1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tangare [24]
3 years ago
14

Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital. The firm now has 1,000,000 shares of co

mmon stock outstanding, and it sells at a price of $39.50 per share. What is O'Brien's MVA
Business
1 answer:
mixer [17]3 years ago
8 0

Options:

A. $18,500,000

B. $19,000,000

C. $19,500,000

D. $20,000,000

E. $20,500,000

Answer: C. $19,500,000.

Explanation:MVA(MARKET VALUE ADDED) is a measurement that is used to describe the difference between the market value to a company and the capital contributed by both the shareholders and the bondholders.

WHEN THE MARKET VALUE ADDED IS HIGH IT SIGNIFIES THAT THE COMPANY IS GENERATING ENOUGH MONEY TO COVER THE COST OF CAPITAL.

MVA= (market value-stockholders contribution).

Market value =$39.5*1000000shares

= $39,500,000

MVA= $39,500,000-$20,000000

MVA=$19,500,000.

You might be interested in
The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below.
Arlecino [84]

Answer:

Date   Accounts Titles & Explanation  Debit  Credit

Dec 31    Rent Expense                          $2,040

               ($6,120 *2/6)

                      Prepaid Rent                       $2,040

Dec 31     Deferred Revenue                 $525

                      Service Revenue                           $525

Dec 31    Salaries Expense                     $700

                      Salaries Payable                           $700

Dec 31     Supplies Expense                  $2,390

                ($3,100 - $710)

                      Supplies                                       $2,390

       

              Demon Deacons Corporation

                 Adjusted Trial balance

                  December 31, 2021

         Accounts             Debit$        Credit$

Cash                               9,100

Account receivable       14,100

Prepaid rent                   4080

Supplies                          710

Deferred revenue                               1,575

Salaries payable                                  700

Common stock                                    11,000

Retain earnings                                   5,100

Service revenue                                 45,245

Salaries expenses          31,200

Rent expenses                2,040

Supplies expenses         <u>2,390</u>          <u>              </u>

Total                                $<u>63,620</u>     $<u>63,620</u>

Prepaid rent = 6,120 - 2,040 =  4080

Supplies = 3100 - 2390 = 710

Deferred revenue = 2,100 - 525 = 1575

8 0
3 years ago
financial calculator Bruno's Lunch Counter is expanding and expects operating cash flows of $23,900 a year for 5 years as a resu
Ann [662]

Answer:

NPV = 138,347.55

Explanation:

<em>Net Present Value (NPV) : This is one of the techniques available to evaluate the feasibility of an investment project. The NPV of a project is the difference between the present value of the cash inflows and the cash outflows of the project.</em>

We sahall compute theNPV of this project by discounting the appropriate cash flows as follows:

<em>Prevent Value of  operating cash flow</em>

PV =A× (1- (1+r)^(-n))/r

A- 23,900, r - 12%, n- 5

PV = $23,900 × (1- (1.12)^(-5))/0.05

=206,769.963

<em>PV of Working Capital recouped</em>

PV = 5600× 1.12^(-5)

    = 3,177.59

NPV = initial cost + working capital + Present Value of working capital recouped + PV of operating cash inflow

NPV = (66,000) + (5600) + 3,177.59 + 206,769.96

NPV = 138,347.55

5 0
2 years ago
Kwan wants to open a new business in his own country, Singapore. He has decided on a form of licensing that will provide him wit
Sidana [21]

Answer:

A

Explanation:

Direct sales

3 0
3 years ago
The management accountant at Technology Innovators determined $500,000 is the organization's earning goal to accommodate the org
Margaret [11]

Question:

Which of the following management responsibilities is the managerial accountant using in this example?

Answer:

Planning, which includes setting goals and objectives for the organization as well as determining how to accomplish those goals.

3 0
3 years ago
Scarcity in economics means that: A) we often do not have sufficient resources to achieve our objectives. B) the wants of people
DanielleElmas [232]

Answer:

A) we often do not have sufficient resources to achieve our objectives

Explanation:

Scarcity is an economic problem that comes with scarce resources and unlimited wants. In this situation people have to decide on how to allocate resources better so as to satisfy their need, which involves opportunity cost.

Scarcity occurs when resources needs to satisfy ends are limited in supply. It is a foundational problem in economics.

5 0
3 years ago
Read 2 more answers
Other questions:
  • What is one way GDP could be measured?
    7·1 answer
  • What is the general tone of Defoe's piece describing labor in the textile-manufacturing village?
    8·1 answer
  • Jameson and Harrison were both eligible for promotion. However, Patrick, their manager,decided to promote Harrison because he ha
    7·1 answer
  • Listed below are the three functions of the management of an organization. 1. Planning 2. Directing 3. Controlling Identify whic
    5·1 answer
  • What is the cost of goods sold given the following information? Beginning Work in Process 125,000 Beginning Finished Goods 78,00
    14·1 answer
  • Which of the following best explains the difference between short-term and long term planning?
    11·1 answer
  • I need help!!!! Someone please lemme know what I need to do!!!!
    14·1 answer
  • Optimization in Daily Life: Think about your favorite activity, hobbies or any kind of activity from your daily life. Find a pro
    6·1 answer
  • Assume that over the past 88 years, u. S. Treasury bills had an average return of 3. 5 percent as compared to 6. 1 percent on lo
    12·1 answer
  • A __________________ often results in an outflow of financial capital leaving the domestic economy and being invested in the glo
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!