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adell [148]
3 years ago
6

Based on the corporate valuation model, Gay Entertainment's total corporate value is $1,200 million. The company's balance sheet

shows $120 million of notes payable, $300 million of long-term debt, $50 million of preferred stock, $180 million of retained earnings, and $800 million of total common equity. If the company has 30 million shares of stock outstanding, what is the best estimate of its price per share
Business
1 answer:
Nesterboy [21]3 years ago
3 0

Answer:

The best estimate of its price per share is $24.33 per share.

Explanation:

For computing the best estimate price per share, first we have to calculate the market value of equity, than divide by stock outstanding.

In mathematically,

= Market value of equity ÷ Stock outstanding

where,

Market value of equity = Total corporate value - notes payable - long term debt - preferred stock

= $1,200 - $120 - $300 - $50

= $730 million

Now put this value to the above formula which is equals to

= $730 million ÷ 30 million shares outstanding stock

= $24.33 per share

Hence, the best estimate of its price per share is $24.33 per share.

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The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 18,900 Current assets
allsm [11]

Answer:

9.69%

Explanation:

Calculate for the internal growth rate

First step is to calculate the ROA

ROA = $4,819/$38,200

ROA=.1262*100

ROA= 12.62%

Second step is to calculate the plowback ratio b

The plowback ratio, b= 1 – .30

b= .70

Now let calculate the Internal growth rate using this formula

Internal growth rate=(ROA × b)/[1 – (ROA × b)]

Let plug in the formula

Internal growth rate=[.1262(.70)]/[1 – .1262(.70)]

Internal growth rate=.0969*100

Internal growth rate= 9.69%

Therefore the internal growth rate will be 9.69%

3 0
3 years ago
Stephani Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of May. Prior t
VashaNatasha [74]

Answer:

the manufacturing overhead for the month should be overapplied by $16,000

Explanation:

Given that

The debit to the manufacturing overhead is $53,000

And, the credit balance is $69,000

So, it should be overapplied by the

= $53,000 - $69,000

= $16,000

Therefore the manufacturing overhead for the month should be overapplied by $16,000

This is the answer but the same is not provided in the given options

7 0
3 years ago
Of the various business-level strategic alliances, __________ alliances have the most probability of creating sustainable compet
Vikki [24]

Answer:

Of the various business-level strategic alliances, <u>VERTICAL COMPLEMENTARY</u> alliances have the most probability of creating sustainable competitive advantage, and <u>COMPETITION REDUCING</u> have the lowest.

Explanation:

A vertical complementary alliance takes place between a manufacturer and a supplier that come together. This usually happens through a requirements contract where the supplier agrees to only sell its materials, components and parts to the manufacturer and the manufacturer agrees to only purchase the components, materials and parts needed from that specific supplier.

On the other hand, competition reducing alliances are generally horizontal alliances where companies agree to work together in order to reduce uncertainty, instead of focusing on gaining market share.

4 0
3 years ago
I dont know how to turn 4x+4 into factored form
Mariulka [41]
4(x + 1)
Hope I helped!
Let me know if you need anything else!
~ Zoe
4 0
3 years ago
3. How would the length of the shadow at noon compare with the length of the shadow in the late afternoon?
KengaRu [80]

In the morning your shadow will point west and in the afternoon it will point east. If your shadow is long, it is near sunrise or sunset. Your shadow is shortest around noon

8 0
3 years ago
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