Answer:
A) total debt = $2,230,000 and it represents 175,000 - 125,000 = 50,000 outstanding shares
price per share = $2,230,000 / 50,000 = $44.60 per share
B) enterprise value = 175,000 x $44.60 = $7,805,000
According to M&M proposition I, the enterprise value is the same with or without any outstanding debt. So the company's value is the same for both alternatives.
Answer:
International Forces
Explanation:
These are international forces which are part of the organization environment in which the organization grows. These rapidly the companies the way it trades in the national and international environment. What do you think if till today a company is still manufacturing ambassador car with the same old technology, will you buy? Of course not because its speed is below 72mph and that it is very uncomfortable and also that young generation don't like it. Furthermore these are the things which are present in the organization environment and need to be tackled by the company by enhancement in its processes and adopting to change. In cold wear dresses that keeps you body temperature in control.
Answer: Cost Approach
Explanation:
The best method Vincent should use for valuation is the cost approach.
The cost approach is a method of worth estimation that considers the cost of building an already existing structure: checking the value of the land used for building, the cost of construction and subtracting the devaluation overtime.
Answer:
tspecialize in being a surgeon because its opportunity cost is lower
Explanation:
A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
What the surgeon would give up to pratice as a surgeon would be lower compared than if he decided to specialise in cleaning pools
thus he should specialize in being a surgeon because its opportunity cost is lower
When facing a shortage you should expect .......
