Answer:
$5,697,674
Explanation:
Dividend Valuation method is used to value the operations of a company based on the dividend paid, its growth rate and rate of return/WACC. The price is calculated by calculating present value of future dividend payment.
Free cash flow is the residual cash flow of operation after paying the capital expenditure from net income of the company. It represent the cash from the operations.
Formula to calculate the value of operation
Value of Operations = FCF / ( WACC - growth rate )
Value of Operations = $490,000 / ( 13% - 4.4% )
Value of Operations = $5,697,674
Answer:
<em> $220,000</em>
Explanation:
Given:
Effective Gross Income(EGF) : $396,000
Operating Expenses(OE) : $176,000 ( Including $4,400 reserve for replacements)
To Find Net Operating Income(NOI):
NOI = EGF - OE
NOI = $396,000 - $176,000
NOI = $220,000
So the Net Operating Income is $220,000
Answer:
D. $96,000
Explanation:
We will allocate the cost on maintenance by first stablishing a rate per maintenence hour:
As this is direct method we aren''t doing an allocation to other service department we directly allocate against production department A and B
total hours: 480 + 320 = 800
160,000 total cost /800 hours = 200 per hour
Department B hours: 480
allocate to department B: 480 x 200 = 96,000
Answer:
An example of external failure cost is:
Scrap and rework during production
Explanation:
External failure cost is the concept used in the finance, business, and management sciences to qualify the loss of a business after a product is sold. Examples involve lawsuits, legal fees, returns, etc. Now, the argument behind the answer is that warranty claims on handling are not part of the company, but the carrier and the retailer company. but scrap and rework during production is an external failure cost because after the production and selling scrap and rework during production will remain.
