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77julia77 [94]
3 years ago
12

Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions) .

Business
1 answer:
sammy [17]3 years ago
7 0

Answer:

C. $385.7m

Explanation:

Enterprise value = Market value of equity + Market value of all types of debt - Cash in the balance sheet

Market value of equity = Current share price × number of shares outstanding

= $16 × 10.2 million shares

= $163,200,000

Market value of all types of shares = Market value of long term debt + Market value of current portion of long term debt + notes payable / short term debt

We assume that market value of debts = Book value of debts

Therefore,

Market value of debt = $227m + $40.7m + $10.9m

= $278.6 m

Cash in the balance sheet = $56.10 m

Therefore;

Enterprise value = $163.20m + $278.60 - $56.1

=$385.7 m

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The following account balances were taken from the adjusted trial balance for Capstone Messenger Service, a delivery service fir
Phoenix [80]

Answer and Explanation:

The preparation of the income statement is presented below:

Revenues

Fees earned $520,400

Total revenues $520,400

Less expenses:

Depreciation Expense $9,800

Insurance Expense $1,860

Miscellaneous Expense $3,920

Rent Expense $74,500

Salaries Expense $261,700

Supplies Expense $3,330

Utilities Expense $28,400

Total expenses $383,510

Net income $136,890

4 0
3 years ago
Blue Ace Autos Inc. and Ferdova Autos Inc. are two competing automobile companies. While Blue Ace Autos' Cost of goods sold/Reve
scoray [572]

Answer:

A. Blue Ace Autos is less efficient than Ferdova Autos in producing goods.

Explanation:

The cost/ revenue ratio of Ferdova Autos is lower than that of Blue Ace, this indicates that for Ferdova Autos ,either revenue is higher or cost is lower than that of Blue Autos.

For example, let us imagine that the revenue of both companies is $60 million and th cost of production for Ferdova Autos is $32.52 (0.542 × 60 million ) million and that of the other company is $38.04 million (0.634 × 60).

We can see that Ferdova Autos spends less to generate the same amount of revenue. This means that Ferdova Autos is more efficient in production when compared with blue autos.

I hope my answer helps you

6 0
3 years ago
The change in the capital stock is a flow variable. <br> a. True <br> b. False
Sphinxa [80]
I think it's false hoped I helped 

4 0
3 years ago
What is the approximate yield to maturity and the exact yield to maturity (use a calculator) for the $1,000 semi-annual bond? As
bagirrra123 [75]

Answer:

6.67% and 6.694%

Explanation:

The computation of the approximate yield to maturity and the exact yield to maturity is shown below:

For Approximate yield to maturity it is

= 2 × ((Face value - current price) ÷ (2 × time period) + face value × coupon rate ÷ 2) ÷ (Face value + current price) ÷ 2)

=2 × (($1,000 - $950) ÷ (2 × 10) + $1,000 × 6% ÷ 2) ÷ (($1,000 + $950) ÷ 2)

= 6.67%

Now

the Exact yield to maturity is

= RATE(NPER,PMT,-PV,FV)

= RATE (10 × 2, 6% × $1000 ÷ 2,-$950,$1,000) × 2

= 6.694%

7 0
2 years ago
Melissa is a minor who agrees to purchase a car from Umberto for $10,000 one month after she turns eighteen years of age. On tur
BartSMP [9]

Answer:

enforceable because it has been expressly ratified by Melissa.

Explanation:

A contract is defined as a legally binding agreement between parties, and is enforceable on both parties involved. There is usually an offer and acceptance to make the contract valid and enforceable. It can involve exchange of goods and services, or future promise to exchange goods and services.

In this instance bMelinda agreed with Umberto that she will buy a car from him when she turns 18 years. The condition to the contract was Melinda turning 18 years.

She has ratified this condition so the contract is now enforceable.

7 0
3 years ago
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