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True [87]
3 years ago
10

What is Company XYZ's intrinsic equity value using the WACC as the discount rate and assuming the terminal value is based on the

EBITDA exit multiple
Business
1 answer:
const2013 [10]3 years ago
5 0

Answer:

$315,198

Explanation:

WACC = [ Equity / Total value ] * cost of equity + [ Debt / Total value ] * Cost of debt.

WACC = 11.5%

Exit multiple = Total cash outflow / Total cash inflow

Exit multiple = $120,000 / 36,000 = 3.3x

EBITDA of the company is $178,412.

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Eduardo sold 500 shares of northcutt corporation stock on the new york stock exchange. this transaction:____.
Rasek [7]

Since Eduardo sold 500 shares of Northcote corporation stock on the new York stock exchange. this transaction is known to be occurred in the secondary market.

<h3>What Is a Secondary Market? </h3>

The secondary market is known to be a type of a market where investors are said to come together so as they can be able to buy and sell securities that they are said to have  already own.

Note that it is what a lot of  people often  think of as the "stock market," and as such, Since Eduardo sold 500 shares of Northcote corporation stock on the new York stock exchange. this transaction is known to be occurred in the secondary market.

Learn more about secondary market from

brainly.com/question/14484986

#SPJ1

: Eduardo sold 500 shares of Northcutt Corporation stock on the New York Stock Exchange. This transaction: Multiple Choice took place in the primary market occurred in a dealer market occurred in the secondary market. involved a proxy

7 0
1 year ago
Exercise 11-13A Calculate financing cash flows (LO11-5) Dristell Inc. had the following activities during the year (all transact
Scilla [17]

Answer:

The net cash flows from financing activities is -$45,000

Explanation:

The computation of the net cash flows from financing activities is shown below:

=  Additional common stock issued - purchase of treasury stock - dividend paid - long term note payable issued

= $160,000 - $75,000 - $40,000 - $90,000

= -$45,000

The other items which are mentioned in the question have come under the investing activities

3 0
3 years ago
The act of dividing a market into segments of customers is referred to as
vesna_86 [32]

Answer:

C

Explanation:

Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations.

8 0
2 years ago
An airport needs a modern material handling system for facilitating access to and from a busy maintenance hangar. A​ second-hand
Arlecino [84]

Answer:

The second hand machine should be chosen given that the NPV value is lower than that of the new system

Explanation:

cost of second hand system = $75,000

cost of  new system = $150,000

New system can decrease labor hours by 20%

number of useful life ( for both systems ) = 5 years

market value of second hand system after 5 years = $20,000

market value of new system after 5 years = $50,000

Second hand system can operate for 8 hours/day for 20 days = 8*20 = 160 hours per month = 1920 hours per year

labor cost = $40 per hour

MARR = 1% per month

<u> Determine the system that should be recommended</u>

we have to calculate the NPV for both options

for Option 1 ( second hand system )

labor cost = 40 * 1920 = $76800

cost of purchase = $75,000

MARR = 12% p.a.

residual value = $20000

First step : calculate the PV of maintenance cost = $76800× PVAF(12%, 5 years) = $276864

Next : calculate the PV of residual value =$20000× PVF(12%, 5th year)

= $11340

NPV = (75000 + 276864 - 11340 ) = $340,524

for Option 2 ( New Machine )

Labor cost = ( 1920 × 0.8 )hours ×40  = $61440

cost of machine = $150000

Pv of labor cost = 61440×3.605  = $221491.20

Residual value = $50,000

Hence ; PV of residual value = 50000 × 0.567 = $28350

Finally calculate the NPV = (150000+221491.20-28350) = $343,141.20

7 0
3 years ago
A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2005 found a job paying $
11111nata11111 [884]

Answer:

D. Less; Less

Explanation:

Given that

CPI in 2005 = 1.68

Wage in 1972 = 7200

Wage in 2005 = 30,000

CPI in 1971 = 0.418

Therefore,

Real wage in 1972 = wage in 1972/CPI in 1972

= 7200/0.418

= $17,224.88

Real wage in 2005 = wage in 2005/CPI in 2005

= 30000/1.68

=$17,857.14

Thus, from the given data 1972 job paid LESS in nominal terms (7200 < 30000) and LESS in real terms (17,244.88 < 17,857.14) than the 2005 job.

6 0
3 years ago
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