Ask question

Ask question

All categories

3 years ago

9

The 2017 balance sheet of DG Inc. showed LT debt of $2.0 million, the 2018 balance sheet showed LT debt of $2.3 million. The 201

8 income statement showed interest expense of $200,000. What did the firm’s financing section of the cashflow statement show during 2018?

1 answer:

nexus9112 [7]3 years ago

7 0

Answer: idk

Explanation:

You might be interested in

A dealer forecasts that the discount rate on a 60-day bill will be 5.10%. The current discount rate on a 90-day bill is 5.30%. W

patriot [66]

Answer:

The maximum rate is 5.65%.

Explanation:

The break-even 30-day repo rate is the rate at which an investor can make zero profit by carrying the following described trading:

Initially raise 30-day repo at x rate; invest in 90-day bill at 5.30%;

As the 30-day repo is matured, raise fund from 60-day bill at 5.10% to repay the 30-day repo;

Then as the 60-day bill matures, use the proceed from 90-day bill to repay the amount.

In other word, we have the below calculation to illustrate the trading:

Amount repay to 02 fund raising ( through 30-day repo and 60-day bill) = Amount receipt from 90-day bill investment

[1 + x*30/365] x [ 1 + 5.1% *60/365 ] = 1 + 5.30% * 90/365

<=> 1 + x*30/365 = 1.004646 <=> x = 5.65%.

4 0

3 years ago

Given the following:A firms projected free cash flows of2021 $20 million2022 $30 million2023 $50 millionAfter 2023, the growth r

kow [346]

Answer:

a) $1,300 million

b) $1,115.91 million

c) $112.39

Explanation:

To find horizon value, value of operations, and the stock price we need to go through calculations using appropriate formulas.

DATA

Free CashFlow, 2021 = $20 million

Free CashFlow,, 2022 = $30 million

Free CashFlow,, 2023 = $50 million

Growth Rate = 4%

Cost of Capital = 8%

Value of Long-term Debt = 12 million

Value of marketable securities = $20 million

outstanding shares = 10 million

Working

Free CashFlow,, 2024 = Free CashFlow,, 2023 * (1 + Growth Rate)

Free CashFlow,, 2024 = $50 million * 1.04

Free CashFlow,, 2024 = $52 million

Horizon Value

Horizon Value = Free CashFlow, 2024 / (Cost of Capital - Growth Rate)

Horizon Value = $52 million / (0.08 - 0.04)

Horizon Value = $52 million / 0.04

Horizon Value = $1,300 million

Value of operation

Value of Operations = $20 million / 1.08 + $30 million / 1.08^2 + $50 million / 1.08^3 + $1,300 million / 1.08^3

Value of Operations = $1,115.91 million

Stock price

To find the price per share we need to find the value of equity first

Value of Equity = Value of Operations - Value of Long-term Debt + Value of Marketable Securities

Value of Equity = $1,115.91 million - $12.00 million + $20.00 million

Value of Equity = $1,123.91 million

Price per share = Value of Equity / Number of Shares

Price per share = $1,123.91 million / 10 million

Price per share = $112.39

5 0

3 years ago

What is the main difference between the equity and exchange philosophies of compensation?

kykrilka [37]

The equality pilosophy base on available budget, the exchange pilosophy is based on profit margins.

The equality pilosophy is based on fairness, the exchange pilosophy is based on employee value

3 0

3 years ago

A. If a wage of $10.25 were to be imposed on this market, such that the market was not longer strictly competitive, what would b

enot [183]

Solution :

Given the wage = $ 10.25 that is to be imposed to the market.

Given equation :

$L_D$ = 500 – 45W and $L_S$ = -200 + 25W

If the wage of $10.25 is to be imposed to the market, the value of the labor supply can be found by putting the value of the wage in the labor supply equation.

At W = 10.25

Putting this value in the above equation, the labor supply would be

$L_S$ = -200 + 25W

$L_S$ = -200 + 25(10.25)

= 56.25

When W = 10.25, the value for the labor demand can be found by :

$L_D$ = 500 – 45W

$L_D$ = 500 – 45(10.25)

$L_D$ = 500 – 461.25

$L_D$ = 38.75

Therefore, the labor demand and the labor supply model is

$L_D$ = 400 - 45 x 10.25

$L_S$ = -200 + 25 x 10.25

6 0

2 years ago

Andy worked weekends for a month to complete a difficult project. he hoped that he would receive a raise if he successfully comp

bekas [8.4K]

<span>Andy’s motivation for working so hard is most likely the extrinsic motivation of a raise in his salary (money). </span><span>

Extrinsic motivation refers to the phenomenon when behavior and actions are motivated by external factors, such as rewards, fame or praise rather than intrinsic factors which lie within an individual (such as: improving one’s skills and work ethic or genuine interest in the task or project at hand).

In Andy’s case, where he is working so hard in hopes for a raise, he is externally motivated rather than internally motivated since he hopes to be monetarily rewarded </span>(extrinsic factor)for his hard work.

7 0

3 years ago