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Katen [24]
3 years ago
12

A firm expects to earn $10,000,000 in cash in 2018. The firm also expects to increase its cash earnings by 2% each year in perpe

tuity. Using a discount rate of 7.50%, what is the current value of this firm?
Business
1 answer:
deff fn [24]3 years ago
3 0

Answer:

$181,818,181.82

Explanation:

The computation of the current value of this firm is shown below:

= (Firm expectation to earns in cash) ÷ (discount rate - increased cash earning percentage)

= ($10,000,000) ÷ (7.5% - 2%)

= ($10,000,000) ÷ (5.5%)

= $181,818,181.82

In order to find out the current value, we considered all the given information that are mentioned in the question

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It should be on google 
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2 years ago
Fashion house uses the retail method to estimate ending inventory in his monthly financial statements the following information
IgorC [24]
If we used the retail method to estimate the ending inventory first we get the given of the problem that can be used in solving.
 Given
  Sales - 200,000
  Goods available for sale - 261,000 (cost) & 450,000 (retail) 

First, we need to get the cost of retail ratio. the formula is 
 Cost to Retail ratio= Cost/ Retail
           261,000
CRR= -------------   =   0.58
           450,000

Next is to get the ending inventory by following this steps
                                                              Cost             Retail
Cost of Goods Available for Sale    $261,000        $450,000
- Sales                                                                        $200,000
                                                                                  ------------------
Ending Inventory                                                        $250,000
x Cost to Retail Ratio                                                           .58
                                                                                  ------------------
Ending Inventory                                                       $145,000

So, the estimated ending inventory for the month of July is $145,000. 
4 0
3 years ago
Bailliere Company recorded cash sales of $300,000 and cost of goods sold relating to those sales of $120,000 on its Excel spread
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Answer:

Option B

Cost of goods reported =$ 125,000

Explanation:

<em>Overheads are charged to units produced by the means of using an estimated overhead absorption rate. This rate is computed using budgeted overhead and budgeted activity level. </em>

As a result of this, overhead charged to total units product might be over or under absorbed compared to the actual amount incurred.

<em>The under applied overhead implies that the applied overhead is less than the actual overhead. </em>

This implies that the cost of the goods are under valued. Hence, to accurately valued them, the under applied overhead would be added to the cost of the goods.

Cost of goods reported = cost of goods + under applied overhead

                                       = 120,000 + 5,000 = 125,000

Cost of goods reported =$ 125,000

6 0
3 years ago
A nation's capital goods wear out over time, so a portion of its capital goods become unusable every year. last year, its reside
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<span>In the current year, the nation's economic growth will be negative. This is an outcome produced by all factors involved. There have been no capital goods produced, and therefore, no income can be generated by capital goods. There has been no growth in population or in any productive resources that could yield come kind of economic growth for the nation.</span>
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3 years ago
Swifty Corporation had 197000 shares of common stock, 19200 shares of convertible preferred stock, and $1503000 of 4% convertibl
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Answer:

d. $2.18

Explanation:

The answer with detailed working is attached.

Download xlsx
8 0
3 years ago
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