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Vesnalui [34]
2 years ago
12

The explicit forecast period must be long enough for the company to reach a steady state the point at which we calculate the con

tinuing value. Which of the following is NOT a desirable property of that steady state? a) The growth rate rises above the required return on capital. b) The company earns a constant rate of return on existing capital c) The company earns a constant rate of return on new capital invested. d) The company reinvests a constant proportion of its operating profits into the business each year. e) The company expects a constant weighted average cost of capital.
Business
1 answer:
Mamont248 [21]2 years ago
8 0

Answer: E) The company expects a constant weighted average cost of capital.

Explanation: The explicit forecast period in most organisations are usually made between five to about fifteen years,this is to ensure that enough timeline is given to effectively capture all the necessary information to do proper forecast.

The only option that is not a desirable feature of the steady state is that. The company expects a constant weighted average cost of capital. All other options are desirable feature because they have positive impact on the business and will make a good forcast.

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Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000. 11) The firm has 55,000 shares of stock
vovikov84 [41]

Answer:

A) $474,000

Explanation:

Since Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000, it means that equity should be $131,000.

The current price of Balsco's stock is $11 per share and total shares outstanding are 55,000, which results in a total market value of $605,000. If you subtract total equity from the total market value = $605,000 - $131,000 = $474,000

6 0
3 years ago
Which of the following is not a type of savings account? A. Certificate of savings B. Basic savings C. Savings bond D. Money mar
Pepsi [2]
A. certificate of savings
4 0
2 years ago
Suppose the demand function​ (D) for golf clubs​ is: Qequals150minus1.00​P, where P is the price paid by consumers in dollars pe
nadya68 [22]

Answer:

P = $75 per club

n= 75,000 clubs

Explanation:

The demand and supply functions are:

(D): Q=150-1.00P\\(S): Q=1.00P\\

The equilibrium price is the price that yields a quantity demanded equal to the quantity supplied:

150-1.00P=1.00P\\P=\frac{150}{2}\\P=\$75

The number of units sold at that price is:

n=1,000*(1.00*75)\\n=75,000\ units

8 0
2 years ago
Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the followin
borishaifa [10]

Answer:

1. a. A company records a loss of $70,000 on the sale of its outdated inventory. OPERATING ACTIVITY.

Operating activities have to do with the day to day operations of the business.

b. D and W Co. sells its last season's inventory to a discount store. OPERATING ACTIVITY.

This is also a day-to-day operation of the business so it falls under operating activities.

c. DigiIink Printing co. buys new machinery to ramp up its production capacity.  INVESTING ACTIVITY.

Investing activities have to do with the purchase and sale of capital assets such as financial assets in other companies or fixed assets. The machinery purchased here is a fixed asset so this will count as an investing activity.

d. Yum Brands distributes dividends to its common stockholders for the first. FINANCING ACTIVITY.

Financing activities have to do with the long term debt and equity of a company and this includes dividends so this falls under her.

2. Cashflow due to financing activities:

Cash Balance second year =  Cash Balance first year + Cash Flows From Operating Activities + Cash Flows From Investing Activities + Cash Flows From Financing Activities

280 = 180 + 1,053 - 576 + Financing activities

280 = 657 + Financing activities

Financing cashflow = 280 - 657

= -$377 million

6 0
2 years ago
Ralph’s Hardware updated its accounting system and agreed to purchase a computer system from a manufacturer, Bits and Bytes (BB)
Andrej [43]
Given:
<span>Fact 1: During contract negotiations, BB’s sales representative promised that the system was “A-1” and “perfect.”
</span><span>Fact 2: The written contract, which the parties later signed, disclaimed all warranties, express and implied. 
</span><span>Fact 3: After installation the computer produced only random numbers and letters, rather than the desired accounting information

The express warranty is given in Fact 1 where the Sales Rep promised that the system was "A-1" and "perfect". There is a breach in express warranty here IF the written contract also expresses the same promises. 

However, the written contract </span>disclaimed all warranties, express and implied. AND BOTH PARTIES SIGNED THIS CONTRACT. It implies that the buyer has read through the contract and has agreed with what is written in the contract. Thus, they can't file a suit against BB for breaching an express warranty since the written and signed contract has already disclaimed all warranties. 

4 0
3 years ago
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