Answer:
If you considered that outstanding shares are equal that total shares, then: market capitalization is $1.085 billions; market value added is $477.5 millions and the market-ti-book ratio is 1.78.
Explanation:
To get these numbers we calculate as follow: market capitalization = number of shares multiply by the price per share (75$ x 14.5 million); marked value added = market capitalization - (total assets - liabilities) [1.085 Bn - (1 Bn - 390 m)] ; and market-to-book ratio = market capitalization / book value (1.085bn/610m)
Answer:
She needs $150,000 to fund this perpetuity.
Explanation:
In this question we need to find the present value of this perpetuity. Because this is a growing perpetuity we will need to use the formula of present value of a growing perpetuity.
PV of growing perpetuity = Payment/ R-G
The payment is the current payment the perpetuity will pay which is 6,000, R is the interest rate which is 10% and G is the growth rate of the perpetuity which is 6%. Now we will input these values in the formula in order to find the present value of the perpetuity.
6,000/0.1-0.06
=6,000/0.04
=150,000
Answer:
$6,775
Explanation:
The computation of the depreciation expense using the straight line method is shown below:
Straight-line method:
= (Original cost - residual value) ÷ (useful life)
= ($30,800 - $3,700) ÷ (4 years)
= ($27,100) ÷ (4 years)
= $6,775
In this method, the depreciation is same for all the remaining useful life
Therefore, in the first and second year the same depreciation expense is to be charged i.e $6,775
