1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
REY [17]
3 years ago
12

Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. What is the present value of its growth oppo

rtunities (PVGO) if the required return is 12%?
Business
1 answer:
Gnesinka [82]3 years ago
6 0

Answer: $0.25

Explanation:

Fron the question, we are informed that Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. We are further told that the required return is 12%.

The present value of its growth opportunities (PVGO) will be:

= $50 - ($5.97/12%)

= $50 - ($5.97/0.12)

= $50 - $49.75

= $0.25

Therefore, the present value of its growth opportunities (PVGO) if the required return is 12% is $0.25.

You might be interested in
According to surveys in the U.S. and the United Kingdom, what are the most frequently used financial performance measures by mul
I am Lyosha [343]

Answer:

Correct answer is (C)

Explanation:

Budgeted profit vs. actual profit, return on investment, profit

6 0
3 years ago
Belinda’s job at the corporate offices of Mobility Car Rental requires her to analyze large amounts of data in order to identify
wolverine [178]

Answer:

The correct answer is: customer relationship management.

Explanation:

Customer Relationship Management (CRM) is a technique by which companies store customers' information in an attempt to identify their buying patterns and to build long-lasting relationships with them. CRM uses Information Technology (IT) software for such studies. Thanks to this system, businesses can provide consumers with products and services that are most likely to satisfy their needs.

8 0
3 years ago
Suppose the own price elasticity of demand for good X is -3, its income elasticity is -3, its advertising elasticity is 4, and t
WINSTONCH [101]

Answer:i dont know

Explanation:

8 0
2 years ago
Compute the dollar amount of working capital that can be reduced at year-end if the ending heel raw material inventory is cut by
erica [24]

Answer:

Note: The full question is attached as picture below

a.                                               No of units Cost per unit   Total Cost

Beginning Inventory      1,200                     $8            $9,600  

Add Purchase                            35,000                  $8            $280,000  

Inventory available for              36,200                  $8             $289,600  

production

Less Inventory transferred to    33,200                 $8             $265,600  

production  (16,600 Pairs*2 Heels)

Ending Inventory                        3,000                  $8             $24,000

b. Working capital will be reduced by: (3,000*$8)/2 = $12,000

4 0
3 years ago
Wrote off an uncollectible account for $650. Provided $88,000 of services on account. Provided $32,000 of services and collected
Anarel [89]

Answer:

This question is incomplete. Since it is missing most of the information, I looked for a similar question and found this:

2018:

  • Issued $10,000 of common stock for cash.
  • Provided $78,000 of services on account.
  • Provided $36,000 of services and received cash.
  • Collected $69,000 cash from accounts receivable.
  • Paid $38,000 of salaries expense for the year.
  • Adjusted the accounting records to reflect uncollectible accounts expense for the year.
  • Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.
  • Closed the revenue account. Closed the expense account.

2019:

  • Wrote off an uncollectible account for $650.
  • Provided $88,000 of services on account.
  • Provided $32,000 of services and collected cash.
  • Collected $81,000 cash from accounts receivable.
  • Paid $65,000 of salaries expense for the year.
  • Adjusted the accounts to reflect uncollectible accounts expense for the year.
  • Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

<h2>journal entries 2018 </h2>

Issued $10,000 of common stock for cash.

Dr cash 10,000

   Cr common stock 10,000

Provided $78,000 of services on account.

Dr accounts receivable 78,000

    Cr service revenue 78,000

Provided $36,000 of services and received cash.

Dr cash 36,000

    Cr service revenue 36,000

Collected $69,000 cash from accounts receivable.

Dr cash 69,000

    Cr accounts receivable 69,000

Paid $38,000 of salaries expense for the year.

Dr wages expense 38,000

    Cr cash 38,000

Adjusted the accounting records to reflect uncollectible accounts expense for the year.  Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

Dr bad debt expense 450

    Cr accounts receivable 450

Closed the revenue account. Closed the expense account.

