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Andre45 [30]
3 years ago
11

Heavy Metal Corporation is expected to generate the following free cash flows over the next five years.

Business
1 answer:
mezya [45]3 years ago
4 0

Answer:

Enterprise value of Heavy Metal= $1,080.766

Share price =  $18.945 per unit

Explanation:

<em>The value of a firm is the present value of the free cash flow discounted at the weighted average  cost of capital</em>

Year                                          PV

1        52.1 × 1.14^(-1)      = 45.70175439

2        68.6 × 1.14^(-2)  = 52.40073869

3          78.6 × 1.14^(-3) = 53.05276117

4         74.4×  1.14^(-4) = 44.05077264

5          81.1 ×  1.14^(-5) = 42.12079868

Year  and beyond

  81.1 × 1.04/(0.14-0.04) = 843.44

Total value =   45.70+ 52.40+53.052 + 44.050 +42.120+  843.44 = 1080.766826

Enterprise value of Heavy Metal= $1,080.766

Share price = Total value - Debt value / number of shares

=  (1,080.766  - 304 )/ 41 million units= $18.945 per unit

Share price =  $18.945 per unit

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How many bits would need to show on a binary odometer if you wanted to have the ability to count up to 500?
MrRissso [65]
The binary system count 0 and before shifting left.
Therefore repeated divisions of 500 by 2 will yield the bits as reminders.
 
500/2 = 250 R 0
250/2 =  125 R 0
125/2  =   62 R  1
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  31/2  =    15  R 1
  15/2  =     7  R 1
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500 = 1 1 1 1 1 0 1 0 0
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3 0
3 years ago
A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
strojnjashka [21]

Answer:

Total gross margin= $75,480

Explanation:

Giving the following information:

Selling price $ 146

Units in beginning inventory 0

Units produced 2,470

Units sold 2,040

Variable costs per unit:

Direct materials $ 50

Direct labor $ 20

Variable manufacturing overhead $ 11

Fixed costs:

Fixed manufacturing overhead $ 69,160

<u>The absorption costing method includes all costs related to production, both fixed and variable.</u> The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

<u>First, we need to calculate the unitary production cost:</u>

<u></u>

Unit product cost= direct material + direct labor + total unitary overhead

Unitary fixed overhead= 69,160 / 2,470= $28

Unit product cost= 50 + 20 + (11 + 28)= $109

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Unitary Gross margin= selling price - Unit product cost

Unitary Gross margin= 146 - 109

Unitary Gross margin= $37

Total gross margin= 37*2,040

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Answer:

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