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dexar [7]
3 years ago
15

A firm has current assets that could be sold for their book value of $10 million. The book value of its fixed assets is $60 mill

ion, but they could be sold for $95 million today. The firm has total debt at a book value of $40 million, but interest rate changes have increased the value of the debt to a current market value of $50 million. This firm's market-to-book ratio is ________.
Business
1 answer:
Elena-2011 [213]3 years ago
7 0

Answer:

Market to book ratio is 1.8333

Explanation:

Given,

Book value of current assets = $10 million

Book value of fixed assets = $60 million

Selling value = $95 million

Firm total debt = $40 million

Debt to current market value = $50 million

So, computing the market values as:

Market value = Book value of current assets + Selling value - Debt to current market value

Market value = $10 million + $95 million - $50 million

Market value = $55 million

Computing book values as:

Book value = Book value of current assets  + Book value of fixed assets - Firm total debt

Book value = $10 million + $60 million - $40 million

Book value = $30 million

Now, computing the market to book ratio as:

Market to book ratio = Market value / Book value

Market to book ratio = $55 million / $30 million

Market to book ratio = 1.8333

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Vlada [557]

Answer:

see below

Explanation:

Simple interest is a method of calculating gains or yields from savings, deposits, or credit. In simple interest, the interest earned is a constant figure throughout the life of an investment or loan. Simple interest is usually expressed as a percentage, called the interest rate. It is calculated by multiplying the interest rate by the principal amount and by the time. The interest rate quoted applies for a year.

Unlike simple interest, interest earned in compound interest increases every year. Compounding interest refers to the practice of adding interest earned to the principal amount. An increase in the principal amount results in an increase in the interest earned. Due to the compounding effect, a compound interest-earning account will yield more interest than a simple interest-earning account.

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3 years ago
8. Wayne is an insurance company's AML compliance officer. He has been asked by FinCEN to provide the agency with a copy of the
allochka39001 [22]

Based on the information given about the insurance company, the thing that Wayne should do is D. Immediately provide a copy of the company's AML policy as requested.

It should be noted that the anti laundering policy helps financial institutions in combatting money laundering.

Since the insurance company's AML compliance officer has been asked by FinCEN to provide the agency with a copy of the company's AML policy, he should immediately provide a copy of the company's AML policy as requested.

Learn more about insurance on:

brainly.com/question/25855858

3 0
2 years ago
Provide 8 factors that impede business ability of Africans
Sloan [31]

The factors that impede business ability of African can be liken to trade barriers experienced in African region.

Many potential entrepreneur have been discouraged from starting their enterprises because of various business impediment.

The factors that impede the business ability includes:

  • Lack of good road route to deliver goods.
  • High tax rate for local produced goods.
  • Very high rate of import duties.
  • Corruptions among officers with key position
  • Lack of support for Small & medium enterprises (SME)
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  • Unfavorable government policy or regulation on business corporation

Read more about this here

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3 0
2 years ago
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance a
Natali5045456 [20]

Answer:

Adjusted Balance      31,671

Explanation:

<em>CASH </em>

Balance                       25,497

Service Charge               -11

Collection in firm behalf 7,000

NSF                           -805

accounting mistake       -10

Adjusted Balance          31,671

<em>BANK </em>

Balance                   26,808

Outstanding Check   -3,269

Deposit in transit       8,132

Adjusted Balance      31,671

The goal of the reconciliation is to make up for the unknow information for each party. The bank and the firm We are goin to make jounral entries for all the infoamrition which is unknow to the firm until the bank statement is received.

8 0
3 years ago
Moates Corporation has provided the following data concerning an investment project that it is considering:
Vlad1618 [11]

Answer:

$144,128

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 = $-250,000

Cash flow each year from year 1 to 4 = $119,000

I = 8%

NPV = $144,143

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

5 0
3 years ago
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