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ololo11 [35]
2 years ago
5

Assume that market and book values are equal for current assets, current liabilities, and debt and other long-term liabilities.

SIMPLIFIED BALANCE SHEET FOR FEDEX May 30, 2013 (Figures in $ millions) Assets Liabilities and Shareholders’ equity Current assets $ 11,274 Current liabilities $ 5,750 Plant, equipment and other long-term assets 22,293 Debt and other long-term liabilities 10,419 Shareholders’ equity 17,398 Total assets $ 33,567 Total liabilities and equity $ 33,567 Note: Shares of stock outstanding: 316.6 million. Book value of equity (per share): 17,398 / 316.6 = $54.95. The stock price is $103.39.
a.Construct a market-value balance sheet from the above data. (Be sure to list the assets and liabilities in order of their liquidity. Enter your answers in millions rounded to 2 decimal places.)

SIMPLIFIED MARKET VALUE BALANCE SHEET FOR FEDEX
May 30, 2013
(Figures in $ millions)
Assets Liabilities and Shareholders’ equity
(Click to select)Current assetsCurrent liabilitiesDebt and other long-term liabilitiesPlant, equipment and other long-term assetsShareholders’ equity $ (Click to select)Current assetsCurrent liabilitiesDebt and other long-term liabilitiesPlant, equipment and other long-term assetsShareholders’ equity $
Growth opportunities (Click to select)Current assetsCurrent liabilitiesDebt and other long-term liabilitiesPlant, equipment and other long-term assetsShareholders’ equity
(Click to select)Current assetsCurrent liabilitiesDebt and other long-term liabilitiesPlant, equipment and other long-term assetsShareholders’ equity (Click to select)Current assetsCurrent liabilitiesDebt and other long-term liabilitiesPlant, equipment and other long-term assetsShareholders’ equity
Total assets $ Total liabilities and equity $
b.How much extra value shows up on the asset side of the balance sheet? (Enter your answer in millions rounded to 2 decimal places.)

Extra value on the asset side $ million
Business
1 answer:
melomori [17]2 years ago
7 0

Answer:

Market- value Balance sheet

ASSETS

NON-CURRENT ASSETS                                                 $37,628

CURRENT ASSETS                                                           $11,274

TOTAL ASSETS                                                                $48,908

EQUITY AND LIABILITIES          

EQUITY (316.6*$103.39)=32,733.274                             $32,733

LIABILITIES

NON-CURRENT                                                                $10,419

CURRENT LIABILITIES                                                     $5,750

TOTAL EQUITY AND LIABILITIES                                   $48,908

Explanation:

b) Assets are extra by ($37,628.274 - $22,293) =$15335.27

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Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather
Vladimir [108]

Answer:

<u>Opportunity cost </u>

Explanation:

Suppose that a university decides to spend $ 1 milion to upgrade personal computers and scientific equipment for faculty rather than spend $  million to expand parking for students . This example illustrates<em><u> opportunity costs.</u></em>

<em>Opportunity cost refers to the cost shifting one opportunity to another opportunity or availing one opportunity in terms of another.</em>  

Formula of Opportunity cost is :

<u>Opportunity cost</u>    =  Total Revenue - Economic Profit

                                    Or

<u>Opportunity cost </u>  = What one sacrifice / What one gain

In Opportunity cost we chose one thing or option over the cost of another thing or option. Opportunity cost places a important role in economic theory .

As it tell us that people can choose only one thing not the both things at the sane time.

3 0
3 years ago
Predatory pricing refers to a. All of the above are examples of predatory pricing. b. a firm selling certain products together r
mina [271]

Answer:

d. a monopoly firm reducing its price in an attempt to maintain its monopoly.

Explanation:

In a competitive system, a firm practices predatory pricing when it charges prices below its costs in order to eliminate competitors. When the prevailing system is a monopoly, the firm is the only company providing the good and it can practice predatory pricing in the short term to prevent a competitor from entering the market. Thus the firm remains monopolistic.

8 0
3 years ago
We use statistics when making decisions, rather than parameters, because ________________.
natka813 [3]

Statistics are used in place of parameters for making decisions since they are simpler to collect.

<h3>What are the guidelines?</h3>

In general, a parameter is any feature that aids in describing or categorizing a certain system. In other words, a parameter is a component of a system that is crucial or useful for identifying the system or assessing its functionality, status, or other characteristics.

To describe the entire population under study, a parameter is utilized. For instance, we are interested in learning the typical length of a butterfly. This information about the total butterfly population makes it a parameter.

Three different parameter kinds,

  • Value Specifiers.
  • Parameters of Reference.
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To learn more about parameters, refer to:

brainly.com/question/13794992

#SPJ4

4 0
1 year ago
Assume that you would like to purchase 100 shares of preferred stock that pays an annual dividend of $6.00 per share. However, y
butalik [34]

Answer:

$267.1211

Explanation:

return on preference share per unit is $6  , thus at 12% annual rate of return. Initial value of preference shares will be $50 per unit ( $6 divided by 12%).

Total value of preference shares = $50 multiplied by 100 preference shares = $5000

Future value of preference shares = 5000 (1.12)^5  = $8,811.7084

to find the value of money to be deposited to be able to buy the preference shares at the end of 5 yrs.

we work back to get the present value using the mutual fund annual rate

$8811.7084 = pv (1.06)^60  the rate is compounded monthly. Hence we shall compound the return 60 times in 5 years

Bank account money = 8811.7084  divided by 32.9877 = $267.1211

5 0
3 years ago
Sweet Treats common stock is currently priced at $36.72 a share. The company just paid $2.18 per share as its annual dividend. T
Phantasy [73]

Answer:

Cost of equity= 8.0%

Explanation:

<em>Cost of equity can be ascertained using the dividend valuation  model. The model states that the price of a stock is the present value of future dividends discounted at the required rate of return.</em>

Cost of equity (Ke) =( Do( 1+g)/P )  + g

g - 2.2%, P - 36.72, D - 2.18

Ke = (2.18 ×(1+0.022)) /38.72  +  0.022 )  ×  100

= 0.07954 × 100

= 8.0%

 Cost of equity = 8.0%

4 0
3 years ago
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