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Bond [772]
3 years ago
9

Which of the following methods of project analysis is defined as computing the value of a project based on the present value of

the project based on the present value of the project's anticipated cash flows?
a. constant dividend growth model
b. discounted cash flow valuation
c. average accounting return
d. expected earnings model
e. internal rate of return
Business
1 answer:
Anna35 [415]3 years ago
7 0

Answer: discounted cash flow valuation

Explanation:

The discounted cash flow valuation is a method of project analysis that is defined as computing the value of a project based on the present value of the project based on the present value of the project's anticipated cash flows.

Discounted cash flow is used to determine an investment's value based on the future cash flows that the investment will bring.

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Based on the corporate valuation model, the total corporate value of Chen Lin Inc. is $500 million. Its balance sheet shows $110
solmaris [256]

Answer:

The best estimate of its stock price per share is $11.20

Explanation:

To compute stock price per share, the equation is shown below:

= Total number of equity ÷ Outstanding number of shares

where,

Total number of equity = Total corporate value - Notes payable - long term debt - preferred stock

= $500 - $110 - $90 - $20

= $280 million

And , outstanding number of shares is 25 million shares

Now, apply the above equation

So, stock price per share = $280 million ÷ 25 million shares = $11.20

Other accounts like retained earnings, total common equity is irrelevant

Hence, the best estimate of its stock price per share is $11.20

6 0
3 years ago
Scott Rolen, major league third baseman, agrees to defer $5 million from his salary this year for 10 years at 7 percent compound
iVinArrow [24]

Answer:

What will be the amount of this annuity payment?

$711.888

Explanation:

N Monthly principal interest Net value

                           5.000.000

1 711.888 361.888 350.000 4.638.112

2 711.888 387.220 324.668 4.250.893

3 711.888 414.325 297.562 3.836.568

4 711.888 443.328 268.560 3.393.240

5 711.888 474.361 237.527 2.918.879

6 711.888 507.566 204.322 2.411.313

7 711.888 543.096 168.792 1.868.218

8 711.888 581.112 130.775 1.287.106

9 711.888 621.790 90.097 665.315

10 711.888 665.315 46.572 (0)

7 0
3 years ago
Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods
adell [148]

Answer:

Direct material price variance= $12,500 unfavorable

Explanation:

Giving the following formula:

The standard price per pound is $2.00.

The actual quantity of materials purchased and used in production is 50,000 pounds.

The actual purchase price per pound of materials was $2.25.

<u>To calculate the direct material price (spending) variance, we need to use the following formula:</u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2 - 2.25)*50,000

Direct material price variance= $12,500 unfavorable

6 0
3 years ago
Henry wants to obtain an entry-level accounting position at a major accounting firm. Which educational degree will assist him in
PilotLPTM [1.2K]

Answer:

C. accounting specialization certificate

Explanation:

entry level position start with a short certificate in accounting

6 0
2 years ago
Read 2 more answers
Refer to the payoff matrix. bob's burgers and sam's sandwiches are competing restaurants in a small town. both are considering a
tamaranim1 [39]

Answer:

the correct answer is the option D: neither firm has a dominant strategy

Explanation:

To begin with, if both firms decides to add pizza to their menu then they both will be competing with that new item in the market and therefore that none of them will be dominant due to the fact that both are now producing and selling the good. Moreover, it is not a nash equilibrium due to the fact that it is not stated if the players know the other one strategy and even though that the best strategy to take in order to establish one's dominance is to add pizza to the menu, what happens here is that both take that strategy making it in a situation where both tried their best to improve their situation and ended up using the same strategy.

3 0
3 years ago
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