Answer:
$22,546
Explanation:
The preparation of the Cash Flows from Operating Activities -Indirect Method is shown below:
Cash flow from Operating activities
Net loss -$9,473
Add: depreciation $33,350
Less: Increase in Receivables -$179
Add: Decrease in Inventory $661
Less: Increase in Prepaid Expenses -$673
Less: Decrease in Accounts Payable -$2,291
Less: Decrease in Accrued Liabilities -$728
Add: Increase in Income Taxes Payable $1,879
Net Cash flow from Operating activities $22,546
Note payable is considered long term liabilities. Hence, we ignored it
The positive sign shows the inflow of cash while the negative sign shows the outflow of cash and the same is shown above
Answer:
Explanation:
Red bull engaging in sponsorship shows they are utilizing the well packaged Red bull's marketing budget. But there should be some level of caution in either co- sponsoring or being the sole sponsor for certain sports, especially sports with high risk or danger. While sponsoring stunts like Bull stratos is a good way to make high publicity for their brand (Red bull) but if something bad happens in the course of the stunts, the brand could be connected to the tragedy which would be an everlasting bad label on the company. The company might be seen as insensitive for sponsoring such a sport that involves high risk.
Red bull sponsors X-treme sports and as a results of this sponsorship their brand have enjoyed having more time of product exposure and placement because the sponsorship will give the brand more attention with the consumers.
While it is good they go on with their various sponsorships, they must also be careful on some sports or events that involves high risk.
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:
The correct answer is letter "A": The terms of a bond issue to fund a project.
Explanation:
Capital structure is the mixture of a company's debt and equity to fund its long-term operations and growth. Common stock is the most common type of capital for publicly traded companies, which typically forms the majority of a company's stock ownership. Bonds are another firm companies raises funds from under a repayment promissory note. Capital structure helps investors to assess the optimal value of a firm's capital expense.
Answer:
The right answer is (B) Character of the rivalry.
