M9ney spent on household expenses
Answer:
The value per share of common stock today is $23.94
Explanation:
To calculate the worth of the stock today, we first need to calculate the value of firm using FCF and then calculate the value of equity by deducting the market value of debt and preferred stock from the value of firm. Then we will divide the value of equity by the number of common stock shares.
Value of firm will be calculated using the discounted cash flows model approach. The value of firm will be,
Value of firm = 780000 * (1+0.1) / (1+0.13) + 780000 * (1+0.1) * (1+0.08) / (1+0.13)^2 + 780000 *(1+0.1)*(1+0.08)*(1+0.07) / (1+0.13)^3 +
[ 780000 *(1+0.1) *( 1+0.08) *(1+0.07) *(1+0.06)) / (0.13 - 0.06)] / (1+0.13)^3
Value of firm = $12,577,754.16
Value of equity = $12,577,754.16 - (2000000 + 1000000) = $9,577,754.159
Value per share = $9,577,754.159 / 400000
Value per share = $23.944 rounded off to $23.94
<span>This best reflects the broader regulatory environment in which the firm operates. Changes in this environment will undoubtedly have effects on the firms future product offerings and bottom line.</span>
Answer:
- The journal to record the write-off is:
Debit Allowance for doubtful accounts $6,400
Credit Accounts receivable $6,400
- Cash realizable value of the accounts receivable (1) before the write-off is $670,300 (2) after the write-off is $670,300.
Explanation:
- The write-off would impact the allowance for doubtful accounts and the accounts receivable since Bramble Corp. uses the allowance method. See the journals as recorded above.
- The balance in the allowance for doubtful accounts would have reduced by $6,400 upon the write-off, so did the balance in the accounts receivable, so the effect of the write-off evens out. That led to the cash realizable value of $670,300.
Answer:
the experience curve
Explanation:
The experience curve refers to a company having lower production costs due to increasing experience of the manufacturing process.
This concept applies to most activities in life, do you remember "practice makes perfect", well practice is equal to experience. For example the first time you drove a car, it probably took you a long time to go from your point of origin to your destination. Your driving inexperience increased the costs of driving from one place to another (more time and fuel spent). But after a while, when driving was something normal you are able to drive the same distance at a lower cost (less time and fuel).
Imagine for a car company that is trying out a new model. The first units are usually assembled with several flaws that must be corrected and are used to research possible design or equipment flaws. Those failures are corrected as the workers acquire more experience.
