The margin of safety is the cushion amount that the actual or budgeted sales can drop by, still enabling the business to break even. It is the difference between actual/budgeted sales and the break-even sales. The margin of safety can be stated in units, dollars or in a ratio form.

Degree of Financial Leverage(DFL) = %? EPS / %? EBIT ; Hence given DFL is 2.5 , a 1% increase in EBIT will lead to a 2.5 % increase in EPS. 

Main stakeholders are owners, employees, suppliers, lenders, customers, and the community.

Business financial management covers subjects related to decision-makings of company managers, trying to maximise shareholder wealth at given external circumstances at local, regional, international, and global levels of geographical dispersion. Therefore the correct answer is A. Other options are not related.

dept to equity ratio=total liabilities/owners equity

so for 2015; dept to equity=20400/48000=0.425=0.43

EAR=(1+(0.12/4)^4)-1=12.55%

Quick ratio provides a severe test of immediate liquidity, revealing a company’s ability to meet sudden demands upon liquid current assets. Care must be taken when determining Quick Assets in terms of the assets to be included in the numerator of the equation.

Institutional elements, economic system, business system, financial system are the elements that an environment of a company contains. Other options are not related, therefore D is the correct answer.

The contribution margin shows the amount of income generated to cover up the total fixed costs and earn the targeted profit. The correct answer is B. 

Solvency ratios are Long-term Debt Ratio,Debt to Equity, Debt Ratio, Book Value Per Share of Common Stock and Times Financing Expenses Earned. Therefore, the correct answer is C. 

Turkish Commercial Code allows the establishment of a singleshareholder Limited Liability Company. The number of shareholders ranges between one (single-shareholder) and 50.

The degree of total leverage shows the combined effects of operating leverage and financial leverage on a company’s earnings. Hence, DTL measures the sensitivity in the EPS relative to a percentage variation in the sales revenue. Operating leverage is an indicator of business risk and financial leverage is a measure of financial risk. Therefore, total leverage indicates the combined effects of the cost structure and capital structure of a firm on its net profit. Degree of total leverage is the product of DOL and DFL.

The current ratio is computed as follows: Current Ratio = Current Assets / Current Liabilities

Asset turnover ratio measures how effectively the company makes use of its assets. Thus,if a firm has a higher asset turnover ratio than the industry average, this implies the firm is utilizing assets more efficiently than other firms in the industry.

Total assets are TL 700,000 (TL 250,000+TL 450,000) as we add current assests and fixed assets. Since total assets equal total liabilites and owners' equity, we subtract total lianbilities from total assets to calculate owners' equity, which is TL 200,000 (TL 700,000-TL 500,000)

Financial intermediary is an institution in a financial system that acts as a middleman between borrowers and lenders. A is the correct answer. Other options are not related to the definition.

The greater the perceived risk, the greaster the return required by the investors, since people need to be compensated for the additional risks they undertake.