Answer:
The $623,100 is the amount which should be used as the initial cash flow for this project
Explanation:
The computation of the initial cash flow is shown below:
= Estimated cost of a new facility on the site + market value of a lot
= $494,200 + $128,900
= $623,100
The asset value should be recorded in the market value so we took the estimated cost and the market value in the calculation part.
The other cost which is given in the question is irrelevant. Thus, it is not considered in the computation part.
Answer:
c. value of all final goods and services produced within a country in a given period of time.
Explanation:
GDP is the value of all final goods and services produced within a country in a given period of time.
GDP = Consumption + Investment + Government Spending + Net Exports
GNP is the value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time.
The main purpose of price/sales multiple ratio is typically only for the purpose of valuation of firms having no earnings till the date of valuation. Therefore, the given statement holds true.
<h3>What is the significance of Price/Sales ratio?</h3>
Price/Sales ratio can be referred to or considered as a ratio that is used to determine the total sales made by the company without earning any profits over their sales at a given price.
Investors use this ratio in order to valuate a firm based on the sales they have made in multiples, however without earnings, that can prove to derive good investment returns in the future.
Therefore, the aforementioned statement regarding price/sales ratio holds true.
Learn more about price/sales ratio here:
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Answer:
Option D) 1,200 shares held at a cost basis of $37.50 per share
Explanation:
Data provided in the question:
Number of shares of ABC stocks purchased by the customer = 1,000
Price per share of ABC stock = $44
Commission paid = $1.00 per share
Stock dividend declared = 20%
Now,
The Payment of a stock dividend will increase the number of shares held by the investor
also,
each share is theoretically worth less after the stock dividend is paid.
Therefore,
The number of shares customer will have = Shares purchased × (1 + Dividend declared)
= 1000 × ( 1 + 0.20)
= 1200 shares
Also,
Cost basis for the share = Selling price + Commission
= $44 + $1
= $45
Thus,
The adjusted cost basis = $45 ÷ 1.20
= $37.50 per share
Hence,
Option D) 1,200 shares held at a cost basis of $37.50 per share
