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tangare [24]
3 years ago
5

The net present value of future growth opportunities (NPVGO) will contribute to an above average P/E multiple when the additiona

l share value created is:
Business
1 answer:
Simora [160]3 years ago
3 0

Complete Question:

The net present value of future growth opportunities (NPVGO)will contribute to an above average P/E multiple when the additional share value created is

A) positive and the return on new investment is lower than the cost of equity capital.

B) positive and the return on new investment is greater than the cost of equity capital.

C) negative and the return on new investment is lower than the cost of equity capital.

D) negative and the return on new investment is greater than the cost of equity capital.

Answer:

The net present value of future growth opportunities (NPVGO)will contribute to an above average P/E multiple when the additional share value created is

B) positive and the return on new investment is greater than the cost of equity capital.

Explanation:

A firm can determine the net present value of growth opportunities (NPVGO) by calculating the net present value of all future cash flows involving projects with growth opportunities.  The NPVGO provides an alternative way of thinking about stock valuations and can be determined by comparing the return on investment with the investment cost.  The NPVGO determines the per-share value of these growth opportunity projects in order to ascertain the firm's actual value.

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Windsor, Inc. uses a periodic inventory system. Details for the inventory account for the month of January 2022 are as follows:
Hoochie [10]

Based on the cost of the inventory to Windsor Inc, and the FIFO method, the gross profit for the month is C. $1,520

<h3>What is Windsor's gross profit?</h3>

FIFO means that the earlier goods are sold first.

210 units were left on hand which means that none of the Purchase on the 28th of January was sold.

The 15th Janaury purchase sold:
= 130 - (210 - 130)

= 50 units

The sales revenue is therefore:

= (260 + 50) x 9

= $2,790

The cost is:

= (260 x 4) + (50 x 4.60)

= $1,270

Gross profit is:

= 2,790 - 1,270

= $1,520

Find out more on FIFO at brainly.com/question/24137318.

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3 0
2 years ago
Financial aid that is given based on a family financial background is called ____ aid.
Likurg_2 [28]
The financial aid that is given based on the financial status and background of the family of a person is termed as Need Based Aid. Need Based Aid and Need based scholarships are offered by a wide range of institutions to help financially weak families and individuals.

Therefore, the correct answer is
Option D) Need Based
8 0
3 years ago
Read 2 more answers
Flint Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017, to expand its production capac
ddd [48]

Answer:

Please see the answers below:

Explanation:

1.

Debit: Equipment         $912,000

Credit: Notes Payable                 $912,000

To record purchase of equipment at zero interest bearing note Central Michigan.

2.

Debit: Notes Payable        $182,400

Debit: Interest Payable      $20,064

Credit: Cash                                     $202,464

To record Cash Payment of 1st year Installment and Interest.

3.

Debit: Notes Payable        $182,400

Debit: Interest Payable      $20,064

Credit: Cash                                     $202,464

To record Cash Payment of 2nd year Installment and Interest.

4.

Debit: Depreciation Expense          $91,200

Credit: Accumulated Depreciation               $91,200

To record Depreciation Expense on Equipment over the life of 10 years with no salvage value. (Straight Line Depreciation is employed).

6 0
2 years ago
Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B wi
n200080 [17]

Answer:

The firm will not sell any bundle, the amount of bundle to be sold will be zero.

Explanation

Solution

Since firm sells at $25 each for coats and pants, then If consumer wants to purchase both Pant and Coat, the customer will have to pay 25 + 25 = $50.

Also, If consumer purchase Pant and Coat as a Bundle then, he will pay 150. From the question stated we can conclude  that  their is a form of interest to pay for Pant and Coat for Both consumers are higher than 25.

However, they will have to pay an amount less for 1 coat and 1 pant if they buy this in a separate way instead of a  Bundle.

We can say, that type of consumers (both) will not buy the pants and coat as a bundle, but will want to buy them separately.

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5 0
3 years ago
Personal Finance<br> What is a motive?
AleksAgata [21]
Motive is the reason behind the demand which in most cases is either money or quality 
8 0
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