No matter what way you approach raising money for your business, you will need a ________. written business plan family investme
1 answer:
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Answer:
Book Value Per Share = 22.55
Explanation:
given data
equity = $118,139,000
net income next year = $3,000,000
to find out
what would their Book Value be next year
solution
we know that Book Value Per Share formula that is express as
Book Value Per Share = (Share Holder Equity+ Net Income) ÷ No of Shares ..................1
we consider here book value is $22
So no of share will be =
No of shares =
No of shares = 5369954.545
so from equation 1 put here value
Book Value Per Share =
Book Value Per Share = 22.55
Answer:
Location C costs least to the company as it only costs $461,160
Explanation:
We will evaluate all the three proposals
Location A Cost = $500,000
Location B
Down payment = $100,000
Annual year end payment = $50,000 for upcoming 20 years
Present value @ 8% = ( = 9.818 X $50,000 = $490,900
Net Present Value = $100,000 + $490,900 = $590,900
Location C
Payment of $40,000 at the beginning of each year, which means first payment will not be discounted and remaining 24 payments will be discounted.
Thus Present Value = $40,000 +( = $40,000 + 10.529 X $40,000 = $40,000 + $421,160 = $461,160
Thus Location C costs least to the company as it only costs $461,160