What is the break even level for this stock. The second option is 50,000 shares of stock plus some debt.
What is the break even level for this stock. Our online tool makes break-even analysis simple and easy. Send 1) Solver (vol). Jun 29, 2024 · Based on the information provided in the Bloomberg Terminal screenshot, the break-even level for the AAPL US Equity option is $364. The all equity capital structure would consist of 40,000 shares of stock. Eaton comes up with a new plan to cut fixed costs to $200,000. May 1, 2023 · What is Break Even Analysis? The Break Even Point is the point at which sales volume total revenues and total expenses are equal, it is also said as the point of zero profit or zero loss. May 3, 2024 · The breakeven price is the level the underlying asset must reach to cover the cost of the premium paid for the option. Dec 21, 2024 · The break-even point is the stock price level at which an investor neither makes a profit nor incurs a loss. What is the break-even level of EBIT between the two The all-equity capital structure would consist of 75,000 shares of stock. 08 $60. 0 3, or $ 3 8 5 Jul 16, 2024 · Components of break-even analysis are fixed costs, variable costs, revenue, contribution margin, and break-even point (BEP). 08$76. Decipher related costs & strategies in different ways for informed decisions! Jan 16, 2024 · The final component of break-even analysis, the break-even point, is the level of sales where total revenue equals total costs. Veesion explains its meaning, usage, and calculation. It is considering issuing $130,000 of debt at an interest rate of 6. The break-even price is defined as the level of price or amount that the seller of the business should quote that enables him to recover the costs of the business operations. Learn how to calculate and reduce your break-even point. For this to be true. 5 percent. ) d-3. Oct 23, 2024 · The break-even price is the amount at which a financial asset or investment generates neither a profit nor a loss. Aug 18, 2023 · Today's Breakout Stocks A breakout stock is a company that is trading outside a defined support or resistance level with increased volume. The coupon rate on the debt is 72 percent. The second option is 28,000 shares of stock plus debt. The coupon rate on the debt is 7. It is considering issuing $148,000 of debt at an interest rate of 7. Chokhani Textiles is debating between a levered and an unlevered capital structure. May 1, 2024 · Break-Even Point (BEP) is the inflection point at which a company starts to generate a profit, as its revenue is equal to its total costs. What is the break-even level of earnings before interest and taxes between these two capital structure options? A. 000 shares of stock plus $250 000 of debe with an interest rate of 7. 40 Northeast Lobster currently has 19,200 shares of stock outstanding. Study with Quizlet and memorize flashcards containing terms like Katlin Markets is debating between a levered and an unlevered capital structure. It is considering issuing $142,000 of debt at an interest rate of 6. The point where the initial cost and the market price are equal in investment is called the Sep 24, 2021 · Read about how financial leverage increases the break-even point for a corporation, which is the point at which earnings become real profits. What is the break-even level of earnings before interest and taxes between Question: 12 Northeast Lobster currently has 18,700 shares of stock outstanding. The new CFO is considering issuing $65,000 of debt and using the proceeds to retire 750 shares of stock. 97 $71. The break-even point is a crucial financial milestone that signifies the point at which a company's total revenues equal its total expenses, resulting in neither profit nor loss. 25$91. Ignoring taxes, the break-even level of earnings before interest and taxes between these two options is 52,000. Jul 17, 2025 · Understand the break-even point in options trading with clear formulas and examples. What is the break-even level of earnings before interest and taxes between these two capital structure options? Feb 15, 2023 · Every unit sold after the break-even unit will result in a profit for the company. 4 percent. Problem 16-6 Break-Even EBIT and Leverage [LO1, 2] Dickson Corporation is comparing two different capital structures. Learn to calculate and analyze with ease on moomoo trading platform. The debt and equity option would consist of 13,000 shares of stock plus $270,000 of debt with an interest rate of 7 percent. How much money is the firm considering borrowing if the A firm is considering two different capital Apr 19, 2023 · The break-even point can be shown with the help of the following graph: In the above graph, we can see that E is the break-even point as Total Revenue at this point is equal to the Total Cost. Aug 27, 2020 · Break-Even Point Definition In accounting, economics, and business, the break-even point is the point at which cost equals revenue (indicating that there is neither profit nor loss). For this to be true, what is the current stock price? Ignore taxes. 