Answer
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Explanation
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Answer:
a) $14,600.
Explanation:
The computation of the company total assets are shown below:
= Cash balance + supplies balance + equipment balance
where,
Cash balance = investment amount + borrowed amount - paid amount for equipment
= $6,200 + $3,200 - $2,120
= $7,280
And, the other item values would remain the same
Now put these values to the above formula
So, the value would equal to
= $7,280 + $1,120 + $6,200
= $14,600
Answer:
b. all development cost are expensed as incurred
Answer:
the stock value per share is $53
Explanation:
The computation of the stock value per share is shown below:
Value of operations = Free cash flows ÷ ( Capitalization Rate - growth rate )
= $175 Million ÷ ( (10% - 4%)
= $2,917
Now stock value per share is
= $2,917 ÷ 55 million shares
= $53 per share
Hence, the stock value per share is $53