Dr service revenue 114,000

    Cr income summary 114,000

Dr income summary 38,450

    Cr wages expense 38,000

    Cr bad debt expense 450

Dr income summary 75,550

    Cr retained earnings 75,550

<h2>income statement 2018</h2>

Service revenue           $114,000

Expenses:

  • Wages $38,000
  • Bad debt $450    <u>($38,450) </u>

Net income                   $75,550

<h2>balance sheet 2018 </h2>

Assets:

Cash $77,000

Accounts receivable $8,550

total assets                                           $85,550

Equity:

Common stock $10,000

Retained earnings $75,550

total equity                                            $85,550

<h2>statement of cash flows 2018</h2>

Cash flows form operating activities:

Net income                                      $75,550

adjustments:

Increase in accounts receivable     <u>($8,550) </u>

net cash from operating activities  $67,000

Cash flow from financing activities:

Common stocks issued                   $10,000

Net cash increase                           $77,000

beginning cash balance                <u>          $0 </u>

Ending cash balance                      $87,000

<h2>journal entries 2019</h2>

Wrote off an uncollectible account for $650.

Dr bad debt expense 650

    Cr accounts receivable 650

Provided $88,000 of services on account.

Dr accounts receivable 88,000

    Cr service revenue 88,000

Provided $32,000 of services and collected cash.

Dr cash 32,000

    Cr service revenue 32,000

Collected $81,000 cash from accounts receivable.

Dr cash 81,000

    Cr accounts receivable 81,000

Paid $65,000 of salaries expense for the year.

Dr wages expense 65,000

    Cr cash 65,000

Adjusted the accounts to reflect uncollectible accounts expense for the year.  Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

Dr bad debt expense 745

    Cr accounts receivable 745

<h2>income statement 2019</h2>

Service revenue             $120,000

Expenses:

  • Wages $65,000
  • Bad debt $1,395    <u>($38,450) </u>

Net income                      $53,605

<h2>balance sheet 2019</h2>

Assets:

Cash $125,000

Accounts receivable $14,155

total assets                                           $139,155

Equity:

Common stock $10,000

Retained earnings $129,155

total equity                                            $139,155

<h2>statement of cash flows 2019</h2>

Cash flows form operating activities:

Net income                                      $53,605

adjustments:

Increase in accounts receivable     <u>($5,605) </u>

net cash from operating activities  $48,000

Net cash increase                           $48,000

beginning cash balance                 <u>$77,000 </u>

Ending cash balance                    $125,000

<h2>net realizable value accounts receivable</h2>

net realizable value of accounts receivable 2018 = $8,550

net realizable value of accounts receivable 2019 = $14,155

4 0
2 years ago
Other questions:
  • What is the top priority of dang udin soto, the street vendor?
    8·2 answers
  • If the selling price is $22 per unit, what is the contribution margin per unit sold? (round your answer to 2 decimal places.)
    5·1 answer
  • _____ refers to the actions of consumers directly involved in obtaining, consuming, and disposing of products, and the decision
    6·1 answer
  • MC Qu. 160 Webster Corporations monthly...Webster Corporation's monthly projected general and administrative expenses include $5
    7·1 answer
  • Glassmaker has pre-merger $5 in debt and $10 in equity. Rate on debt is 11%. The risk free rate is 6%. The tax rate is 40% . The
    10·1 answer
  • Jennifer has offered to sell her laptop computer for $750 to Jack. She tells Jack that the computer is only six months old but,
    11·1 answer
  • Prior to the financial meltdown, bond ratings agencies were accused of having _____ because they were paid by the organizations
    12·1 answer
  • WoodCore Inc. produces an entire line of office furniture at its manufacturing facility in the United States and then ships its
    6·1 answer
  • What type of economy is an economic system in which private businesses can operate freely with minimal state control
    8·2 answers
  • Latham Corporation constructs a new factory building. The materials cost $300,000. Other costs include direct labor of $150,000,
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!