Answer:
1.
Determine the reporting Date and period. 2. Identify your assets. 3. Identify your liabilities.
4. Calculate shareholders' equity.
Add total liabilities to total shareholders' equity and compare to the assets.
Answer:
Truman has a higher inventory turnover ratio and Stapleton has a higher gross profit ratio ( D )
Explanation:
Truman sell a large number of common household items ( assuming 100 unit )
while Stapleton sells a small number of expensive items ( assuming 20 units )
lets assume : Truman sells at $5 per unit and Stapleton sells at $50 per unit
with the above assumptions
Truman gross profit ratio = $5 * 100 units = $500
Stapleton gross profit ratio = $50 * 20 units = $1000
from the above assumptions you can deduce that the gross profit made by Stapleton is higher although he sells a smaller amount of goods while Truman has a higher Turnover because of its higher number of sold units
B.one loaf of bread free when you buy one at regular price of 68 cents per loaf
Answer:
$463.67 million
Explanation:
The computation of the expected terminal enterprise value is shown below:
Terminal Enterprise value is
= Free cash flow × (1 + growth rate) ÷ (Weighted average cost of capital - growth rate)
= $26 million × (1.07) ÷ (0.13 - 0.07 )
= $27.82 million ÷ 0.06
= $463.67 million
We simply applied the above formula to determine the expected terminal value
