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3 years ago

Tanner has invested $500 for college. what rate of return must tanner earn for his investment to double in six years

1 answer:

6 0

This is answered using the Rule of 72. This is the easiest way to know how long an investment will take to double, given a fixed annual rate of interest
The rule of 72 is the period to double multiplied by the interest rate equal 72.

So to do this: Just divide 72 and 6. 72/6 = 12% would be the rate of return

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You estimate Bayleaf Inc. has free cash flows of $70 million arriving in 1 year, $74 million in 2 years, and $80 million in 3 ye

Tcecarenko [31]

Answer:

If no information of how many years expected for the FCF in Bayleaf, then I assume you expect FCF in 4 years only.

Then the Enterprise Value of Bayleaf is nil, since its valuation is negative of roughly $19,871.

However if we expect to have FCF in 20 years, in which the growth rate of FCF in year 4th is 3% year on year, then the valuation of Bay Leaf Inc. is roughly $347 million.

Explanation:

The valuation of enterprise is Net present value (NPV) of Free Cash Flow (FCF) minus its Net Debt

In the NPV, the discount rate is weighted average cost of capital (WACC); thus we can calculate NPV of FCF in Bayleaf by this function in excel = NPV(14%,70000,74000,80000) = $221,129,242

Then the valuation of company if considering FCF in 4 years is ($19,871)= NPV of FCF – Net Debt = $221,129,242 - $241,000,000

Please see excel attached for your details.

Download xlsx

5 0

3 years ago

In the third step of the strategic management process, managers should:

zhannawk [14.2K]

In the third step of the strategic management process, managers should: Establish the organization's objectives .

Strategic management process simply means to formulate organization strategic that will enables the organization to achieve their goals and objectives.

When managers formulate a strategy it means that they are establishing and setting the direction for their business as this will help to designate the kinds of activities that will make their plan to become a reality.

When it comes to strategic management process It is important that managers establish objectives they want to achieve when planning to take action that will help implement the plan and vision the organization has for the future.

Inconclusion In the third step of the strategic management process, managers should: Establish the organization's objectives.

Learn more here:

brainly.com/question/14673413

5 0

3 years ago

Robert Brown is interested in attending a concert next weekend. Unfortunately, he is scheduled to work. If he finds a substitute

marin [14]

Answer:

Opportunity cost relating to time

Explanation:

Opportunity cost refers to the benefits foregone of a non chosen option when a choice is made and an option is chosen.

The concept of opportunity cost relates to the sacrifice made of one option to pursue another option since both cannot be chosen at a time.

In the given case, Mr Brown is desirous of attending a musical concert but is scheduled to work for the same time and duration as the concert. So he can either work or go for the concert. Attending the concert would mean loss of income for hours worked instead.

7 0

4 years ago

Determine the taxable income for a family of four (husband, wife, two children) if their adjusted gross income is $78,236.00 and

Ivahew [28]

I think its 75,186.00 that's what I got but check frets I might be wrong lol

7 0

3 years ago

Read 2 more answers

Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system).

alukav5142 [94]

Answer:

Cash 27,550 debit

credit card fee 1,450 debit

A/R 29,000 credit

--to record sales for Mastercard--

COGS 22,200 debit

Inventory 22,200 credit

--to record cost of good sold for the previous sale--

Cash 5,664 debit

credit card fee 236 debit

A/R 5,900 credit

--to record sales for Mastercard--

COGS 3,450 debit

Inventory 3,450 credit

--to record cost of good sold for the previous sale--

Explanation:

The credit card charges a fee and provides cash for the firm. It removes the effort to collect from the customer.

master card fee and net proceeds:

29,000 x 5% = 1,450

net: 29,000 - 1,450 = 27,550

bank credit card fee and net proceeds:

5,900 x 4% = 236

net 5,900 - 236 = 5,664

7 0

4 years ago