Answer:
The value per share of common stock today is $23.94
Explanation:
To calculate the worth of the stock today, we first need to calculate the value of firm using FCF and then calculate the value of equity by deducting the market value of debt and preferred stock from the value of firm. Then we will divide the value of equity by the number of common stock shares.
Value of firm will be calculated using the discounted cash flows model approach. The value of firm will be,
Value of firm = 780000 * (1+0.1) / (1+0.13) + 780000 * (1+0.1) * (1+0.08) / (1+0.13)^2 + 780000 *(1+0.1)*(1+0.08)*(1+0.07) / (1+0.13)^3 +
[ 780000 *(1+0.1) *( 1+0.08) *(1+0.07) *(1+0.06)) / (0.13 - 0.06)] / (1+0.13)^3
Value of firm = $12,577,754.16
Value of equity = $12,577,754.16 - (2000000 + 1000000) = $9,577,754.159
Value per share = $9,577,754.159 / 400000
Value per share = $23.944 rounded off to $23.94
Bad Debts Expense is debited when an account is determined to be <u>uncollectible</u> under the direct write-off method of accounting for uncollectible accounts,
Bad Debts Expense refers to the portion of account receivables that a firm has assumes not be recoverable from the debtor.
In conclusion, the Bad Debts Expense is debited when an account is determined to be <u>uncollectible</u> under the direct write-off method of accounting for uncollectible accounts,
Read more about Bad Debts Expense
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Profit of 10,750. 91,750 - 81000= 10,750/
Answer:B
Explanation:
This is because as one's income increases his aggregate demand also increases as they both have direct relationship with each other.
Answer:
30%
Explanation:
The computation of the profit margin is shown below:
Given that
Net income earned for the month of October = $3,000
And, the net sales for the month of October is $10,000
Based on the above information, the profit margin is
= Net income ÷ Net sales
= $3,000 ÷ $10,000
= 30%
By dividing the net income from the net sales we can get the profit margin and the same is to be considered