80 O $82. The break-even point is the price that a stock mu Dec 16, 2024 · The breakeven point is a key profitability KPI, calculated before launching a project and during major expenditures. The results are sorted by the percentage difference between the stocks' current share price and its moving average. What is the break-even level of EBIT between the two The break-even level of EBIT between these two capital structure options is $73,000. The second structure consists of 17,000 shares of stock and $110,000 of debt. Question: OVL what is the break even level for this stock? $520, $364. The revenues could be stated in dollars (or other currencies), in units, hours of services provided, etc. $70. The first option consists of 25,000 shares of stock. BEP is crucial in business to make informed decisions about pricing, production, and profitability. With the help of break-even analysis, a firm can decide its volume of production for the desired amount of profit. Break-even is the point at which revenue and total costs are the same, meaning the business is making neither a profit nor a loss. 8 percent. It is considering issuing $166,000 of debt at an interest rate of 7. The sales price will The all equity capital structure would consist of 32,000 shares of stock. 65 O $71. A firm is considering a capital restructuring. There are three key value points for option trades: break even, in the money (ITM), and out of the money (OTM). The one structure consists of all equity with 30,000 shares of stock. This is so, because break-even analysis is the most widely known form of cost-volume-profit analysis. Break-even calculator shows you how much revenue your business needs to make in order to cover all costs. 1. Business Finance Finance questions and answers Northeast Lobster currently has 18,600 shares of stock outstanding. Understanding this concept is essential for businesses and investors, especially when trading options. This article explores the break-even price definition, calculation methods, practical examples, and how it applies in different scenarios like stock trading and options. $18,500 B. Question: Northeast Lobster currently has 19,000 shares of stock outstanding. Break Even Analysis is often used in different contexts. Nov 20, 2024 · Definition of break-even analysis and break-even point (BEP). Northeast Lobster currently has 19,300 shares of stock outstanding. The second option consists of 18,750 shares of stock plus $120,000 of debt at an interest rate of 7. The break-even level of EBIT between these two capital structure options is $133,000. Northeast Lobster currently has 19,900 shares of stock outstanding. The concept of “breaking even” has multiple applications, so the definition of The break-even level of EBIT between these two capital structure options is $121,000. Break-even analysis in economics, financial modeling, and cost accounting refers to the point in which total cost and total revenue are equal. 14 $68. 08 O $78. 03. The new structure would include $250,000 of debt with a coupon rate (interest rate) of 10 percent. Click on the Bloomberg Terminal screen to examine the OVL function. The all-equity capital structure would consist of 75,000 shares of stock. It is considering issuing $106,000 of debt at an interest rate of 6. Step-by-step calculation on applying break-even analysis effectively in business and investing. 76 $64. $21,000 C. In the light of accounting, break-even analysis is the level at which production revenue equals production cost. This page lists stocks that are currently trading above or below their 50-day, 100-day, or 200-day moving averages. It is the output level at which total revenue and total cost of production are equal in accounting terms. It represents the equilibrium point where total revenue equals total costs. It is considering issuing $178,000 of debt at an interest rate of 7. A stock’s price must Rise above the breakeven for call option The break-even level of EBIT between these two capital structure options is $105,000. The all-equity capital atructure would consist of 60. It is considering issuing $112,000 of debt at an interest rate of 6. Mar 19, 2025 · In accounting and business, the breakeven point (BEP) is the production level at which total revenues equal total expenses. What is the break-even level of earnings before interest and taxes between these two capital structure options? Ernst Electrical has 7,500 shares of stock outstanding and no debt. Dec 25, 2024 · Another variation on the formula is to focus instead on the number of units that must be sold in order to break even, rather than the sales level in dollars. Multiple Cholce $92. 1 percent. In a Assuming that the corporate tax rate is 22 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? (Do not round Intermedlate calculatlons. 714 points Multiple Choice $6993 O 373 26 O $75 59 366. Plan I would result in 31,000 shares of stock and $93,000 in debt. Apr 17, 2023 · The different types of breakeven points include unit breakeven point (the number of units needed to sell to break even), revenue breakeven point (the amount of revenue needed to generate to break even), and time breakeven point (the amount of time it will take for your business to break even). It is considering issuing $184,000 of debt at an interest rate of 7. Plan I would result in 900 shares of stock and \$65,700 in debt. 03 $520 us Module: Using the Language of the Options Market < PREV tions: The Rule Ul a Juul Fullscreen Bach Settings Views Products Actions Asset Option Valuation Equity/IR 10 Send 10 Ticket 19 Trade Load Solver (Vol) 14 Save Volatility The all equity capital structure would consist of 40,000 shares of stock. Plan I would result in 12,700 shares of stock and $100,050 in debt. How To Calculate