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Alenkinab [10]
3 years ago
9

Year 1 Year 2 EBITDA $7,650 $9,150 Total value of equity $76,500 $82,500 Total firm value $99,450 $132,000 What is value of the

entity multiple of Company X in Year 1?
Business
1 answer:
Tju [1.3M]3 years ago
5 0

Answer:

$5.59

Explanation:

Calculation to determine the value of the entity multiple of Company X in Year 1

Using this formula

Entity multiple=Market value / EBITDA

Let plug in the formula

Entity multiple=$99,450/$17800

Entity multiple=$5.59

Therefore the value of the entity multiple of Company X in Year 1 will be $5.59

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A merchandising company's budget includes the following data for January: Sales: $400,000; COGS: $270,000; Administrative salari
Maslowich

Answer:

Total general and administrative expenses           $

Administrative salaries                                        1,250

Rent on administrative building                          30,000

Miscellaneous administrative expenses             5,000

Total general and administrative equipment      35,250

Explanation:

The total general and administrative expenses include administrative salaries, rent on administrative building and miscellaneous administrative expenses.

8 0
3 years ago
Upon her grandfather's death, Jordan inherited 10 shares of Universal Corp. stock that had a fair market value of $5,000. Her gr
Nastasia [14]

Answer: Jordan's recognized gain in the year of sale is $2500.

Explanation:

Given that,

Jordan inherited 10 shares of universal corp. stock upon her grandfather's death and have a fair market value of $5000

Jordan's grandfather purchase these shares in 1995 for $2500

After four months of her grandfather's death, Jordan sold all of the shares for $7500

So,

Jordan's recognized gain in the year of sale = the value of sale - the fair market value at the time of her grandfather's death

= $7500 - $5000

= $2500

4 0
3 years ago
You want to be a millionaire when you retire in 35 years. a. How much do you have to save each month if you can earn an annual r
expeople1 [14]

Answer:

Monthly deposit= $164.24

Explanation:

Giving the following information:

Future value= $1,000,000

Interest rate= 0.118/12= 0.00983

Number of periods= 35*12= 420 months

<u>To calculate the monthly deposit, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,000,000*0.00983) / [(1.00983^420) - 1]

A= $164.24

7 0
3 years ago
Use the following information to answer the question. There are three firms in an economy: X, Y, and Z. Firm X buys $200 worth o
Kamila [148]

Answer:

$2,775

Explanation:

The computation of the GDP of the economy is given below:

But before that the total value sold by three firms would be determined

Total amount of goods sold by X:

= X sells to Y + X sells to Z

= $150 + $75

= $225

Total amount of goods sold by Y:

= Y sells to X + Y sells to Z

= $200 + $50

= $250

Total amount of goods sold by Z:

= Z sells to X + Z sells to Y

= $300 + $250

= $550

Now

Amount of goods generated by X

= units of output × cost per unit

= 250 units ×  $4

= $1,000

Value of goods generated by Y

= units of output × cost per unit

= 300 units ×  $6

= $1,800

Value of goods generated by Z

= units of output × cost per unit

= 500 units ×  $2

= $1,000

Now GDP is

= [Goods generated by X - Valued added by X] + [Goods generated by Y - Value added by Y] + [Goods generated by Z - Value added by Z]

= [$1,000 - $225] + [$1,800 - $250] + [$1,000 - $550]

= $775 + $1,550 + $450

= $2,775

5 0
3 years ago
just paid its annual dividend of $1.15 per share. The required return is 12.3 percent and the dividend growth rate is 0.75 perce
IceJOKER [234]

Answer:

P5 = 10.41

Explanation:

To calculate the stock value with dividends for the fifth year the following formula would be used:

P5 = \frac{Div_{0}  * (1 + g)^{6} }{(r-g)}

  • Where:
  1. Div_{0} = The first Dividend Paid.
  2. G = Growth Rate.
  3. R = Required Return.
  • Given Data:

Div_{0} = $1.15

Growth Rate = 12.3%

R = 0.75%

P5 = ?

  • Substituting the values in the formula

P5 = \frac{1.15 * (1 + .0075)^{6} }{(12.3-.0075)} = 10.41

7 0
3 years ago
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