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prohojiy [21]
3 years ago
7

Tri-coat Paints has a current market value of $41 per share with earnings of $3.64. What is the present value of its growth oppo

rtunities (PVGO) if the required return is 9%?
Business
1 answer:
sammy [17]3 years ago
4 0

Answer:

the present value of its growth opportunities (PVGO) is $0.56

Explanation:

The computation of the present value of growth opportunities is shown below:

= Price per share - (Earnings ÷ required rate of return)

= $41 - ($3.64 ÷ 9%)

= $41 - $40.44

= $0.56

hence, the present value of its growth opportunities (PVGO) is $0.56

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

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Give three example of commercial activities
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The Question has been offered as to pick the least of the terms less expensive than lifetime alternative, so it is smarter to continue with the choices given in the Question.

For 14 years:

Year                Cash Flow                  PVF = 7.6%            Cash Flow

0                      $800                                 1                            $800

1 - 13                $800                             8.0807                   $6464.56

                                                                 <u>Total                    $7264.56 </u>

For 13 years :

Year                Cash Flow                  PVF = 7.6%            Cash Flow

0                       $800                                1                            $800

1 - 12                 $800                            7.6948                   $6155.83

                                                              <u>Total                    $6955.835 </u>

<u> </u>For 19 years

Year                Cash Flow                  PVF = 7.6%            Cash Flow

0                        $800                               1                            $800

1 - 18                  $800                            9.6377                   $7710.16

                                                              <u>Total                      $8510.16 </u>

<u> </u>

For the long time alternative it is realize that not doable choice to go with 19 years so obviously past 19 years likewise not possible so for a long time not comprehended.  

from the over the least is accessible in 13 years so lloyd needs to go for a long time.

3 0
3 years ago
On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the not
Andreyy89

Answer:

credit to interest revenue for $132

Explanation:

given data

face value = $8,800

interest rate = 6 %

time = 90 days

solution

if we see here journal entry that is

date                  particular                                   debit                      credit

October 30       cash A/C                                   $8932

                          to notes payable                                                    $8800

                          to interest revenue                                                $132

                          ( $8800× 6% × \frac{90}{360} )

so here credit to interest revenue for $132

6 0
3 years ago
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