Answer:
$315,198
Explanation:
WACC = [ Equity / Total value ] * cost of equity + [ Debt / Total value ] * Cost of debt.
WACC = 11.5%
Exit multiple = Total cash outflow / Total cash inflow
Exit multiple = $120,000 / 36,000 = 3.3x
EBITDA of the company is $178,412.
Answer:
$68.23
Explanation:
In this question, we apply the dividend growth rate model which is shown below:
The computation of the current share price is shown below:
= (Current year dividend) ÷ (Rate of return on company stock - growth rate)
= ($4.23) ÷ (10.6% - 4.4%)
= ($4.23) ÷ (6.2%)
= $68.23
We simply find out the ratio between the current year dividend per share and difference between the rate of return and the growth rate
This is an example of "Equilibrium in business"
<u>Explanation:</u>
Equilibrium is the state of balance between market supply and demand, and as a consequence, prices are stable. Over-supply of goods or services generally causes prices to fall, leading to higher demand. The offers and demand balance effect results in a stable state. Here as Denny have good retail distribution network which allow him to supply across city and maintain lower price due to good availability of ice creams. For Denny reaching to the customers was easy via vans, thus his ice-creams had lower price.
Answer:
Here is the complete question with options: Abbey Company completed the annual count of its inventory. During the count, certain items were identified as requiring special attention. Decide how each item would be handled for Abbey Company's inventory.
item#1: Goods in transit shipped to Abbey(Purchaser) FOB destination:
item#2: Goods in transit shipped to Abbey(purchaser) FOB shipping point.
item#3: Goods in transit shipped by Abbey(seller) FOB destination.
item#4: Goods in transit shipped by Abbey(seller) shipping point.
Now, checking how these items are handled by Abbey company´s inventory.
item#1: Goods in transit shipped to Abbey(purchaser) FOB destination: Excluded from inventory as goods has not arrived to the buyer´s place, therefore, ownership will not be transferred.
item#2: Goods in transit shipped to Abbey FOB (purchaser) shipping point: Included in inventory as goods are shipped to shipping point, so ownership will be transferred if carrier accept the goods from the seller.
item#3: Goods in transit shipped by Abbey FOB(seller) destination: Included in the inventory as Abbey owns the goods while goods is in transit.
item#4: Goods in transit shipped by Abbey(seller) shipping point: Excluded from inventory as a seller, Ownership has been transferred from Abbey.