Answer:
The cost recorded will be $53,400
Explanation:
In this question, we are to give the value of the amount recorded as the cost of the new equipment.
By simply doing some additions, we will be okay.
mathematically, this would be
Cost of equipment recorded = cost of equipment + transportation cost + sales tax + installation cost = 48,00 + 1,200 + 2,500 + 1,700 = $53,400
Producers often pass along price increases to customer.
Answer:
$710.84 million
Explanation:
Net income = $35 million
Depreciation = $20 million
Capital expenditures = $7 million
Tax rate = 21%
D/E ratio = 0.4
Growth rate = 6%
Equity beta = 1.25
So, firm's asset beta = Equity beta/(1 + D/E*(1-T))
= 1.25/(1 + 0.4*(1-0.21))
= 0.94985
So, Free Cash Flow to the Firm= NI + Depreciation - Capital expenditures
= 35 + 20 - 7
= $48 million
Risk free rate Rf = 5%
Market risk premium = 7.5%
So, firm cost of capital using CAPM is Rf + Beta*(MRP)
Kc = 5 + 0.94985*7.5
Kc = 12.1239
So, Firms value using constant dividend growth model:
FV = FCF*(1+g)/(Kc-g)
FV = 48*1.06 / 0.121239-0.06
FV = 50.88 / 0.061239
FV = 830.8430901876255
FV = $830.84 million
Debt = $120 million
Market Value of equity = FV - Debt
Market Value of equity = $830.84 million - $120 million
Market Value of equity = $710.84 million
Overall asset turnover is computed as internet sales divided via common total assets.
Asset turnover is the ratio of overall sales or revenue to average property. This metric facilitates buyers to apprehend how efficaciously groups are using their assets to generate income. traders use the asset turnover ratio to examine similar corporations inside an equal area or organization.
A higher ratio is favorable because it suggests a more green use of belongings. Conversely, a decreased ratio suggests the organization isn't using its belongings as effectively. This is probably because of extra production capability, terrible series strategies, or bad stock control.
The asset turnover ratio is the ratio between the cost of a business enterprise's sales or revenues and the fee of its property. it's far an indicator of the efficiency with which an employer is deploying its assets to provide sales. as a consequence, the asset turnover ratio can be a determinant of an organization's performance.
Learn more about asset turnover here: brainly.com/question/15413308
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