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Ne4ueva [31]
3 years ago
5

A company has a share price of $24.50 and 118 million shares outstanding. Its book equity is $688 million, its book debt-equity

ratio is 3.2, and it has cash of $890 million.
How much would it cost to take over this business assuming you pay its enterprise value?
Business
1 answer:
Mrac [35]3 years ago
8 0

Answer:

Enterprise value = $ 3,033

Explanation:

The enterprise value is full value of business. It includes total equity and debt. However cash and cash equivalent are not included in it. Detail calculations are given below.

Enterprise Value = Market value of equity/common stock + Total debt- Cash

MV of equity = 24.5 * 118 = $ 2,891

Total Debt    = 688/2*3   = $ 1,032

Cash                                 = ($ 890)

Enterprise value             = $ 3,033  

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ren Pork Company uses the value basis of allocating joint costs in its production of pork products. Relevant information for the
Alex

Answer:

Allocated costs Loin Chop= $5,590

Explanation:

Giving the following information:

Product - Pounds - Price/lb.

Loin chops 3,000lb $ 5.00/lb

Ground 10,000lb $2.00/lb

Ribs 4,000lb $4.75/lb

Bacon 6,000lb $3.50/lb

The total joint cost for the current period was $43,000

First, we need to calculate the weighted average lb participation of Loin Chops:

Total lb= 23,000

Weighted average lb= 3,000/23,000= 0.13

Now, we can allocate the joint costs:

Loin Chop= $43,000*0.13= $5,590

7 0
3 years ago
Evergreen Corporation has two major​ divisions: Agricultural Products and Industrial Products. It provides the following informa
olya-2409 [2.1K]

Answer:

= 12.5%

Explanation:

<em>Profit margin ration is the the percentage of sales that a business earns as profit. In the context of a division, the higher the figure, the better and  the more profitable the operation of the division. The profit margin ratio is computed as follows:</em>

Profit margin ratio =  Net operating profit/ Sales× 100

Industrial profit margin ratio

Net operating margin - 218,000

Net Sales - 1,750,000

Profit margin ratio

= 218,000/1,750,000  × 100

= 12.5%

3 0
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Which of these is not a primary concern of socially responsible consumers?
Klio2033 [76]
C i belive im pretty sure sure.
8 0
3 years ago
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Hayden Company is considering the acquisition of a machine that costs $406,000. The machine is expected to have a useful life of
kow [346]

Answer:

c.4.2 years

Explanation:

The computation of the estimated cash payback period is given below:

As we know that

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Hence, the estimated cash payback period is 4.2 year

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4 0
3 years ago
Does BLM really contend that most police officers are racist?
jeyben [28]

Answer:

no

Explanation:

not all officers are racists but yea just some

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