audit compliance test? Please let me know asap. suraj
what is meant by search report of the company n why is it prepared?
sir i want aao lic exam model question paper