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:
balance sheet is the answer of that question answer
Answer:
sell any quantity it wishes at the prevailing market price
Explanation:
A perfect market for competition is a market which has a high degree of competition.
It has the following features
1. With regard to the market, information is great in this rivalry between producer and customer.
2. Free entrance, and exit
3. Deals with same or homogeneous products
4. The buyers and sellers are more in this market
5 There is no transport cost exist
Plus we know that demand curve for perfectly competitive firm is elastic as the firm is price taker and reflected in a horizontal line
Hence, the last option is correct
Answer:
(A) Klatt should not acquire the shares until he has contacted Westtown's management and encouraged them to publicly announce the merger discussion. Kind might do fraud because he want Klatt to but 10000 for Kind's personal account.
Answer: 1. W: Is it worth doing?,2. R: Is it real, 3. R: Is it real, 4. W: Can we win?,5.W: Can we win?-
Explanation:The R-W-W Framework is used to screen new products. R-W-W stands for:
Is it Real?
Can we Win?
Is it Worth doing? By matching each description to nthe correct R-W-W category, i have that
1) The new product would cost $12.50 to manufacture, and similar products sell for $9.00----- W: Is it worth doing?
2)Research shows that 85% of high school students enjoyed playing the new game.-----R: Is it real
3)The results of the last market survey showed only 35% of consumers were interested in the new product-----.
R: Is it real?
4)A smaller ergonomic mouse was used by 57% of data entry clerks who participated in the survey.
----W: Can we win?-
5)To manufacture the new product, the company may need to hire 10 more assemblers.-----W: Can we win?