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1 year ago

Estimates of a stock's intrinsic value calculated with the free cash flow methodology depend most critically on _______.

1 answer:

4 0

Estimates of a stock's intrinsic value calculated with the free cash flow methodology depend most critically on the terminal value used.

What is intrinsic value of stock?

A thing, asset, or financial contract can have intrinsic value if it has some basic, objective value. It may be a good buy or a good sale if the market price is less than that value. There are various approaches for determining a reasonable appraisal of a share's intrinsic value when reviewing equities.

What does terminal value mean?

The worth of a firm, project, or asset after the period for which future cash flows can be predicted is known as its terminal value (TV). After the projected period, terminal value assumes a company will continue to expand at a specific pace indefinitely.

Learn more about intrinsic value: brainly.com/question/14582100

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Willow Trees Inc. makes seven different products, four of which are within their first year of existence. The demands for all pr

Papessa [141]

Answer:

Willow Trees Inc. should use bottom-up planning

Explanation:

Bottom-Up Planning is an effective method to increase productivity and efficiency of the production process. It includes planning, and defining the objectives that company needs to achieve through bottoms first.

Firstly, targets that will help achieve lower level hierarchy are set into place. From there they are slowly incorporated in higher level goals that will eventually reach the global goals of the company.

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3 years ago

Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840 to wire electricity to the

Aleksandr-060686 [28]

Answer:

First we must determine the total cost of the machine:

total cost = $178,000 + $2,480 + $1,160 = $181,640

Now we must find the depreciable value:

depreciable value = total cost - salvage value = $181,640 - $14,000 = $167,640

since the machine is going to be used for six years, the depreciation expense per year = depreciable value / useful life

depreciation expense per year = $167,640 / 6 years = $27,940

if it was depreciated during 5 years, the total depreciation expense would be: $27,940 per year x 5 years = $139,700

If the machine was depreciated before time, and sold only at its salvage value, Onslow Corp. should report a loss of $27,940.

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3 years ago

In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem,

Leni [432]

Answer:

Y = C + I + G + NX

S = Y - C

S = I + G + NX

Explanation:

National Income Y = C + I + G + NX ; {where consumption, investment, government purchases, net exports ie exports - imports are corresponding expenditure of households, firms, government, rest of the world}

National Saving (S) is income (Y) left after paying for consumption (C) . So, S = Y - C

Using above equations, Y = C + S , Y = C + I + G + NX

C + S = C + I + G + NX

So, S = I + G + NX

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2 years ago

Kinney, Inc., an electing S corporation, holds $5,000 of AEP and $9,000 in AAA at the beginning of the calendar tax year. Kinney

Murrr4er [49]

Answer:

Explanation:

The total AAA available is $15000($10000+$5000(taxable income)).

The total distribution $18000(($6000×2)+($3000×2))

Here since available AAA is $15000 each get deduction of $7500($15000×500shares/1000shares).Hence $1500(i.e $6000+$3000-$7500) is taxable.

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3 years ago

Suppose the total monetary value of all final goods and services produced in a particular country in 2015 is $500 billion and th

skelet666 [1.2K]

Answer:

C. GDP in 2015 is $500 billion.

Explanation:GDP(GROSS DOMESTIC PRODUCT) is a macroeconomic measure that is used to describe the total monetary value of the goods and services rendered within an economy in a given period of time usually annually.

IT IS GENERALLY BELIEVED THAT THE HIGHER THE GROSS DOMESTIC PRODUCT (GDP) IN AN ECONOMY SIGNIFIES THAT THE ECONOMY IS EFFICIENT IN MANAGING ITS PRODUCTIVE RESOURCES AND THE PRODUCTIVITY OF THE ECONOMY IS HIGH.

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2 years ago