1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kirill [66]
2 years ago
14

A good estimation of firm value will recognize that the numbers are simply estimates that are based on _______.

Business
1 answer:
kap26 [50]2 years ago
8 0

A good estimation of firm value will recognize that the numbers are simply estimates that are based on assumptions.

Generally, the estimation of firm value is said to be based basically on some assumptions which shows what was the value of what will be the value of the firm in the future with respect to some parameters.

Estimation of Firm Value

  • The firm value is also known as FV
  • It is a concept of economy. It reflects the value of business. The sum of claims of its creditors and shareholders is the firm's value. By adding the market value of its debt, equity and minority interest is the simplest way to measure. To arrive at the net value, cash and cash equivalents would be deducted. It is a value which tells that business is worthy at a date.
  • The three types of valuation methods are used for business value that are:
  • Market
  • Cost
  • Income
  • There are some assumptions for firm value:
  • Going Concern Assumption
  • Re-investment Assumptions
  • Dividend Payout Assumptions
  • Macro-Economic Assumptions
  • Industry Assumptions

To learn more about estimation of firm value, visit: brainly.com/question/15004738

#SPJ4

You might be interested in
If the direct materials price variance is $500 favorable, and the direct materials quantity variance is $250 unfavorable, the jo
Norma-Jean [14]

Answer: Options B and C

Explanation:

To account for Direct Material Variance for for price and quantity, it is pertinent to note that Unfavorable variances should be  recorded as debits while favorable variances should be recorded as credits.

Therefore

If the direct materials price variance is $500 favorable, Then Credit should be made to direct material price variance and

If the direct materials quantity variance is $250 unfavorable, Then  a Debit should be made to direct materials quantity variance.

8 0
3 years ago
You are buying a home for $360,000. If you make a down payment of $60,000 and take out a mortgage on the rest at 8.5% compounded
MatroZZZ [7]

Answer:

$2954.22

Explanation:

We are given a present value of $360000 which needs to be paid in the future for the mortgage of a house therefore we are further told that $60000 of down payment has been made so now we are required to pay $300000 as monthly installments for the next 15 years so this is a present value annuity problem as we will have future regular periodic payments that for a house mortgage so firstly to interpret this information properly we will use the present value annuity to find the monthly payments which the formula is as follows:

Pv = Cx[(1 -(1+i)^-n)/i]  

where C is the periodic payment we are looking for.

Pv is the present value for the home which is $300000 as a down payment of $60000 was made.

i is the interest rate which is 8.5%/12 as we are told it is compounded monthly.

n is the number of periods the in which the mortgage payments are made which is 15 years X 12 months =180 payments.

now we will substitute in the above mentioned formula :

$300000 = Cx[(1-(1+8.5%/12)^-180)/(8.5%/12)] now we will divide both sides with what multiplies C in brackets to solve for C

$300000/[(1-(1+8.5%/12)^-180)/(8.5%/12)] = C

$2954.218674 = C now we round off to two decimal places

C= $2954.22 which will be the monthly payment for this mortgage for 15 years every month.

6 0
3 years ago
Dr. Byron offers two possible solutions to sleep problems. If you had a child that would not sleep, which solution do you think
natita [175]
Some solutions when your child cannot go to sleep would be:

Your baby needs to learn how to comfort himself and put himself back to sleep. You can begin slowly by introducing a soft toy or blankie during cuddle time. 
It's important to teach your blind baby the cues that indicate a shift from day to night. This means that you will want to establish a pretty strict night time routine
8 0
3 years ago
Peter is writing an e-mail message to his staff that the new computers promised to arrive on Monday will be delayed for two week
djyliett [7]

Answer:

<em>Indirect Pattern</em>

Explanation:

<em>The proof is first provided in the indirect technique, thus contributing to the primary notion of the message. This is an assumption that is empirical.</em>  

If the reader or recipient may be disappointed or resist what you have to say, this strategy is best.  

Sometimes writing with an exceptionally confident attitude can be considered arrogant, particularly if you are a newer member of an organisation or an outsider.  

You might want to use an indirect approach in these kind of cases, or if the receiver is wary or confrontational.

7 0
4 years ago
A store has two different coupons that customers can use. One coupon gives the customer $15 off their purchase, and the other co
andrey2020 [161]

Answer:

16.25;

g(f(x)) ;

76 ;

f(g(x))

Explanation:

For 15 off

f(x) = x - 15

For 35% off

g(x) = (1 - 0.35)x = 0.65x

g(x) = 0.65x

A.)

For the $15 off coupon :

f(x) = x - 15

f(x) 40 - 15 = 25

For the 35% coupon :

g(x) = (1-0.35)x

g(x) = 0.65(25)

g(x) = 16.25

B.)

Applying $15 off first, then 35%

Here, g is a function of f(x)

g(f(x))

Here g(x) takes in the result of f(x) ;

For the $140 off coupon :

f(x) = x - 15

f(140) = 140 - 15 = 125

For the 35% coupon :

g(125) = (1-0.35)x

g(124) = 0.65(125) = $81.25

C.)

x = 140

g(x) = 0.65x

g(140) = 0.65(140)

g(140) = 91

f(x) = x - 15

f(91) = 91 - 15

f(91) = 76

D.)

Here, F is a function of g(x)

f(g(x))

f(x) = (0.65*140) - 15

6 0
3 years ago
Other questions:
  • Nelson, the HR Director of a large organization, is concerned about the lack of a large internal pool of talent for middle and u
    12·1 answer
  • Suppose a firm in a competitive market produces and sells 8 units of output and has a marginal revenue of $8.00. What would be t
    5·1 answer
  • The opportunity cost to a consumer who smokes cigarettes is the:
    8·1 answer
  • The S&amp;R index spot price is 1100, the risk-free rate is 5%, and the continuous dividend yield on the index is 2%. a. Suppose
    10·1 answer
  • Indicate whether each of the following descriptions represents saving or investment, as defined by a macroeconomist. Description
    14·1 answer
  • Viết lý do chọn đề tài hay về chiến lược xúc tiến của công ty grab
    8·1 answer
  • Plz solve this, look at the 2 picture
    8·1 answer
  • With regard to a limited partner's capital contribution to the limited partnership: A. the limited partner can only contribute c
    12·1 answer
  • Why is creativity essential to an entrepreneur?
    6·2 answers
  • According to Herzberg, which group of motivational factors would give employees the most satisfaction
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!