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Naddika [18.5K]
3 years ago
7

IDX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business developme

nt​ strategy, in late 2013 you initiate discussions with​ IDX's founder about the possibility of acquiring the business at the end of 2013. Estimate the value of IDX per share using a discounted FCF approach and the following​ data: bullet ​Debt: $ 40 million bullet Excess​ cash: $ 108 million bullet Shares​ outstanding: 50 million bullet Expected FCF in​ 2014: $ 49 million bullet Expected FCF in​ 2015: $ 51 million bullet Future FCF growth rate beyond​ 2015: 4 % bullet ​Weighted-average cost of​ capital: 9.4 %
Business
1 answer:
dimulka [17.4K]3 years ago
4 0

Answer:

Check the explanation

Explanation:

(Kindly note: all numbers in millions)

Discounted Cash Flow valuation of company's operating assets as of 2013 year end= PV of FCF in Yr 2014+Terminal FCF in Yr 2015*(1+Terminal growth rate)/(WACC-Terminal growth Rate)

=49/1.094+51*1.05/(0.094-0.05)

44.79+44.79/0.044

=1062.69

Firm equity value= Value of net operating assets+Cash-Debt=1062.69+108-40=1130.69

Value of IDX per share=Firm equity value/No of shares outstanding=1130.69/50=22.61

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When reactions to a small scale marketing effort are used to predict reactions in a larger​ area, the testing method​ is:The alt
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Answer:

1. Test market

2. Buzz or Word of Mouth Marketing

Explanation:

1. Test market is made up of a particular group of people who are used in checking feasibility of a product before bringing it out to the larger or general market. They are used to check how the general market would perceive the product once release. It is used in measuring consumer's response to a new product before introducing it to the larger market.

2. Buzz marketing involves or rather refers to the situation whereby a satisfied consumer/customer passes along information pertaining to a particular product to another consumer/customer. It is a situation whereby a person recommends the use of a particular products to another customer. It involves using word of mouth marketing to works in one's favour.

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3 years ago
What is an example of a long term goal if you’re in middle school now
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I would say to try and keep all A's until you are finished with school\

3 0
3 years ago
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Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6;
tresset_1 [31]

Answer:

Contribution per unit of scare resource (in hour) = $24 per hour

Explanation:

The question falls under the limiting factor analysis

<em>When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that </em><em>it maximizes the contribution per unit of the scare resource.</em>

Therefore Santario Company should allocate the machine hours to maximize the contribution per unit of machine hour.

Contribution per unit of scare resource is determine as follows:

Contribution per unit of scare resource for Model K-3

Contribution per unit of Model K-3 = $6

Machine time per unit =  15 minutes

<em>Contribution per unit of scare resource in minutes</em>

=Contribution per unit/Machine time per unit

= 46/15 minutes

= $0.4 per minute

Contribution per unit of scare resource (in hour)

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7 0
3 years ago
The inventory data for an item for November are:
Katen [24]

Answer:

USING LIFO METHOD

Nov 1 Opening inventory 20 [email protected]$19 =   380

Nov 4 Sales                       10 [email protected]$19   = (190)    

Nov 10 Purchases              30 [email protected]$20 = 600  

Nov 17 Sales                       20 [email protected]$20 = (400)

Nov 30 Purchases              10 [email protected]$21  = <u>210</u>

Cost of merchandise sold                            <u> 600  </u>

The correct answer is B  

Explanation:

In LIFO method of inventory valuation, most recent stocks are issued first. For instance, sales of 10 units in November 4 will be issued from the November 1 opening inventory and valued at the price of opening inventory.November 17 sales will be issued from November 10 purchases and valued at the price of November 10 purchases.

8 0
3 years ago
In a Bring Your Own Device (BYOD) policy, the user acceptance component may include separation of private data from business dat
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Answer:

A. True

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When saying data we can be referring to both private information of the owner of the Smartphone as well as information of the organization since the user uses the phone to connect to services provided by it, which refers to the name of BYOD. The “Bring Your Own Device” (BYOD) phenomenon is based on the modality in which members of an organization are authorized to use their own personal mobile devices (smartphones, tablets, notebooks, etc.) in the activities of the organization where they work connected to the organizational network. The use of their devices to perform their work tasks in the organization causes what was a personal device to become part of the organizational network, with the problems that this could lead to.

4 0
3 years ago
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