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castortr0y [4]
3 years ago
15

Generally accepted accounting principles require that the inventory of a company be reported at:

Business
1 answer:
Nookie1986 [14]3 years ago
3 0

Answer:

Historical Cost, Market or Fair Value.

Explanation:

Companies are required under GAAP to report their account based on acquisition cost instead of Market or Fair value. This principle is believed to present more reliable information as market value could harbour subjective or biased market values. However, it is also regarded as irrelevant, prompting most firms to report at market value. Under the GAAP, both principles are allowed.

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Golden Eye Co., a hi-tech satellite company, has asked you to value the company for possible cross-listing in the U.S. The compa
EastWind [94]

Answer:

Explanation:

Let's first determine the free cash flow of the firm

Particulars                            Years

                          1                         2                   3

EBIT                  540                   680                750

<u>Tax at 36%    (0.36*540)       (0.36*680)        (0.36*750)    </u>

Less:               345.6                  435.2            480

Net Capital -

Spending            150                   170                 190

<u>Change in NWC    70                    75                  80      </u>

Less:                    125.6              190.2                210

The terminal value at the end of T =(3  years) is:

= \dfrac{Free \ cash \ flow}{unlevered \ cost - expected \ growth  \ rate}

= \dfrac{250}{0.1643-0.04}

= \dfrac{250}{0.1243}

= 2011.26

Finally, the value of the firm can be computed as follows:

Years                  Free Cash Flow        PVIF           PV

1                          125.6                        0.6589        107.88

2                         190.2                        0.7377         140.31

3                          210                           0.6336       133.06

<u>Terminal Value  2011.26                    0.6336        1294.33     </u>

<u>Value of the firm   ⇒                                               $1655.58</u>

5 0
3 years ago
In Step 1 of developing an EFE​ Matrix, how many opportunities and threats should be included in the full and narrow​ lists, res
Svetach [21]

Answer:

Option B. ​100, 20

Explanation:

The full list should not be more than 100 because we would not like to have any opportunity/threat having less than 1% contribution so The sum of percentages should be 100.

At least 20 opportunities and threats should be there in the narrow list.

4 0
3 years ago
The goals scored per game by a soccer team represent the first quartile for all teams in a league. what can you conclude about t
nirvana33 [79]

Actually the quartile represents in what rank or order the team is when all the goals per team is arranged in ascending order. So for example since the team is on the first quartile, so this means it is on the 25% of the ranking. Hence we can say that:

“the team scored fewer goals per game than 75% of the teams in the league”

3 0
3 years ago
First, regardless of the strategy, _____ storage and _____ storage must be secured.
shepuryov [24]

Answer:

The correct answer is offsite and onsite.

Explanation:

When implementing Business Continuity the preservation of company data comes first.

Business Continuity Plan/Strategies are those measures that a company puts in place to ensure that regardless of the threat, and or disruption to the existing model that allows them to provide goods or services, (e.g. tsunamis or earthquakes, riots and civil unrests, compulsory government curfew) they can continue to function, reach their customers and remain operational.

The first rule of Business Continuity Plan is to protect all information assets. Off-site data or information refer to those information and or data that are remotely stored. That is, they are secured far away from the physical location of the business such as a data or server farm, cloud storage etc.

Onsite data storage refers to storing data on the premises or site of the business. Some fo the tools used are Hard Disk Drivers, Solid State Drives, DVDs etc.

Cheers!

3 0
3 years ago
The financial statements of Friendly Fashions include the following selected data (in millions):
Anni [7]

Answer:

Friendly Fashions:

Ratios Calculations in 2018:

1) Return on Equity = Net Income divided by Equity x 100

Return on Equity = $170/$1,780 x 100 = 9%

2) Return on the market value of equity = share price/average shares outstanding = $8/710 x 100 = 1.12%

3) Earnings per share = Net Income divided by average shares outstanding = $170/710 = $0.24

4) Price-earnings ratio = Market value per share/Earnings per share = $8/$0.24 = $33.3

Explanation:

1) Return on Equity: The return on equity is a measure of the financial performance of an entity, which evaluates the effectiveness of management in using assets to create profits.

2) Return on the market value of equity: This measures the profit yield on the stock market capitalization.  It measures the intrinsic value of a stock by comparing the share price to the number of shares outstanding.  It is also called the market capitalization.

3) Earnings per share: This is a measure of a company's profitability.  It can be used as an indicator to pick stock to buy.  To determine the net income used for this calculation, it is necessary to deduct the dividend of preferred stock, where it exists, before arriving at the net income.

4) Price-earnings ratio: This company valuation method measures the share price relative to the earnings.  It is also called the price multiple and earnings multiple.  It shows how much an investor can pay in dollars in order to earn a dollar of earnings.  It also indicates if a stock is overvalued or undervalued.

8 0
3 years ago
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