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Simora [160]
2 years ago
10

A firm has 4,250 shares of stock outstanding with a market value of $16.65 a share, $64,800 of long-term debt with an interest r

ate of 7.5 percent, $21,900 of short-term debt, cash on hand of $5,200, sales of $213,000, costs of $126,200, and depreciation of $13,400. The tax rate is 35 percent. What is the enterprise value multiple
Business
1 answer:
liraira [26]2 years ago
6 0

Answer: 1.50

Explanation:

Baeed on the information given in the question, the enterprise value multiple would be calculated as:

= [(4,250 × 16.65) + 64,800 - 5,200] / (213,000 - 126,200)

= 130,362.5 / 86,800

= 1.50 times

You might be interested in
As the level of activity increases, how will a mixed cost in total and per unit behave? In Total Per Unit A) Increase Decrease B
Airida [17]

Answer:

A) Increase Decrease

Explanation:

As we know that

Mixed cost is the combination of both fixed cost and the variable cost

Mixed costs are costs in which one component of cost is Fixed and the other component is variable

In equation form,

Mixed cost = Fixed cost + variable cost

In the case of variable cost, the per unit would remain the same and it increased when production increases

But the fixed cost amount would remain the same  but if the production rises the per unit declines

Similarly, Fixed costs remain the same in Total and decreases per unit with increase in production

Therefore option A is correct

8 0
3 years ago
Imagine that you work for a life insurance company. You are setting premiums for insurance based on life expectancy. Assuming yo
jok3333 [9.3K]

Answer:

magine that you work for a life insurance company. You are setting premiums for insurance based on life expectancy. Assuming you charge a higher premium for people expected to have shorter lives, you know that ____older people____ will generally pay more for life insurance than ___younger people_____.

Explanation:

Setting life insurance premiums take into consideration the age of the insured (insurance policyholder).  Other factors considered in setting premiums are gender, medical history, hobby, and career.  Insurance premiums are periodic payments which the insured is expected to make to the insurance company (insurer) to cover the cost of the financial service being rendered and contribute to the defined benefits that will be paid upon expiration or in the event of the risk occurring.

3 0
2 years ago
1. Identify and briefly discuss three factors which influence the choice of crops produced by commercial farmers?[ 2. What is th
wolverine [178]

Answer:

1. a) Location,

    b) earnings

    c) Whether the crop can be produced by its resources or not

Explanation:

Farmer traders consider location as an important element for their crops, the location depends on the quality of the land and the taxes it will pay, and the location of their crop is important for the transport of their products to ensure they arrive in the best condition to the market.

Likewise, the farmer considers as an influential factor how much profit he will obtain with the harvested product, choosing to cultivate the one that produces the greatest benefits, also he must consider having all the labor and resources that are necessary to carry out his harvest and be able to transport it to market it.      

2. Dairy producers need to consider the proximity of farms to the distribution market because the product has a limited time to go expire .

Explanation:

Dairy products are the most delicate and difficult to transport since they have a short time to expire, this is one of the reasons that commercial farmers should take into account that the location of their farm is at a considerable distance from the market, in this way being able to transport their product more safely and distribute it without fear that it expires and lose all their profits.

3. A commercial farmer is concerned with two costs, one of which is the cost of transportation and the other cost is whether there will be a benefit to his crop.

Explanation:  

Commercial farmers at the time of cultivation consider two very important costs for them, one of them the cost of transporting their products to the place of distribution, so they must ensure that it is not very high since it is also important for them the benefit they will get, for this reason, farmers take care that the investment is less so they can enjoy good profits.

   

4. Von Thunen's theory mentions that the distance to the market is a critical point for farmers. Von Thunen explains that a farmer's earnings may decrease the further from the market where he sells his products.

Explanation:

5.  1. One of Von Thunen's assumptions is that there is only one market available and it is self-sufficient without outside influence.

    2. Another assumption is the physical environment is uniform; without rivers, mountains, etc.

    3. And one last assumption is that all farmers act to maximize profits.

Explanation:

1. In Von Thunen's first assumption, he considers there is only one market available and it does not need external influences, but this assumption may not be so correct since there cannot be a single market due to the consumer demand that exists and because there are other farmers from different cities that will bring their products, also cities need an external influence for change, and changes are necessary for the growth of the city.

