Answer:
$3,085,000
Explanation:
FIFO means first in first out. It means it is the first purchased inventory that is the first to be sold.
The costs of goods sold would first be allocated to the beginning inventory = $310,000
The remaining cost of goods sold Je allocated to the inventory made during the year = 210,000 - 25,000 = 185,000
185,000 × ( $3,000,000 / $200,000) = $2,775,000
Total cost of goods sold = $2,775,000 + $310,000 = $3,085,000
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Answer:
The stock market tends to value diversified companies at less than their break-up value.
Explanation:
Conglomerate discount is only applicable to large, highly diversified business entities and it basically arises as a result of business analysts having difficulty finding an appropriate way to value group of businesses with complex financial statements.
Simply stated, the expression "conglomerate discount" means that the stock market tends to value diversified companies at less than their break-up value.
Hence, when a vast array of businesses aren't performing optimally as the overall conglomerate or there are issues with respect to its core values and financial statements, business analyst may have to apply the conglomerate discount concept.
In order to calculate the conglomerate discount, business experts add up various estimations of the intrinsic values associated with the respective subsidiary firms in a conglomerate and lastly, the market capitalization of the conglomerate is subtracted from that sum. Intrinsic value refers to a measure of the underlying value of a firm and its cash inflow.
Also, it's worthy of note that the sum of the various estimations is typically greater than the conglomerate stock values.
Answer:
Which business would you rather work for and why?
Soleproprietorship
Explanation:
Soleproprietorship entails when one solely owns a business makes decision for the company.
The minimum annual interest rate needed to create the perpetual cash flow stream of $10,000 with a present value of $200,000 is <u>5%</u>.
<h3>What is a perpetuity?</h3>
A perpetuity is an annuity that continues for ever. To determine the interest rate, we divide the annuity $10,000 by the present value investment of $200,000 and then multiply by 100.
<h3>Data and Calculations:</h3>
Present value of investment = $200,000
Annuity (yearly cash stream) - $10,000
Interest rate = 5% ($10,000/$200,000 x 100).
Thus, the interest rate needed to create the perpetual cash flow stream of $10,000 with a present value of $200,000 is <u>5%.</u>
Learn more about perpetuity at brainly.com/question/17157614
