Answer:
$170 million
Explanation:
First we must calculate the implied fair value of goodwill:
fair value of goodwill = Sanchez's fair value - Sanchez's asset valuation = $1,020 million - $900 million = $120 million
impairment loss = recorded goodwill - fair value of goodwill = $290 million - $120 million = $170 million
An impairment loss is a loss generated by the decline of an asset's fair value.
Answer:
The value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places
Explanation:
We first need to calculate the required rate of return for this firm that will be used as the discount rate in the valuation of the firm using the discounted cash flow methods.
Using the CAPM we can calculate the required rate of return as,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on Market
So,
r = 0.04 + 0.4 * (0.11 - 0.04)
r = 0.068 or 6.8%
As the cash flows the firm can generate are expected to remain constant through out and they are generated after equal interval of time, this can be treated as a perpetuity.
The present value of a perpetuity is calculated as follows,
Present Value of perpetuity = Cash Flow / r
Present value of perpetuity = 10000 / 0.068
Present value of perpetuity = $147058.8235
So, the value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places
Answer:
Copyright is a form of protection grounded in the U.S. Constitution and granted by law for original works of authorship fixed in a tangible medium of expression. Copyright covers both published and unpublished works.
Explanation:
i looked it up
Answer:
do you watch riverdale?
pls dont report me im jus bored -_-
Explanation:
According to the principles of supply and demand, the price of a product increases, the amount supplied will also increase because there is positive relationship between price and quantity supplied.
<h3>Why when price increases supply also increases?</h3>
Economists States that there is a positive relationship between price and quantity supplied—that means a higher price leads to a higher quantity supplied and a lower price leads to a lower quantity supplied.
Principle of supply states that at a higher price, a producer is willing to produce more of a good.
Principle of demand states that at a higher price, a consumer is less willing to purchase a good.
Learn more about the principles of supply and demand here:-
brainly.com/question/1967319
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