Your answer should be 5,293.92
C = $47,000 / 8.878105
C = $5,293.92
Answer:
a. February 15, 20y9, supplies purchased on account
Dr 15-Supplies 2,250
Cr 21-Accounts payable 2,250
b.
Supplies Account N. 15
Date Particulars Journal Debit Credit Balance
ref. Debit Credit
2/11 purchase 1 2,250 2,250
c.
Accounts payable Account N. 21
Date Particulars Journal Debit Credit Balance
ref. Debit Credit
2/11 supplies 1 2,250 2,250
Answer:
$4,303.68
Explanation:
Quarterly payment = $10,000 / 32.835 (PVIFA, 1%, 40 periods) = $304.55
After 6 years, the principal due = $4,483
Present value of an annuity = payment x PVIFA = $304.55 x 14.13126 (PVIFA, 1.5%, 16 periods) = $4,303.68
The difference is not significant since the remaining payments are not many, and the increase in quarterly rate is only 0.5%
Answer:
Answer of each requirement is given seperatly below.
a What is the value of Siebel using the DCF method?
Value under DCF = CF * (1+growth rate)/ (WAAC" -Growth rate)
Putting values (assuming after tax earning is all in cash)
Value of SI = 25 (1+6%)/ 20%-6% = 189 million dollars
"WAAC calculation
Here WAAC is equal to cost of equity (ke) as company is debt free.
so
Ke = risk free rate + beta (risk premium)
= 5 + 2.5 (6) = 20%
b What is the value using the comparable recent transactions method?
Based on recent tansaction the value of siebel incorporated will be calculated as shown below
Value of SI = Profit afte * 10 = 25 * 10 = 250 million dollars
Publicly-traded Rand Technology, a direct competitor of Siebel's sale is taken as bench mark.
c What would be the value of the firm if we combine the results of both methods?
By combining value of both value technique we get 189 + 250 = 439 million dollars.
Answer:
Beranek Corp. should borrow $288,000 to achieve the target debt ratio.
Explanation:
40% of debt-to-asset ratio means that 40% of the assets should be Financed with debt and the remaining with equity. We have $720,000 worth of assets, simply multiply it with 40% and you will get the amount the needs to be borrowed.
If you have any queries about double entries of all this scenario, do leave a comment, I'll be pleased to help you.
Thank you!