Answer:
C. $43.33
Explanation:
FCF1 = $75.00
Constant growth rate = 5%
WACC = 10%
Total firm value = FCF1/(WACC-g) =$1,500
Value of debt & preferred=$200
Value of equity = $1,300
# of shares = 30
Value per share = equity value /shares =$43.33
Answer:
Estimate Value of a share= $71.81
Explanation:
<em>The value of a share can be determined using the price earning ratio model. According to this model, the price of a share is estimated as the EPS of the company multiplied by a representative P/E ratio.</em>
Value of share = EPS × P/E
The appropriate P/E ratio would be that of a similar operator in the same industry, in this case , Jones Soda.
Hence the estimate value of share =2.04 × 35.2=71.81
Estimate Value of a share= $71.81
Answer:
identify conditions to be explored all the more altogether
Explanation:
Analytical procedures are used in reviews and are generally an important part in comparing data. Analytical procedures include correlations of various monetary and operational data, to check whether authentic connections are proceeding ahead into the period under audit. It also helps to understand the client's business operations in detail, and it also assist in identifying the changes required.
Answer:
22,290 units
Explanation:
Product A sales (S) = 21,900 units
Product A selling price = $11.90
Product A beggining inventory (I)= 3,900
Product A ending inventory (E) = 3,900 x 1.10 = 4,290
Budgeted purchases of product A must account for all of the projected sales and the desired ending inventory, assuming that the company already has a beginning inventory at hand. Budgeted Purchases of product A are given by:
Answer:
D) Sinking fund
Explanation:
A sinking fund is an account established to be used in the settling of debts. The corporate or institution that creates a sinking fund deposits money regularly as a way of saving it for future debt payments. A sinking fund, is in away a savings account that accumulates funds for repaying large and future debts.
Municipal authorities use sinking funds to pay their bond expenses when they mature. The municipal contributes funds in the years leading to the bond's maturity. Sinking funds gives confidence to investors that the municipal will not default on its payments.
