To solve this problem, first, we must know the formula to get the current ratio.
Currents Assets
Current Ratio= -------------------------
Current Liabilities
So in this problem the current assets and current liabilities are given which are the following:
CA= $593,000,000
CL= $316,000,000
Let's now solve $593,000,000 / $316,000,000 = 1.88
Answer:
Explanation:
Let's first determine the free cash flow of the firm
Particulars Years
1 2 3
EBIT 540 680 750
<u>Tax at 36% (0.36*540) (0.36*680) (0.36*750) </u>
Less: 345.6 435.2 480
Net Capital -
Spending 150 170 190
<u>Change in NWC 70 75 80 </u>
Less: 125.6 190.2 210
The terminal value at the end of T =(3 years) is:



= 2011.26
Finally, the value of the firm can be computed as follows:
Years Free Cash Flow PVIF PV
1 125.6 0.6589 107.88
2 190.2 0.7377 140.31
3 210 0.6336 133.06
<u>Terminal Value 2011.26 0.6336 1294.33 </u>
<u>Value of the firm ⇒ $1655.58</u>
Answer:
I think ur answers are A, B, and C.
Explanation:
Hope this helps!
Answer:
The correct answer is letter "D": All of the above.
Explanation:
Accounting is the activity by which the economic transactions of a company are registered in ledgers that together form a group where information is recorded to be summarized at the end of an accounting period in Financial Statements. That report is useful for top managers since they can make decisions about what the firm should implement or replace to maximize the firm's resource allocation and profits.
Answer:
b its b because it says he works hard and he is willing to get a good salary