2. In his theory, Von Thunen mentions the physical environment of the places for agricultural production is uniform, which is difficult due to the landforms that create modifications in the terrain, this uniformity that Thunen mentions could only be achieved if the grounds were modified by men.

3. Thunen's last assumption mentions a very successful situation where farmers carry out actions to obtain the greatest profits, they will continue working to continue obtaining the best benefits.

6. 1. In the middle ring is the market. The market is central because it is the most important part of the city and is easily accessible from the surrounding areas.

   2. The next ring consists of intensive farming and dairy. These products are closer because they are in higher demand and other products can expire.

  3. The next ring is the forest. Wood was also in high demand due to the fact that it was used for heating and cooking. And it had this location because the wood was very heavy and difficult to transport.

  4. The penultimate ring was used for extensive cultivation as bread grains. These are lighter, which makes them easier to transport and cost less money.

  5. And finally, the final outer ring is used for livestock. Animals can be born and raised further from the market because they transport themselves, which means there is no need for fuel, saving the farmer money.

Explanation:  

Von Thunen in his theory mentioned the importance of geographical distribution in agriculture, in which merchant farmers could take advantage of the conditions of the land. For Thunen the distribution and location of the land in an appropriate way would generate the best benefits, for it must organize from the most essential and difficult to transport to the easiest to transport, in this way, for Von Thunen the rings in the markets should be formed.

   

<em>I hope this information can help you.</em>

5 0
3 years ago
The Starr Theater, owned by Meg Vargo, will begin operations in March. The Starr will be unique in that it will show only triple
skelet666 [1.2K]

Answer:

Mar. 2 Rented the three Indiana Jones movies to be shown for the first 3 weeks of March. The film rental was $3,000; $1,600 was paid in cash and $1,400 will be paid on March 10.

Dr Movie rental expense 3,000

    Cr Cash 1,600

    Cr Accounts payable 1,400

3 Ordered the Lord of the Rings movies to be shown the last 10 days of March. It will cost $160 per night.

No journal entry required

9 Received $4,400 cash from admissions.

Dr Cash 4,400

    Cr Service revenue 4,400

10 Paid balance due on Indiana Jones movies rental and $2,200 on March 1 accounts payable.

Dr Accounts payable 3,600

    Cr cash 3,600

11 Starr Theater contracted with Adam Ladd to operate the concession stand. Ladd is to pay 15% of gross concession receipts, payable monthly, for the rental of the concession stand.

No journal entry required

12 Paid advertising expenses $800.

Dr Advertising expense 800

    Cr Cash 800

20 Received $5,500 cash from customers for admissions.

Dr Cash 5,500

    Cr Service revenue 5,500

20 Received the Lord of the Rings movies and paid the rental fee of $1,600.

Dr Movie rental expense 1,600

    Cr Cash 1,600

31 Paid salaries of $2,900.

Dr Wages expense 2,900

    Cr Cash 2,900

31 Received statement from Adam Ladd showing gross receipts from concessions of $5,000 and the balance due to Starr Theater of $750 ($5,000 × 15%) for March. Ladd paid one-half the balance due and will remit the remainder on April 5.

Dr Cash 375

Dr Accounts receivable 375

    Cr Concessions revenue 750

31 Received $9,700 cash from customers for admissions.

Dr Cash 9,700

    Cr Service revenue 9,700

Since there is not enough room here, I prepared a general ledger in an excel spreadsheet and attached it.

Download pdf
8 0
2 years ago
If the fixed costs for a product decrease and the variable costs (as a percentage of sales dollars) decrease, what will be the e
il63 [147K]

Answer:

Option (b) is correct.

Explanation:

Contribution margin ratio is the difference between the selling price of the product and the variable cost of the product.

Contribution margin ratio = Selling price - Variable cost

Now, if there is a decrease in the fixed costs and variable costs of the product then as a result contribution margin ratio increases because of the fall in variable cost.

Break even point = (Fixed expense ÷ Contribution margin ratio)

If there is an increase in the contribution margin ration and a reduction in the fixed expense then as a result break even point decreases.

Increased; Decreased

7 0
3 years ago
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