XYZ Co. is a manufacturer of a single product which it totally sells in the domestic market. The sales price of the product is $900. The unit variable cost is $300.

Contribution Margin = Sales Price of the Product - Unit Variable Cost = 900 - 300 = 600.

The correct answer is C. 

The shareholder value based on the value of expected future cash flows adjusted for time and risk is defined as the INTRINSIC VALUE , which is in fact the present value of the future cash flows that the company expects to generate.

PV=FV/(1+r)

20.000/(1+0.1)=18.181

Agency costs of debt are arising from conflicts between shareholders and creditors. It increases with an increase in debt usage since shareholders benefit from the excess debt while creditors suffer. Shareholders benefit because debt often lead managers to work harder to protect their reputation, to prevent bankruptcy, and to protect their control on the company decisions. Creditors suffer because their risk level is increased with the excess debt.

Production value tells how much effort is required in order to produce goods and services.

Break-even point= 300.000/(20-5)=20.000

Break-even point=5,250,000/(250-100)=37,500 units

The minimum capital requirement is 10.000 TL for a Limited Liability Company. The minimum capital requirement for a Joint Stock Company is 50.000 TL. If capital system of the company is registered capital, then the minimum registered capital requirement is 100.000 TL.

Degree of Operating Leverage(DOL)= %? EBIT / %? Sales ; Hence given DOL is 3 , a 1% increase in sales will lead to a 3 % increase in EBIT. 

In vertical (or common size analysis), the items in the financial statements are expressed as a percentage of total assets or sales. The main advantage of vertical analysis is that such an analysis is not much affected by price fluctuations and that it lets industry-wide comparisons.

Vertical equity agency costs stem from owners delegating managers (agents) to maximize their benefits in return of a financial return (compensation). Agency theory assumes
this relationship does not work properly because personal interests of managers sometimes do not allign with interests of shareholders. 

• Ratios are representations of average conditions that existed in the past, and are influenced by the selection of accounting methods (e.g., weighted average vs. FIFO cost flow; accelerated vs. straight line depreciation);

• Since financial statements are based on historical data, they do not reflect price level effects and real economic values;

• Computation of ratios are not standardized, and thus are influenced by data selection choices;

• Changes in many ratios are strongly associated with each other; e.g., changes in the current ratio and quick ratio between two different times are often in the same direction, and usually proportional. Therefore, it is not necessary to calculate all ratios, and interrelationships between/ among the ratios should be investigated;

• When ratios for the same company are compared over a period of time, care must betaken to analyzethe changes in operating conditions (e.g., changes in economic conditions, changes in product lines or geographic markets, changes in prices, levels of inflation, etc.); and

• When a specific firm is compared with similar firms, differences between/among the firms should be recognized (e.g., accounting policies, type of financing available, operating characteristics such as product lines, size and geographical location).

• The last, but the most important, consideration for the analysis is to obtain audited financial statements. Although unaudited statements might provide valuable information about a company, conclusions reached with this information are questionable, because its use brings up fair representation issues. Financial statement analysis is a multi-faceted issue. An analyst should consider all available techniques and ratios in order to produce useful reports to investors.

Horizontal analysis is also known as trend analysis. This analysis performs better for longterm analysis within the same company. 

pv=35,000/(1+0,15)=30,434.78

$15,000=$10,000 *(1,08^n)

n= log1,5/log !,08

n=5,27

Security is a kind of negotiable paper, showing claims on future cash flows of the issuer of the security.

Free Cash Flow = Cash Provided by Operations – Capital Expenditures – Cash Dividends

Gross profit margin=(revenues-cost of goods sold)/revenues

So for 2014;

Gross profit margin=(139400-55400)/139400=0.603=60.3%

S=$50,000 * (1,01^12)*(1,035^4)*(1,08^2)= $75,411

Because 

P/E = Market Price per share / Earnings per share ,

and ROE =NI / Shareholders' Equity = NI per share / SHE per share = Earnings per share / Book Value per share, 

P/B= Market Price per share /Book Value per share = P/E * ROE ; 

Hence,  P/B = 12*0,13 =1,56