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wariber [46]
3 years ago
11

Year 1 2 3 4 Free Cash Flow ​$12 million ​$18 million ​$22 million ​$26 million Conundrum Mining is expected to generate the abo

ve free cash flows over the next four​ years, after which they are expected to grow at a rate of 3​% per year. If the weighted average cost of capital is 13​% and Conundrum has cash of​ $80 million, debt of​ $60 million, and 30 million shares​ outstanding, what is​ Conundrums expected terminal enterprise​ value
Business
1 answer:
makkiz [27]3 years ago
4 0

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

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If during 2009, the country of Sildavia recorded a GDP of $65 billion, interest payments of $15 billion, imports of $13 billion,
Vitek1552 [10]

Answer:

$36 billion

Explanation:

The computation is shown below:

For this question, we use the income approach for calculation the wages i.e shown below:

GDP = Interest payments + profits + rent + wages

$65 billion = $15 billion + $7 billion + $7 billion + wages

$65 million = $29 billion + wages

So, the wages would be

= $65 billion - $29 billion

= $36 billion

3 0
3 years ago
An internal report prepared to verify the accuracy of both the bank statement and the cash accounts of a business or individual
timurjin [86]

Answer:

D. bank reconciliation.

Explanation:

A bank reconciliation mainly computed by an accountant, gives the difference between the balance in relation to the bank statement and the cash balance with respect to the accounting records of the depositor in a particular financial institution.

In Financial accounting, a bank statement can be defined as an official summary or list of financial transactions, which typically comprises of the amount of money that has been paid into or withdrawn from an account by an individual or business entity over a specific period of time.

Generally, a bank statement usually has the following information charges, deposits, withdrawals, including the opening and closing balance for each account held at a given the period. Thus, bank customers are advised to frequently reconcile their records with bank statements in order to prevent not-sufficient funds (NSF) checks.

A not-sufficient funds (NSF) checks refers to a check that isn't honored by the bank of the issuer due to the fact that the individual or business entity has an insufficient fund. It is also known as a bounced or bad check.

In conclusion, a bank reconciliation is an internal report that is prepared in order to verify the accuracy of both the bank statement and the cash accounts of a business or individual.

7 0
3 years ago
Connie the consumer frequently buys both coffee and tea at the OU Library store. Theprice of coffee is $3.00 while the price of
Harman [31]

Answer / Explanation:

Before answering this question, let us understand some terms used in the narrative:

Marginal Utility: Utility in itself can be refereed to as the satisfaction derived from the consumption of a particular good or service. However, when we now becomes a marginal utility, it mean we are now paying attention to the level of change in the extra level of satisfaction derived from the particular good and service.

Optimal Consumption: This can be referred to as one of the guiding principle of consumption in an economy, it stipulates that when a consumer maximizes utility or attain maximum satisfaction, the marginal utility per amount spent must be the equal all goods and services in the same class of goods..

In summary it is a state of mind or feeling that people get a certain level of joy utility from consuming goods and service while Marginal utility is the benefit of consuming an extra unit of that product.

Now referring back to the question and answering it,

If Connie is making optimal consumer choices, the ratio of marginal utility to the price should be the same for both goods. Hence, the price of coffee is 3/2 as much and these ratios are equal and the marginal utility of coffee must be = 3/2 as high as that of tea at the quantities she is purchasing them at.

3 0
3 years ago
A nation that has a comparative advantage in producing a good or service compared to
NNADVOKAT [17]

Answer:

Opportunity cost

Explanation:

A country is said to have a comparative advantage in producing a good, if it has a lower opportunity cost of producing that good in comparison to the other country. For instance if the opportunity cost of producing Wheat in U.S is 2. While that in China is 1. It shows that China has a comparative advantage in producing wheat as compared to the U.S.

So a nation that has a comparative advantage in producing a good or service compared to the other nation can produce that good or service with a lower opportunity cost.

Efficiency, Profit and Resource cost are not directly related to comparative advantage. Although efficiency can contribute towards lower opportunity cost but it is not a scale used for international trade.

Thus, lower opportunity cost is the best alternative.

3 0
3 years ago
For each of the following sentences, select the phrase or group of words that best completes the statement. Earnings per share D
raketka [301]

Answer:

Note <em>See complete and organized question as attached as picture below</em>

<em />

1. Dividend yield ratio

Correct phrase: Relationship between dividends and the market price of a company's stock.

2. Dividend payout ratio

Correct phrase: Percentage of earnings paid out as dividends.

3. Return on assets ratio

Correct phrase: Measure of a company's success in earning a return for all the providers of the capital.

4. Return on common stockholders' equity ratio

Correct phrase: Measure of a company's success in earning a return for the common stockholders.

8 0
3 years ago
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