The Break- Even Volume Is the Point at Which

question 4

Multiple Choice

The break- even volume is the point at which .

• A)a firm's profit goal is reached
• B)the production of one more unit will not increase profit
• C)the total revenue and total costs lines intersect
• D)demand equals supply
• E)the company can pay all of its long- term debt

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Definitions:

Par Value

A nominal or face value assigned to a share of stock by the company's charter, not necessarily reflecting its market value.

Yielding

The act of producing or generating an income or return from an investment over a specified period of time.

Constant Growth Model

A method to estimate the value of a stock by assuming a constant rate of dividend growth.

Required Return

The expected return that investors demand for investing in a security or a portfolio.