Break Even Price? Calculating the break-even price is a vital aspect of business decision-making. There are 2 steps to solve this one. The break-even level of output informs a business of the amount Definition of Break-even Point In accounting, the break-even point refers to the revenues necessary to cover a company’s total amount of fixed and variable expenses during a specified period of time. The coupon rate on the debt is 6. Jan 29, 2025 · Know about what break-even denotes in trading, how to use and calculate it, and also secure detailed information regarding how to move stop loss when the position goes into profit while protecting the growing profits in our exclusive guide. The second option is 28,000 shares of stock plus some debt. 23 O $75. What is the break-even "A firm is considering a capital restructuring. At the break-even level, the: and more. In this case, first compute the EBIT for each plan, and then use that information to determine the EPS for each plan ⋅ Then, compare the break − even levels of EBIT for each plan to an all − equity plan and determine the level of EBIT ⋅ Finally, compute the firm A ′ s EPS and EBIT break − even levels using a 25 % corporate tax rate ⋅ EPS is a financial measure that is used to An excellent way to improve your trading discipline is to track your break even point in a trading journal. The new CFO is considering issuing $80,000 of debt and using the proceeds to retire 1,500 shares of stock. How much money is the firm considering borrowing if the interest rate is 9 percent? Jun 25, 2025 · Break-even price is the price for which an asset must be sold to cover the costs of acquiring and owning it. The term “break-even analysis” is used in two senses—narrow sense and broad sense. The break-even level of EBIT between these two capital structure options is $129,000. The all-equity capital structure would consist of 60,000 shares of stock. At this point in time, all expenses have been accounted for, so the product, investment, or business begins to generate profit. Question: Ernst Electrical has 9,000 shares of stock outstanding and no debt. Ignoring taxes, Learn the essentials and meaning of breaking even in accounting with easy samples. 56 $75. The break-even level of EBIT between these two capital structure options is $85,000. is comparing two different capital structures. 03, or $385 OVL what is the break even level for this stock? $ 5 2 0, $ 3 6 4. If you are new to trading, you may have come across the term "Break-Even Point" when talking about options. However, more labor will now be required, which will increase variable costs per unit to $39. Break-even analysis is a measurement system that calculates the break even point by comparing the amount of revenues or units that must be sold to cover fixed and variable costs associated with making the sales. Question: Catacombs Inc currently has 19,800 shares outstanding. The new structure would include $100,000 of debt with a coupon rate (interest rate) of 10 percent. Jun 8, 2023 · What is the break-even point and how do you calculate it? Why is it important for your business? Read on to learn about what this is and how it works. The break-even point is the number of units that you must sell in order to make a profit of zero. The interest rate on the debt is 10 percent. The debt and equity option would consist of 45,000 shares of stock plus $250,000 of debt with an interest rate of 7. Catapult Movers has determined that $98,000 is the break-even level of earnings before interest and taxes for the two capital structures it is considering. It shows you by how much the stock needs to move to recover the trading costs and establishes a baseline for profitability. Multiple Choice$84. 04 583. Ernst Electrical has 9,000 shares of stock outstanding and no debt. 99 $73. The total fixed costs are $50k, and the contribution margin ($) is the difference between the selling price per unit and the variable cost per unit. The basic calculation of the break-even point in sales dollars for a year is: fixed . Once you pass this point, any additional sales start generating profit. It is considering issuing $154,000 of debt at an interest rate of 7. Plan II would result in 9,800 shares of stock and $226,200 in debt. 04 $63. The stock market is another industry in which Break-even Point can be frequently seen. Study with Quizlet and memorize flashcards containing terms like Which one of these statements is correct?, The value of a firm is maximized when the:, You have computed the break-even point between a levered and an unlevered capital structure. Recording the entry price, total costs, and break even level for each trade helps you identify patterns in your trading behaviour. This allows you to see how often your trades hit break even but don't reach profit. 13 Northeast Lobster currently has 18,400 shares of stock outstanding. The first option is an all-equity firm with22,500 shares of stock. The debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. The existing firm is unlevered and has 20,000 shares of stock outstanding at a market price of $25 per share. 