In order to calculate Debtors Collection Period, should I include non current and current trade receivables?

What is my level of education if I just finished 10th grade?

Allushta [10]

11th grade because that's the grade above

5 0

3 years ago

The director of research has asked you to produce a pro forma valuation of a target company using leveraged buyout analysis. A c

statuscvo [17]

6.8 will be the debt-to-EBITDA ratio.

EBITDA* 8.5=Transaction Value

(Transaction value * 0.8) / EBITDA = 6.8

EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's overall financial performance and is used as an alternative to net income in certain circumstances. However, EBITDA can be misleading because it does not reflect the cost of capital investments such as property, plant, and equipment.

This metric also excludes debt-related expenses by adding interest and tax costs to revenues. However, it is a more accurate measure of business performance as it is able to report profit before the effect of accounting and financial deductions.

Learn more about the debt-to-income ratio here: brainly.com/question/24814852

#SPJ4

4 0

2 years ago

North Side Wholesalers has sales of $948,000. The cost of goods sold is equal to 68 percent of sales. The firm has an average in

Masteriza [31]

Answer:

13 days

Explanation:

We are to calculate the days of inventory on hand.

Days of inventory on hand = number of days in a period/ inventory turnover

Inventory turnover = Cost of goods sold / average inventory

Cost of goods sold = 0.68 x $948,000 = $644,640

Inventory turnover = $644,640 / $23,000 = 28.027826

Days of inventory on hand = 365 / 28.027826 = 13.02 days

I hope my answer helps you

5 0

3 years ago

Oval Inc. just paid a dividend equal to $1.50 per share on its common stock, and it expects this dividend to grow by 4 percent p

Rainbow [258]

Answer:

e. 14.60%

Explanation:

The computation of Oval's cost of new common equity is shown below:-

Price of stock = Estimated dividends for next period ÷ (Required rate of return - Growth rate)

Dividend = $1.50 × (1 + 4%)

= $1.56

Price of stock would be the price net of flotation cost

= $16 × (1 - 8%)

= $14.72

Required rate of return

= (1.56 ÷ 14.72) + 0.04

= 14.60%

8 0

3 years ago

Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respe

Lena [83]

Answer:

$856,376.30

Explanation:

What is the terminal, or horizon, value of operations?

2 years, FCF 1 = 80,000, FCFC 2 = 100,000, Growth rate= 5%, WACC = 16%

==> 100,000*(1+0.05)/(0.16-0.05)

==> 100,000*(1.05/0.11)

==> 100,000*(9.545454(

==> 954,545

Calculating the value of Kendra's operations.

Years Cash-flows PVF at 16% Present value

1 800,000 0.86206 68964.80

2 105,000 0.74316 78031.80

2 954,545 0.74316 <u>709379.70</u>

Total value <u>856,376.30</u>

8 0

3 years ago

In order to calculate Debtors Collection Period, should I include non current and current trade receivables?​

In order to calculate Debtors Collection Period, should I include non current and current trade receivables?