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malfutka [58]
3 years ago
9

The UCR Corp expects an earnings of $100,000 every year forever. The company currently has no debt, and its cost of equity is 15

percent. (a) If the corporate tax rate is 40 percent, what is the value of the company
Business
1 answer:
Murrr4er [49]3 years ago
4 0

Answer:

Value of the company = $400,000

Explanation:

The value of a firm is the present value of its stream of net cash flow discounted at the appropriate cost of capital. The appropriate cost of capital here is 15%.

Net cash flow = 100,000 - (40% × 100,000)= 60,000

Value of the company = A/r

A= 60,000, r-discount rate - 15%,

Value of the company = 60,000/0.15= $400,000

Value of the company = $400,000

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Denise Company manufactures three products from a joint process. Joint costs for the year amounted to​ $250,000. The following d
prohojiy [21]

Answer:

Product X is allocated with 87,500 dollar of the joint cost.

Explanation:

We allocate the values considering the weight of their sales value:

Joint cost: 250,000

We add up the sales values and then calcualte how much each product contributes to that.

Then we multiply that weight or percentage of sales revenue by the joint cost to get the allocated on each product.

\left[\begin{array}{cccc}$Product&$Sales&$Weight&$Cost\\X&70000&0.35&87500\\Y&30000&0.15&37500\\V&100000&0.5&125000\\Total&200000&1&250000\\\end{array}\right]

8 0
3 years ago
True or false:
gayaneshka [121]
I believe it’s false
I’m sorry if I’m wrong
4 0
3 years ago
What is an advantage of matrix organization
icang [17]

Answer:

Fewer people, more work. Following the matrix structure, the employees are given more tasks instead of hiring new people. ...

Choose from experts. Following the matrix organizational structure, allows you to choose people for a project from within the organization.

Explanation:

6 0
3 years ago
Cheryl's Cookies has decided to create a charity that ships cookies to soldiers stationed in Syria. The soldiers could request t
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Answer: Option B : Accessible

Explanation: The segment might not be accessible because of the inability to deliver the cookies in war zones as this area cannot accommodate most delivery forms.

7 0
3 years ago
It is to say that Blue Hamster’s net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company’s annual
Elanso [62]

It is <u>correct </u>to say that Blue Hamster’s net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company’s annual contribution to retained earnings, $4,194,250 and $5,121,531, respectively. This is because <u>all of the items</u> reported in the income statement involve payments and receipts of cash.

<u>Explanation:</u>

Inflow of the company is the income of the company that it gets from the sale of the goods and the services that have been produced by the company by using raw material, labor and so on.

Outflow of the company is the expenditures and costs that the company makes on the production of the goods and services that are to be sold by the company to it's clients to earn revenue. The main purpose of the company is to increase it's inflows as much as possible.

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3 years ago
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