The main disadvantage of the valuation method is that the terminal value tends to dominate the total value in many cases.
In a free cash flow valuation, the intrinsic value equals present value of its free cash flow and thus, the net cash flow is left over for distribution to stockholders and debt-holders in each period.
- So, the disadvantage of the free cash flow valuation method is that the terminal value tends to dominate the total value in many cases.
Hence, the Option B is correct.
Read more about this here
<em>brainly.com/question/22593826</em>
Answer: E) May depend on some future event occurring. It is not a characteristic of known liabilities.
Explanation: Unknown or uncertain liabilities are those whose existence depends on the occurrence of a future event.
Known liabilities <u>are definitely determinable and measurable.</u>
<u />
Answer:
"B"
Explanation:
Expenses are recognized under the accrual accounting principle.
Before expenses can be recognized under accrual method , it must be matched to a particular revenue.This means that expenses are recognized in the period that the expense was able to generate a revenue. In other words , it in recorded in the period in which it was sold and not the period it was bought.
This is done to improve the quality , accuracy of financial statement to give a true representation of an organization.
The type of accounting information intended to satisfy the needs of external users of accounting information is the Financial accounting.
<h3>Financial accounting</h3>
Financial accounting is the field of accounting concerned with the summary, and reporting of transactions related to a business.
In comparison with other fields, Managerial accounting includes accounting of cost, and intended for the use of internal users of the business.
Tax accounting is specifically intended for tax.
Therefore, it is financial accounting that is intended to satisfy needs of external users in a business.
Read more about<em> accounting</em> here:
brainly.com/question/24357323
Answer and Explanation:
a)
If you charge $40 for X then everyone will buy as everyone is willing to pay atleast $40. this means all three groups buy that is 3*1000 buyers.So profit from X = 3000*40= $120,000
And since everyone is willing to willing to pay atleast $60 for Y again all three groups will buy so profit from Y =3000*60=$180,000
profits=$300,000
b)
If you charge $90 and $160 for X and Y respectively you will have only 1000 buyers for each product as others are unwilling to pay this much.
So profits = 1000*90 + 1000*160=$250,000
c)
for a bundle of X and Y buyers are willing to pay a total of $150, $210 and $200 across the three categories.
So everyone will buy a bundle of 1 X and 1 Y.
profits = 150*3000= $450,000
d)
If you charge $210 only the second will buy as they are willing to pay that much so profits =1000*210=$210,000
Also by selling X at $90 group 1 will buy X; profits=1000*90=$90,000
and by selling Y at $160 group 3 will buy Y; profits=1000*160=$160,000
total profits =$460,000