42$88. Jun 17, 2025 · Learn about calculating break-even for AQA A Level Business, including contribution, margin of safety and changes in fixed and variable costs and selling price The first option is an all-equity firm with 75,000 shares of stock. Ignore taxes. Then, click the "Calculate" button to Jan 16, 2025 · Learn how to calculate breakeven points in options trading with this step-by-step guide, helping you make informed and profitable trades. For that investment, the break-even is the point at which the original cost equates to the market price. The one structure consists of all equity with 20,000 shares of stock. What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes. In simple words, the formula helps us calculate the price at which the total cost will equal the total revenue of the business operation. Northeast Lobster currently has 19,600 shares of stock outstanding. The debt and equity option would consist of 40,000 shares of stock plus $320,000 of debt with an interest rate of 6. Ignoring taxes, the break-even level of earnings before interest and taxes between these two options is $52,000. Meaning of Break-Even Analysis: The study of cost-volume profit analysis is often referred to as ‘break-even analysis’ and the two terms are used interchangeably by many. Apr 20, 2025 · Break-even sales is the amount of revenue you need to generate to cover your total costs —without making a profit or a loss. The debt and equity option would consist of 16,000 shares of stock plus $260,000 of debt with an interest rate of 9 percent. It is considering issuing $118,000 of debt at an interest rate of 6. 2 percent. Ignoring taxes, the break-even level of earnings before interest and taxes between these two options is $95,000. It equals the company’s interest expense plus dividends paid to preferred stock-holders and associated taxes. tt is considering issuing $178,000 of debt at an interest rate of 7. 32 Question 24 Traindriver Engineering has determined that $74,000 is the break-even level of eamings before interest and taxes for the two capital structures it is considering. a. 03 Asset - Actions Products Views Settings Option Valuation Equity/IR kel. Break Even Stock Price Calculator Use this tool to find the minimum stock price you need to sell at to cover your total investment costs, including commissions and taxes. Northeast Lobster currently has 19,800 shares of stock outstanding. 91$80. Break-even points often carry technical significance. It helps organizations determine the point at which their total revenue equals their total costs, resulting in neither profit nor loss. May 16, 2024 · Posted by Bruce Wright Published: May 16, 2024 Updated: Jul 8, 2025 How To Calculate a Break-even Point Using a Formula There are several applications for a breakeven point in finance and business. What is the break-even level for this stock? $520 $385 $364. This formula is: Total fixed expenses ÷ Average contribution margin per unit Advantages of Breakeven Analysis There are several advantages of using a breakeven analysis. Break Even Analysis Study with Quizlet and memorize flashcards containing terms like If sales units exceeds the break-even point in units, the firm will experience, Normally, permanent current assets should be financed by, Retail companies like Target and Macy's are more likely to have and more. Mar 8, 2021 · Break-even analysis is a way of determining the sales volume at which a business can recoup the cost of offering a product or service. What is the break-even level for this stock? $385 $364. 24 388. The existing firm is unlevered and has 100,000 shares of stock outstanding at a market price of $50 per share. 64 O O $74 The break-even level of EBIT between these two capital structure options is $113,000. 64 $10062 596. All of the money raised from the debt issue would be used to repurchase stock. Also Read: Break Even Point The formula for accounting breakeven is = (Total Fixed cost/price per unit) – variable cost. The new CFO is considering issuing $75,000 of debt and using the proceeds to retire 2,500 shares of stock. Can the breakeven point change over the life of an option? Yes, the breakeven point can shift due to factors like time decay and changes in the option’s premium as market conditions fluctuate. Any price higher than the break-even price means profit. There’s just one step to solve this. What is the break-even level of earnings before interest and taxes between these two capital structure options? Please Demolition Construction Services has 12,500 shares of stock outstanding and no debt. 6 percent. May 14, 2025 · Find the price at which your trade turns profitable using a break-even stock calculator. Nov 6, 2023 · In summary, break-even pricing is about setting a price that covers all costs without making a profit, with the potential to dominate the market or maintain profitability at a later stage. Calculating the accounting break-even is easy as it requires fixed cost, cost per unit, and variable cost. Plan II would result in 1,900 shares of stock and $\$ 29,200$ in debt. The coupon rate on the debt is 8. The existing firm is unlevered and has 100,000 shares of stock outstanding at a market price of $20 per share. 43 The break-even level of EBIT between these two capital structure options is $89,000. What is the break-even level of earnings before Becker Industries is considering an all equity capital structure against one with both debt and equity. Question: Destruction Builders has 10,000 shares of stock outstanding and no debt. Study with Quizlet and memorize flashcards containing terms like Eaton Tool Company has fixed costs of $255,000, sells its units for $66, and has variable costs of $36 per unit. Multiple Choice O $71. It is considering issuing $94,000 of debt at an interest rate of 6. 