Answer:
$71.80
Explanation:
First, calculate the present value (PV) of each year's dividend at 11% required return;
PV(of D1) = 1.65 / (1.11) = 1.4865
PV(of D2) = 1.97 / (1.11²) = 1.5969
PV(of D3) = 2.54 / (1.11³) = 1.8572
Find D4 = 2.54(1+0.08) = 2.7432
Next find Present value PV of terminal cashflows
PV(of D4 onwards) = 
Add the PVs to find the current value of the stock today;
= 1.4865 + 1.5969 + 1.8572 + 66.8601
= 71.8007
Therefore, it is worth $71.80
Answer:
No information given regarding depreciation method Therefore, it is assume P.T Scope Company will use the Straight line Depreciation Method in order to get book value on Dec 31, 2012 and Book value computer system is $1080.
Explanation:
Using Straight line depreciation method the value of Computer system at Dec 31, 2012 is $1080
Depreciation = (cost of asset - Salvage value) / Useful life of asset
Note: In straight line depreciation method the depreciation expense remain constant as it based on the original cost of assets.
Depreciation expense on Dec 31, 2011 = ($3240 - 0 ) / 3 = $1080
Book value on Dec 31, 2011 = $3240 - $1080 = $2160
Depreciation expense on Dec 31, 2012 = ($3240 - 0 ) / 3 = $1080
Book value on Dec 31, 2012 = $2160 - $1080 = $1080
Straight line depreciation method calculate book value based on the original cost and book value is calculated using Year starting value minus Depreciation expense. Hence, Book value reduce as asset continue to use in business until it reaches to zero or salvage value.
Answer:
Financial accounting refer to the financial statement while, managerial is more focus into internal reports
In details, the most difference are as follows:
Aggregation.
Financing reports on the complete firm. While Managerial; at product, division or customer level.
Proven information.
Financing require certain criteria to ensure precision. It need to prove correct to third parties. While Managerial uses budget, forecast and estimated values.
Reporting focus.
Financial accounting is oriented toward outside
Managerial accounting analysis stays within a company.
Legislation:
Financial accounting faces the GAAP, IFRS and heavy legislation.
Managerial accounting doesn't
Time period.
Financial accounting has a historical orientation their reports are resumes of past transactions and operations.
Managerial accounting has a future orientation.
Timing.
Financial Statement are done at end of an accounting period.
Managerial accounting issues on demand of the board or supervisor.
Answer:
c. The end-of-project recovery of any working capital required to operate the project.
Explanation:
In the Process of Computing Net present value of Project , we need to to consider all the cash in flows. To Operate the Project we need an amount in excess the amount invested in the Project assets, that amount is called Working capital. This amount rotate throught life of the Project and the project relief that working capital on the end of the Project. But in calculating Present value of cash we also need to calculate the Present value of working capital that recovered at the end of the porject by Multiplying with Present value factor at Required rate.
Smashburger Restaurant Concept is under the stage of GROWTH in product life cycle. They already have 370 corporate and franchise outlet all over the world which operates in 9 different countries. It is the stage wherein they are still expanding and the income is still growing.
