Explanation:
pause and take a deep breath
The Initial value of debt is $111.11 million.
Value of unlevered equity = ($100 million+ $150 million + $191 million)/3 / 1.05
Value of unlevered equity = $147 miliion / 1.05
Value of unlevered equity = $140 million.
Since the corporation have has zero-coupon debt with a $125 million face value, this means If the firm has a value of $100 million, all of it is from the debt value,
Initial value of debt = ($100 million + $125 million + $125 million)/3 / 1.05
Initial value of debt = $111.11 million.
The Initial value of equity = Value of unlevered equity - Initial value of debt
The Initial value of equity = $140 million - $111.11 million
The Initial value of equity = $29 million
Hence, the Initial value of debt is $111.11 million.
Read more about Debt:
<em>brainly.com/question/11556132</em>
Answer:
The correct answer is letter "C": When both the fair value of a reporting unit and its associated implied goodwill fall below their respective carrying values.
Explanation:
Impairment Loss is the decrease in an asset's net carrying value that exceeds the future undisclosed cash flow it should generate. The net carrying value is an asset's acquisition cost minus depreciation. Impairment occurs when a company sells or abandons an asset that is no longer beneficial.
Thus, <em>a goodwill impairment loss is recognized when the goodwill's net carrying value is below its fair value and the expected cash flow it was to generate.</em>
<span>time
Time estimations is used for grouping occasions, to look at the span of occasions or the interims amongst them, and to evaluate rates of progress of amounts in material reality or in the cognisant experience. Time is regularly alluded to as a fourth measurement, alongside three spatial measurements.</span>
Answer:
Total manufacturing cost= $23,730
Explanation:
Giving the following information:
The company allocates manufacturing overhead based on machine hours.
Job 798:
Direct materials used $ 4,900
Direct labor hours worked 330
Machine hours used 425
Direct labor rate per hour $ 21
Predetermined overhead rate based on machine hours $ 28
Total manufacturing cost= direct material + direct labor + MOH
Total manufacturing cost= 4900 + 330*21 + 425*28= $23,730
