CONSTRUCTION FINANCE ASSIGNMENT #3
1. Many of you will some day own your own business. One rapidly growing
opportunity is no-frills workout centers. Such centers attract customers who want to take
advantage of state-of-the-art fitness equipment but do not
CON589 Construction Finance
1. Assume a $40,000 investment and the following cash flows for two alternatives.
Which of the alternatives would yo
by one person.
for debts of the
Owned by two
ASSIGNMENT #2 CON589 CONSTRUCTION FINANCE
Discuss the definitions and characteristics of:
Shock Electronics sells portable heaters for $35 per unit, and the variable cost to produce
them is $22. Mr. Amps estima
Discuss the need for comparative analysis.
Identify the tools of financial statement analysis.
Explain and apply horizontal analysis.
Describe and apply verti
Degree of Operating
Operating leverage: by using fixed
operating costs, a small change in
sales revenue is magnified into a
larger change in operating income.
This multiplier effect is called
the degree of operating leverage.
Degree of Op