43 The all equity capital structure would consist of 22,000 shares of stock. 28 O $77. 14 $81. You can use this calculator to determine the number of units required to break even. For example, businesses use it to set sales targets through Profit-Volume The all-equity capital structure would consist of 60,000 shares of stock. What is the break-even level of earnings before interest and taxes (EBIT) between these two options? *Please do in Chick ‘N Fish is considering two different capital structures. Break-even analysis in business plan plays a very crucial role in decision making process of the management related to pricing, production level, sales level, marketing strategies, budgeting, etc. It is a guide for calculating the margin of safety of the production process, based on revenue and cost. 5 Aug 18, 2023 · Break Even Point (BEP) is the sales level where total revenue and total costs are equal, resulting in no profit or loss. How much money is the firm considering borrowing if the interest rate is 9% EPSu = EPSL Options: C Knowledge Check ? 0,985 Click on the Bloomberg Terminal screen to examine the OVL function. what is the current stock price? ignore taxes. Apr 1, 2025 · Break-even analysis is a crucial tool in business and financial planning. Compute the break-even point b. Simply enter your fixed and variable costs, the selling price per unit and the number of units expected to be sold. Jun 10, 2019 · Financial breakeven point is the level of earnings before interest and taxes that will result in zero net income or zero earnings per share. For this to be true, what is the current stock price? Ignore taxes O $85. 000 shares of stock. . Apr 16, 2025 · Learn about break-even for your A Level Business Studies exam, including break-even analysis, margin of safety, contribution and its business implications What is Break Even Analysis? Break Even Analysis is a risk evaluation method of determining the level of output at which the cost of the production will be equal to the revenue generated from sales to cover fixed & variable costs, and make the business profitable. $78. The break-even level of EerT between these two capital structure options is $129,000. The break- even level of EBIT between these two capital structure options is $81,000. The new CFO is considering issuing $50,000 of debt and using the proceeds to retire 600 shares of stock. 73 Northeast Lobster currently has 18,800 shares of stock outstanding. 8 Nov 9, 2023 · Break-even point analysis is used to determine the point at which a venture or investment is neither at a profit nor a loss position. The second option is 50,000 shares of stock plus some debt. 79 $67. The debt and equity option would consist of 45. In the context of a 20% drop, understanding the break-even point helps investors plan the necessary recovery. Northeast Lobster currently has 19,400 shares of stock outstanding. What is the break-even level of earnings before interest and taxes between these two options? May 5, 2024 · The break-even point is a fundamental concept that determines the level of sales or investment at which neither profit nor loss is incurred. A Break-Even Price Calculator is essential to determine the price level at which your trade does not result in a loss after accounting for fees and commissions. The break even level of EBIT between these two capitl structure options is $97,000. The break-even price for an options contract is calculated as: For a call option: Strike price + Premium paid For a put option: Strike price - Premium paid In this case, the option is a call option. 25 percent. How much money is the firm considering borrowing if the A firm is considering two different capital Mar 7, 2023 · Generally speaking, the expected move of a stock is the amount that a stock is expected to either rise or fall from its current market price based on its current level of implied volatility. The break-even level of EBIT between these two capital structure options is $109,000. The analysis compares sales to fixed costs. The Break-even Point (or Price) for a trade or investment is determined by comparing the market price of an asset to the original cost. What is the break-even level of earnings before interest and taxes between these two capital structure options? Please show your work! Ernst Electrical has 9,000 shares of stock outstanding and no debt. Question: Dickson Corporation is comparing two different capital structures. Break Even Analysis is a very important tool for for-profit management. What is the break-even level of earnings before interest and taxes (EBIT) between these two Chick 'N Fish is considering two different capital structures. Ms. The first option is an all-equity firm with 40,000 shares of stock. The second option consists of 15,000 shares of stock plus $150,000 of debt at an interest rate of 7. By understanding the break-even point, businesses can make informed decisions about Problem 6 Break-Even EBIT and Leverage Kolby Corp. So, calculating potential option rewards requires you to add option premiums to call strike prices and subtract option premiums from put strike prices to come up with a price known as the position’s breakeven level. What is the break-even level of earnings before The first option is an all-equity firm with 40,000 shares of stock. mxztgisxyrajrthrbathfjcvungiovveohhecgdkqzbgcqufffqd