Answer:
Yes, Alaska should pay 1 billion new sol for the acquisition.
Maximum price = 1.616 billion new sol.
Explanation:
Asking price by Estoya = 1 billion new sol.
However, estimating the value of Estoya considering the cash flows in years 1 and 2 to Alaska is as follows.
Year 1 cash flow (figures in millions)
- Cash flow (which will grown by 5% yearly) = 500 * 1.05 = 525
- In USD (exchange rate in year 1 = $.29), 525 = 525 * $.29 = $152.25.
Year 2 cash flow (figures in millions)
- Cash flow = 525 * 1.05 = 551.25
- Resale value = 1,200 (i.e 1.2 billion)
- Total year 2 cash flow = 1,751.25
- In USD (exchange rate in year 2 = $.27), 1,751.25 = 1,751.25 * $.27 = $472.84.
Given a discount rate of 18%, the present value of the cash flows
=
= 129.03 + 339.59
= $468.62.
Therefore, the maximum amount Alaska Inc. should pay for the Company is the local currency equivalent of $468.62 in today's price
= 468.62/0.29
= 1.616 billion new sol.
Because this amount (the fair value) is higher that the 1 billion new sol the company intends to pay, Alaska should pay the 1 billion new sol.
The financing option that the sand key development company should use is the equity financing option. The correct option is c.
<h3>What is financing?</h3>
A firm or business gets funded through financing through this technique. On interest rates, this is stated. Banks handle financing; they give businesses funds and charge them an interest in exchange.
Equity financing is when you increase the money of the company by sharing the shares of the company with the shareholders or new investors. The investors use the stake minority.
Thus, the correct option is c, The equity financing option.
To learn more about financing, refer to the link:
#SPJ4
The question is incomplete. Your most probably complete question is given below:
We don't have enough information to answer this.
Sand Key is indifferent between the two options.
The equity financing option.
The debt financing option.
They should abandon plans for expansion.
The answers in the spaces provided in the question above are
the following, 1; 100. The number means that Brianna has scored a total of 1 in
the standard deviation which is above the mean IQ score of one hundred.
Answer: The primary purpose of a mission statement is to state the reason for the existence of the business. The correct answer is D.
Explanation:
A mission statement is an important part of a businesses values. Every company should have a mission statement for their employees and their customers. The mission statement should be positive and set achievable goals for the future of the business. In the statement, a description of the location of the business should be included. The statement can include what types of customers are wanted and needed for the business to thrive.
Answer: True.
Explanation:
Organized crimes are crimes carried out by well ordered groups with the sole aim of carrying out illegal activities.
Organized crimes has been around for a long time from before the Era of sea piracy uptill date.
And although the laws of most countries frown against activities of organized crime groups, the crimes continue because some individuals in the society still demand for the goods/services of organized crime, a very popular example is the demand for sex workers who are gotten from an organized crime which is sex trafficking.