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gladu [14]
11 months ago
11

You are considering an investment into company xyz and need to determine the company's value and the appropriate investment amou

nt. You have been provided with historical financial statements for the past three years in order to build a forecast model. Key assumptions to use include: future sales revenue is assumed to increase at 2. 5% annually. Gross margin for 2021e is assumed to be equal to the average gross margin % for 2019 and 2020, but will decrease by 2. 5% (i. E. 250 bps) each year thereafter sg&a expense is assumed to be a percentage of revenue for the forecast period. That percentage is equal to the 2018-2020 average depreciation expense is assumed to be a percentage of revenue for the forecast period. That percentage is equal to the 2018-2020 average the tax rate for the forecast period is assumed to be equal to the effective tax rate for 2018 capital expenditures for any given year in the forecast period is assumed to be 3x the prior year's depreciation expense. For example, 2021 capital expenditures is equal to 3x 2020 depreciation expense. No new debt or equity is assumed to be issued.
Business
1 answer:
ZanzabumX [31]11 months ago
8 0

Option A is correct. The gross earnings that has been calculated for this 12 months is given as 17545.

The required details for gross earnings in given paragraph

How to resolve for the gross earnings

22050 × 97.5%(100-2.5%) = 21498.75

= 21498.75 × 0.975 = 20961.28

= 20961.28 x 0.975 = 20437.24

= 20437.24 x  0.975  = 19926.31

= 19926.31 ×  0.975  = 19428.15

= 19428.15 x  0.975  = 18942.forty five

= 18942.forty five x  0.975  = 18468.80

= 18468.89 ×  0.975  = 18017

= 18007 × 0.975  = $17545

Hence we are able to see on the give up of the answer that the price of the gross earnings in 2028 = $17545. Gross earnings is the earnings a business enterprise makes after deducting the charges related to making and promoting its products, or the charges related to offering its services. Gross earnings will seem on a business enterprise's earnings assertion and may be calculated with the aid of using subtracting the fee of products sold (COGS) from revenue (income).

These figures may be determined on a business enterprise's earnings assertion. Gross earnings will also be called income earnings or gross earnings.

To know about  Gross earnings click here

brainly.com/question/21637154

#SPJ4

Complete question

You are considering an investment into Company XYZ and need to determine the company's value and the appropriate investment amount. You have been provided with historical financial statements for the past three years in order to build a forecast model. Key assumptions to use include:

Future sales revenue is assumed to increase at 2.5% annually.

Gross margin for 2021E is assumed to be equal to the average gross margin % for 2019 and 2020, but will decrease by 2.5% (i.e. 250 bps) each year thereafter

SG&A expense is assumed to be a percentage of revenue for the forecast period. That percentage is equal to the 2018-2020 average

Depreciation expense is assumed to be a percentage of revenue for the forecast period. That percentage is equal to the 2018-2020 average

The tax rate for the forecast period is assumed to be equal to the effective tax rate for 2018

Capital expenditures for any given year in the forecast period is assumed to be 3x the prior year's depreciation expense. For example, 2021 capital expenditures is equal to 3x 2020 depreciation expense.

No new debt or equity is assumed to be issued

Download CFI_-_FMVA_Practice_Exam_Case_Study_A.xlsx and answer the following 12 questions.

1 What is Gross Profit in 2028E using the assumptions listed above and on the Control Panel?

$17,545

$30,704

$27,780

$40,938

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Answer:

The importance maxim just serves to make the business look good .

Explanation:

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Answer: When employees are provided with a conducive environment they perform better than normal and with good products and services customers are satisfied hence more profit. The CEO should ensure all department work with same goal for the benefit of the organization

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3 years ago
Which of the following consists of everything outside an organization's boundaries that might affect how the business operates?
seraphim [82]

The external factors that might affect how the business operates are:

  • A. Domestic business environment
  • B. Political-legal environment
  • C. External environment

<h3>What are the external factors that impact business operation?</h3>

The external factors that impact business operations include:

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The corporate culture of an organization is outside its boundaries.

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Partridge Co. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15
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Answer:

Differential cost= $9.25

Differential revenue= $16

Explanation:

As the name suggest, differential cost is the difference between the costs of two alternative options. Now in this question, Patridge Co. has two products, PJ AND PD, <em>one of which (i.e PD) can be produced by further processing an already produced product (i.e PJ). But for the production of product D, Patridge Co. would have to incur additional cost of $9.25 per pound. </em>

The formula for differential cost is as follows;

Differential cost= total cost of alternative J - total cost of alternative D

Differential cost= $15.75 - ($15.75+$9.25)

Differential cost= $9.25

Differential revenue is similarly the difference between the revenue generated by two alternatives. In this question product J sells for $21 whereas product D sells for $37 so the differential revenue would be as follows:

Differential revenue = revenue of alternative D - revenue of alternative J

Differential revenue= $37 - $21

Differential revenue= $16

7 0
3 years ago
Brick and Carmen are in an auto accident. Brick offers Carmen $2,000 if she promises not to pursue her potential legal claim aga
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