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Nataly_w [17]
3 years ago
8

Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital, when they purchased new issues of stock

and allowed management to retain some of the firm's earnings. The firm now has 1,000,000 shares of common stock outstanding, and it sells at a price of $32.00 per share. How much value has O'Brien's management added to stockholder wealth over the years, i.e., what is O'Brien's MVA?
Business
1 answer:
velikii [3]3 years ago
4 0

Answer:

The answer is: O'Brien's MVA is $12,000,000

Explanation:

We first take the total book value of equity $20,000,000

Then e calculate the market value of the company (stock price per share times shares outstanding) = $32 per share x 1,000,000 shares = $32,000,000

The market value added (MVA) is the difference between market value and equity value:

MVA = $32,000,000 - $20,000,000 = $12,000,000

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Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 i
Schach [20]

Answer:

The firm earns revenues of $360,000 per year. To receive a normal profit, the firm described above would have to earn additional revenue of $90,000

Explanation:

As per the information provided in the question, the current profit/loss after deducting all expenditure from income is as follows:

Particular                                     Amount ($)

Revenue                                      360,000

Less: Wages and Salaries          (200,000)

Less: Materials                             (75,000)

Less: New Equipment                  (30,000)

Less: Rented Property                 (20,000)

Less: Interest Costs                      (35,000)

Profit/Loss                                           0

As confirmed from the calculation above currently no profit is being earned even after the owner/manager not receiving income from the firm. Therefore, the firm should generate additional revenue of $90,000 in order to earn normal profit.

8 0
3 years ago
Jenks Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value (L
Neko [114]

Answer:

$365,000

Explanation:

The computation of the inventory reported on the balance sheet is shown below:

<u>Product                  Cost                NRV            Lower cost</u>

A                            $115,000         $125,000    $115,000

B                            $95,000          $75,000     $75,000

C                            $175,000         $180,000   $175,000

Total                                                                  $365,000

7 0
3 years ago
An organization whose duties include consolidating small loads of freight, negotiating shipping rates, and booking space on tran
Nuetrik [128]

Answer:

Freight Forwarder

Explanation:

The Freight Forwarder can be an individual person or a company which organizes the shipments for a person or company to get goods or products transferred from the manufacturer to the customer or the market i.e the final destination of distribution.

Forwarders involves with a carrier or with the number of carriers to transfer the goods.

6 0
3 years ago
In this type of budget, the master budget is based on a single prediction for sales volume, and the budgeted amount for each cos
SOVA2 [1]

Answer:

Fixed budget.

Explanation:

A fixed budget can be regarded as financial plan which is not been modified for any variations that could come up in actual activity. In most times some companies may have experience of substantial variations as regards their expected activity levels within the encompassed period of budget as well as the amounts in that budget. The budget cost allowances in a fixed budget for each cost item cannot be changed as regards the variable items. It should be noted that in Fixed budget the master budget is based on a single prediction for sales volume, and the budgeted amount for each cost essentially assumes that a specific amount of sales will occur.

3 0
3 years ago
You manage the worksheet shown below and it contains information for the company's 1500 employees,
marshall27 [118]

The best way for you to create the list of those who make more than $45000 a year and are full time is by using the filter option.

The filter option would be used to highlight the people that are in full employment. After this you have to use the sort to check the compensation column in order to establish those that make more than 45000.

The filter in a spreadsheet helps to put data in a particular category then arrange them based on the criteria that you selected.

The sorting method helps to arrange data based on ascending order or descending order.

Read more on brainly.com/question/15358155?referrer=searchResults

5 0
2 years ago
Read 2 more answers
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