Answer:
Value of the company = $124,019.61
Explanation:
<em>The value of then firm is the present value of its expected future cash inflow discounted at its required rate of return. </em>
<em>In this case, the earnings available to ordinary shareholders becomes the annual cash inflow while the appropriate discount rate is the cost of equity</em>.
The absence of debt in the company's capital structure implies that the cost of equity would be the appropriate discount rate.
And the value of the company would be determined as follows
Value of the company = Earnings after tax/Cost of equity
Earnings after tax = EBIT × (1-Tax rate)= 25,300×(1-0.25)=18,975
Cost of equity = 15.3%
Value of the company = 18975
/0.153= 124,019.6078
Value of the company = $124,019.61
Answer:
b. $2,300 gain
Explanation:
The computation of the amount of gain or loss on the sale is shown below:
But before that the net book value is
Net book value of the equipment is
= Cost of an equipment - accumulated depreciation
= $100,700 - $68,800
= $31,900
Now
Gain (Loss) on the sale is
= Sale amount - Net book value of the equipment
= $34,200 - $31,900
= $2,300 gain
Hence, the correct option is b.
Answer:
1. Concept/Idea generation
2. Commercialization
Explanation:
The whole concept of idea generation is basically hinged on identifying and/or spotting a particular problem. The task here is how an apt individual will suggest solutions to the identified problem, while having in mind that people will pay for such. Thus, to be effective at this, individual must operate at an impressive level of product solving skills activities. Problem solving involves combination of critical thinking and evaluation tools and could take considerable timing and resources where necessary.
Commercialization is the procedure an entity undertake to market and/or sell a product to earn a price and ultimately profit. This represents the final phase of a development process. It also involves the combination of critical tools to ensure a successful outing. Various marketing mix /strategies could be adopted here. A critical appraisal could also be noted in a bid to detail the whole performance of the product in subsequent undertakings.
Answer:
1. Using the chain weighted method, and selecting year 1 as a base, what is real GDP in year 2?
2. Using the chain weighted method, and selecting year 2 as a base, what is real GDP in year 2?
Explanation:
When you use the chain weighted method, you must multiply the base year's price times the current quantities to determine real GDP.
Year 1 Year 2
Quantity Price Quantity Price
Bread 30 $10 40 $15
Computers 10 $50 15 $60
real GDP in year 2 using year 1 as base = (15 x $50) + (40 x $10) = $750 + $400 = $1,150
real GDP in year 2 using year 2 as base = (15 x $60) + (40 x $15) = $900 + $600 = $1,500
Human activity can affect the carbon cycle by capturing carbon dioxide and storing it underground rather than permitting it to be released into the atmosphere.