Answer:
The intrinsic value = $469.15
Explanation:
<em>The price earning (P/E) ratio can be used to determine the price of a stock. This is done as follows:</em>
Price = EPS × P/E ratio
It is appropriate to use the industry average price-earning ratio for the purpose of this valuation.
The intrinsic value = 19.75 × $5.50 = $469.15
Answer:
Explanation:
Scholarships and grants are monies that are given to the student for education. You DO NOT have to pay them back.
Loans can also be given for education costs but you DO have to pay them back. So, obviously, you want scholarships and grants before loans.
Answer:
1. $2.5 million
2. $0
Explanation:
1. Since the book value is more than the generated future cash flows so book value cannot be recovered. In this case, the generated future cash flows are ignored
In this scenario, we compare the values between book value and the fair value of machinery, the difference would be the loss on impairment of the asset
In mathematically,
= Book value - fair value
= $6.5 million - $4.0 million
= $2.5 million
2. In this case, the sum of future cash flows is exceeded than the book value. So, no impairment loss would be recognized i.e zero amount
