Answer:
<u>A and B are correct</u>
Explanation :
- The TVM concept is based on the value of money which is today may change with time as a rise or fall in prices thus this explains why the interest rates are paid and calculated on the basis of the present values that may change such as future sum of money of cash flows, can get discontinued at the discounted rates.
- Future values can be ascertained based on the present value of the product/assert. Thus the interest rates and inflation rates change as the risks and the consumer's needs will always be present and have existed earlier.
- It's calculated by the present value and future value of money multiplied by the interest rate and the total number of years. I.e
- FV = PV x [ 1 + (i / n) ] (n x t)
A. falls is the best option
Answer:
The intrinsic value = $469.15
Explanation:
<em>The price earning (P/E) ratio can be used to determine the price of a stock. This is done as follows:</em>
Price = EPS × P/E ratio
It is appropriate to use the industry average price-earning ratio for the purpose of this valuation.
The intrinsic value = 19.75 × $5.50 = $469.15
Answer:
c. Sales budget, budgeted income statement, budgeted balance sheet
Explanation:
First, we calculate the sales for the period. It would also calculatethe cash proceeds from sales, which will be useful for the balance sheet.
With that, we can plug sales revenue into the income statement and calcualte the net income.
And with the income statement, we can solve for retained earnings and build up the balance sheet. Among other data
Doing it in any other order, we are going to leave blanks and need to do the next one to fill them. In the proposed orde,r we do not need information from the subsequent budget to complete the previous one, which is good.
