Profit Maximization - The Zinger Company

Related BrainMass Solutions

• The Zinger Company: Total Profit at Optimal Level

  78524 The Zinger Company: Total Profit at Optimal Level The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a particular model is given by the following relationship: Q = 400 - .5P where P is price.

• The Zinger Company: Total Cost, Marginal Revenue and Price

  78519 The Zinger Company: Total Cost, Marginal Revenue and Price Zinger Company makes and sells a sewing machine line. manufactures and sells a line of sewing machines.

• Marignal revenue function for The Zinger company

  What is the marginal revenue function for Zinger Company?

• Zinger Corporation

  Zinger Corp. has bonds outstanding at 10%, but its investment banker has informed the company that interest rates for bonds of equal risk are currently yielding 9%. Zinger's tax rate is 46%.

• Cost of Capital

  The firm's optimum capital structure has been 45% debt, 10% preferred stick and 45% equity. The company will try to maintain this capital structure in financing this expansion plan.

• industrial type sewing machines

  Zinger Corp. has bonds outstanding at 10%, but its investment banker has informed the company that interest rates for bonds of equal risk are currently yielding 9%. Zinger's tax rate is 46%.

• Economics : Calculaton of price per unit

  78523 The Zinger Company The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a particular model is given by the following relationship: Q = 400 - .5P where P is price.

• Profit maximization, maximization of shareholder wealth?

  What is meant by the goal of maximization of shareholder wealth? Profit maximization by itself is not appropriate because the goal could overtake other aspects of the company which are important.

• traded in the secondary market

  If the company's performance is good then the stock price will increase. Company is concerned as the stock price will determine the value of the company. Profit maximization should not be the decision criterion of the management.