Answer:
Yes, small changes in the assumptions pertaining to the estimation of the terminal value have a significant impact on the calculation of the total value of the target firm.
Explanation:
Terminal value is dependent on the input used in the valuation and the two inputs which heavily influence the value of enterprise are future growth projection and discount rate.
Accurately projecting the future cash flow can be a doubting task and can result in a degree of uncertainty built into estimate.
Small changes in the assumptions pertaining to the estimation of the terminal value have a significant impact on the calculation of the total value of the target firm. This is because, it is these small changes in the stable growth rate can change the terminal value significantly and the effect gets larger as the growth rate approaches the rate used in the estimation of the total value of the target firm.
Answer:
b.$216,000
Explanation:
The computation of the balance in the capital account for Harrison is shown below:
= Opening balance + additional invested amount - withdrawn amount + net income distributed
= $160,000 + $20,000 - $96,000 + $132,000
= $216,000
We assume that the net income is equally distributed.
Since we have to determine for the Harrison only so we ignored the Marti data which is given in the question
Answer:
scope creep
Explanation:
Scope creep refers to the managing of the project with respect to the changes made in the scope of the project after starting of a project. it can arise when the scope of the project is not defined clearly that result in harmful
Therefore as per the situation, the project sponsor reached you with a motive whether you compressed another attribute in the project
So this example represent the scope creep
<u>Answer:</u>
<em>Individuals, as a whole, spend less than they make. The excess is provided for financial institutions.
</em>
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<u>Explanation:</u>
In any market, the cost determines what providers get and what demanders pay. In money related markets, the individuals who supply monetary capital through sparing hope to get a pace of return, while the individuals who request budgetary capital by accepting assets hope to pay a speed of performance. This pace of recovery can arrive in an assortment of structures, contingent upon the kind of speculation.
Members in budgetary markets must choose when they want to devour merchandise: presently or later on. Financial experts call this essential intertemporal leadership since it includes choices crosswise over time.
Answer:
2,080 units
$686,400
Explanation:
The computation of the number of camera sales in units is shown below:-
Number of camera sales in units = Sold units + (Sold units × Percentage of growth in units sales)
= 2,000 + (2,000 × 4%)
= 2,000 + 80
= 2,080 units
The computation of the amount of camera sales is shown below:-
Amount of camera sales = Number of units × Selling price per unit
= 2,080 × $330
= $686,400
