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3 years ago

A reversionary interest would be held by a:

1 answer:

8 0

Answer:A reversionary interest is created when a deed provides that the property transfer is “on condition that” or “only for so long as” the property described in the deed is used, or not used, for certain purposes.

Explanation:

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Year 1 2 3 4 5 Free Cash Flow $22 million $24 million $29 million $32 million $35 million XYZ Industries is expected to generate

Elena L [17]

Answer:

The expected current share price is $7.66

Explanation:

According to the given data, we have the following:

FCF1 = $22 million

FCF2 = $24 million

FCF3 = $29 million

FCF4 = $32 million

FCF5 = $35 million

Growth Rate, g = 2%

WACC = 7%

In order to calculate the expected current share price we have to calculate first the following:

First, we have to calculate the FCF6 as follows:

FCF6 = FCF5 * (1 + g)

FCF6 = $35 million * 1.02

FCF6 = $35.70 million

Next, we have to calculate the Horizon Value of Firm as follows:

Horizon Value of Firm = FCF6 / (WACC - g)

Horizon Value of Firm = $35.70 million / (0.07 - 0.02)

Horizon Value of Firm = $714 million

Next, we have to calculate the Current Value of Firm as follows:

20,560,747+20,962,529+23,672,638+24,412,646+24,954,516+509,072,132

Current Value of Firm = $22 million / 1.07 + $24 million / 1.07^2 + $29 million / 1.07^3 + $32 million / 1.07^4 + $35 million / 1.07^5 + $714 million / 1.07^5

Current Value of Firm = $623.63 million

Next, we have to calculate the Value of Equity as follows:

Value of Equity = Current Value of Firm - Value of Debt + Value of Cash

Value of Equity = $623.63 million - $40.00 million + $14.00 million

Value of Equity = $597.63 million

Therefore, the Price per share = Value of Equity / Number of shares outstanding

Price per share = $597.63 million / 78 million

Price per share = $7.66

The expected current share price is $7.66

5 0

3 years ago

Read 2 more answers

Problem 12-04A The income statement of Kingbird, Inc. is presented here. Kingbird, Inc. Income Statement For the Year Ended Nove

barxatty [35]

Answer:

Cash Flow From Operating Activities

Cash Receipt from Customers $7,260,000

Cash Paid to Suppliers and Employees ($6,294,700)

Cash Provided by Operating Activities $965,300

Explanation:

Step 1 : Cash Paid to Suppliers and Employees Calculation

Cost of goods sold $4,987,300

Add Operating expenses $1,120,500

Total $6,107,800

Adjustments :

Depreciation expense $95,300

Decrease in Inventory ($536,700)

Increase in Prepaid Expenses $179,800

Decrease in Accounts Payable $345,700

Decrease in Accrued Expense Payable $105,800

Cash Paid to Suppliers and Employees $6,294,700

Step 2 : Cash Receipt from Customers Calculation

Sales revenue $7,465,900

Less Increase in Accounts receivable ($205,900)

Cash Receipt from Customers $7,260,000

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3 years ago

The term ______ describes circumstances where a country's exports exceed it imports.

Misha Larkins [42]

Trade surplus or positive trade balance.

Both of these terms refer to the situation of higher exports than imports.

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3 years ago

Each of the following would increase the demand for U.S. dollars, shifting the demand curve for dollars to theright, except:

earnstyle [38]

Answer:

<h2>The answer to the given question would be option C. or an increase in the real interest rate on U.S. assets.</h2>

Explanation:

An increase in the real interest rate on US financial assets basically imply a higher financial cost of borrowings of these assets which would consequently reduce the demand for US assets among foreign investors or borrowers.
As the real interest rate on US assets goes up,the foreign investor have to pay more as interest on any borrowing of the US assets in US dollars.Therefore,the periodic interest payments in terms of US dollars also increases for the foreign or international financial investors which will eventually reduce the demand for US dollars in the foreign exchange market for US dollars.
As a result of such occurrence,the demand curve for US dollars would shift leftward or downward thereby reducing the currency value of US dollars relative to other foreign or international currencies.

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3 years ago

Bitcoin fails to satisfy which two of the three functions of money? Question 3 options: A) medium of exchange and unit of accoun

mojhsa [17]

Answer:

The correct answer is letter "D": unit of account and store of value.

Explanation:

Bitcoin is the first decentralized digital currency. It is also referred to as a virtual currency or a crypto-currency. Bitcoins are held in a digital wallet and can be sent over the internet. Bitcoin transactions are authorized using a digital signature. The transactions are verified usually within minutes by a network of miners. Once verified, the transaction is permanently stored on a public ledger known as The BlockChain.

Three are the functions of money: <em>medium of exchange, store of value, </em>and <em>unit of account</em>. In order to boost its use, a few merchants have started to accept Bitcoin as a medium of exchange but it still is not considered a unit of account since most items in the real world are valued in monetary terms. Also, it is not considered a store of value because, unlike money, Bitcoin cannot be saved in bank accounts earning interest. Bitcoins must be sold (at profit) to provide the holder revenues.

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4 years ago