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3 years ago

Prepare a narrated PowerPoint presentation that will highlight the following items.

Business

1 answer:

vladimir2022 [97]3 years ago

6 0

Answer:

I don't know

Explanation:

Prepare a narrated PowerPoint presentation that will highlight the following items.

a. Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project

b. Your calculations that convert the project's EBIT to free cash flow for the 12 years of the project.

c. The following capital budgeting results for the project:

1. Net present value

2. Internal rate of return

3. Discounted payback period.

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Has the company you’re auditing recently increased or decreased their operations due to mergers or sales of parts of the busines

stealth61 [152]

Answer:The answer is increased their operations, the business is a conglomerate, The operating supplies is subject to wild pricing swing, operation of the business in dangerous part of the world reduces the profit.

Explanation:

Merger is the joining of two or more independent company's into one bigger and United company. The procedures for merger involved the adoption of the resolution of a merger by the board of directors of the two companies, the resolution will set out the new name to be adopted, the terms and conditions of the merger. It also includes the method of converting securities, the plan must be adopted by the two- third majority of the shareholders of both firms. Then all necessary documents will then be submitted to the registrar of company, the registrar of company will then issue a certificate of merger it then that the merger comes into existence. The merger of two companies ensures the raising of enough capital for business. It also ensures the reduction of competition between rivals,it also gives the business the opportunity to compete favourably with other well established firms. It may also ensures the diversification of their range of products and ensures the efficiency of the business.

A merger can be a conglomerate merger, a conglomerate is a merger between two or more different companies under a common ownership and runs as a single organization. The business may be doing a business which are not related before the merger and they may be operating in a different industries or in a different geographical locations.

A price swing is a rise and fall in the sum or amount of money at which a product is valued in the market. The price of a product such as operating supplies may be moving forward or backward in the market which may affect the supply of such a product. The price of a product in the market is determined by the market mechanism which is the force interplay of both demand and supply.

Oversea operation is the expansion of the business to other parts of the world with a view to gain a market share of the market and improve on the profitability of the business. When a company is operating in the dangerous parts of the world such as a country where there is terrorist activities or where there is civil war, it affects their operations and has a great effect on the company's investment in such countries such a company may be forced to close their operations in such a war ravage countries which will affect the profit of the company. It often leads to the reduction in the company's profits when the final account of the company's is prepared.

5 0

4 years ago

Titan Mining Corporation has 6.3 million shares of common stock outstanding, 220,000 shares of 3.6 percent preferred stock outst

Shkiper50 [21]

The firm’s market value capital structure is $503,910,000.

The rate the firm should use to discount the project’s cash flows is 9.33%.

We will begin by finding the market value of each type of financing. We find:

Market value of debt = MVD = 105,000*($1,000)*(1.07) = $25,750,000

Market value of preferred cost = MVP = 220,000*($83) = $18,260,000

Market value of equity = MVE = 6,300,000*($73) = $459,900,000

And the total market value of the firm is:

V = $25,750,000 + 18,260,000+ 459,900,000

V = $503,910,000

So, the market value weights of the company's financing are:

D/V = $25,750,000/$503,910,000 = 0.0511

P/V = $18,260,000/$503,910,000 = 0.0362

E/V = $459,900,000/$503,910,000 = 0.9127

For projects equally as risky as the firm itself, the WACC should be used as the discount rate.

First, we can find the cost of equity using the CAPM. The cost of equity is:

RE = .031 + 1.15(.071)

RE = 0.1030, or 10.03%

The cost of debt is the YTM of the bonds, so:

P0 = $1,070 = $26.50(PVIFAR%,34) + $1,000(PVIFR%,34)

R = 2.228%

YTM = 2.228% × 2

YTM = 4.46%

And the aftertax cost of debt is:

RD = (1 - .22)(.0446)

RD = .0348, or 3.48%

The cost of preferred stock is:

RP = $3.60/$73

RP = .0493, or 4.93%

Now we can calculate the WACC as:

WACC = 0.0511(.0348) + 0.0362(.0493) + 0.9127(.1003)

WACC =0.0933, or 9.33%

Hence, The firm’s market value capital structure is $503,910,000.

The rate the firm should use to discount the project’s cash flows is 9.33%.

Learn more about equity valuation:

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7 0

2 years ago

_____ are companies that invest in start-up businesses with high growth potential in exchange for an ownership stake. venture ca

Morgarella [4.7K]

Venture capital firms are companies that invest in start-up businesses with high growth potential in exchange for an ownership stake.

A venture capitalist helps fund companies with high-potential to growth in exchange for part ownership (Stocks). There is a lot of risks involved with this because the company is brand new, so the outcome of success is unknown.

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4 years ago

Read 2 more answers

On June 1, 2017, Windsor, Inc. was started with an initial investment in the company of $22,420 cash. Here are the assets, liabi

Montano1993 [528]

Answer:

Windsor, Inc.

1. Income Statement for the month of June:

Service revenue $ 7,730

Supplies expense 1,100

Maintenance and

repairs expense 700

Advertising expense 400

Utilities expense 200

Salaries & wages expense 1,630

Total expenses $4,030

Net income $3,700

2. Statement of Retained Earnings for the month of June:

Net income $3,700

Dividends paid 1,720

Retained earnings $1,980

3. Balance Sheet as at June 30, 2017:

Assets:

Current Assets:

Cash $ 4,830

Accounts receivable 4,470

Supplies 2,300 $11,600

Long-term assets:

Equipment 26,230

Total assets $37,830

Liabilities + Equity:

Liabilities

Current Liabilities:

Accounts payable $970

Long-term liabilities:

Notes payable 12,460

Total liabilities $13,430

Equity:

Common Stock $22,420

Retained Earnings 1,980 $24,400

Total liabilities + Equity $37,830

Explanation:

a) Data and Calculations:

Trial Balance as of June 30, 2017:

Accounts Titles Debit Credit

Cash $ 4,830

Accounts receivable 4,470

Supplies 2,300

Equipment 26,230

Notes payable $12,460

Accounts payable 970

Service revenue 7,730

Supplies expense 1,100

Maintenance and

repairs expense 700

Advertising expense 400

Utilities expense 200

Salaries & wages expense 1,630

Dividends paid 1,720

Common stock 22,420

Totals $43,580 $43,580

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3 years ago

Jill is a student at Vanderbilt University who recently got her first F. Now she has to make a decision about how to get her gra

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4 years ago