Highlight four reasons why a person may start a business<br>i).....

Quantitative Problem 1: Assume today is December 31, 2017. Barrington Industries expects that its 2018 after-tax operating incom

ziro4ka [17]

Answer:

$29.630

Explanation:

For computation of stock price first we need to follow some steps which is shown below:-

Free cash flow = EBIT (1 - T) + Depreciation - Capital expenditure - Working capital

= $450 million + $65 million - $110 million - $30 million

= $375 million

Value of firm = Free cash flow ÷ (WACC - Growth)

= $375 million ÷ (9% - 4.5%)

= $375 million ÷ 0.045

= $8,333.33 million

Value of equity = Value of firm - Value of debt

= $8,333.33 million - $3,000 million

= $5,333.33 million

Stock price = Value of equity ÷ Outstanding shares

= $5,333.33 million ÷ 180 million

= $29.630

3 0

4 years ago

Cody Barnett describes starting and managing your own business as

artcher [175]

Answer:

Time consuming.

Explanation:

More and more people dream of having their own business not only to dedicate themselves to doing something they like, but also to have more freedom with their time and money.

However, despite the increase in the number of people with this entrepreneurial spirit, not all of them have a deep knowledge of what it means to undertake and are not well aware of the advantages, disadvantages, how to start a business and what kind of profitable businesses can be developed. In addition, many people do not know that setting up their own business is difficult, laborious and time consuming and requires a lot of patience, perseverance and dedication.

4 0

3 years ago

William pays his $500 premium every 6 months for automobile insurance with collision coverage. His deductible is $750. William c

snow_lady [41]

William will pay a total of $750 out of pocket for both cars to be fixed.

The other car is covered by the property damage portion of his insurance, so it is covered 100% by the insurance company and there is no deductible or amount that William needs to pay. William’s car will be covered by the collision portion of his insurance. He is responsible for paying the $750 deductible and the insurance company will pay the remaining $50.

3 0

3 years ago

A stock has had the following year-end prices and dividends:Year Price Dividend1 $ 64.73 â 2 71.60 $ .68 3 77.40 .73 4 63.67 .79

balandron [24]

Answer:

Arithmetic average return = 7.23%

Geometric average return=6.44%

Explanation:

Calculation for the Arithmetic average return

First step is to calculate the return for each year

Using this formula

Return=(Current year price amount-Previous price amount + Current year dividend)/ Previous year price amount ×100

Let plug in the formula

Year 1 Return= ($71.60-$64.73 + $.68) / $64.73

Year 1 Return=$7.55/$64.73

Year 1 Return= 11.66%

Year 2 Return= ($77.40-$71.60 + $.73) / $71.60

Year 2 Return=$6.53=$71.60

Year 2 Return = 9.12%

Year 3 Return= ($63.67-$77.40 +$ .79) / $77.40 Year 3 Return=$-12.94/$77.40

Year 3 Return=-16.72%

Year 4 Return= ($73.91-$63.67 +$ .88) / $63.67

Year 4 Return=$11.12/$63.67

Year 4 Return = 17.47%

Year 5 Return= ($83.75-$73.91 + $.95) / $73.91 Year 5 Return=$10.79/$73.91

Year 5 Return= 14.60%

The second step is to calculate the arithmetic average return

Using the formula

Arithmetic average return = (Addition of the each year return percentage /Numbers of years)

Let plug in the formula

Arithmetic average return (.1166 + .0912-.1672 + .1747 + .1460) / 5

Arithmetic average return =0.3613/5

Arithmetic average return = .0723 ×100

Arithmetic average return = 7.23%

Calculation for the geometric average return

Using this formula

Geometric average return=(1+Each year return percentage)^1/Numbers of years-1)

Let plug in the formula

Geometric average return== [(1 + .1166)×(1 + .0912)×(1-.1672)×(1 + .1747)×(1 + .1460)]^1/5-1

Geometric average return=[(1.1166)×(1.0912)(0.8328)×(1.1747)×(1.146)]^1/5-1

Geometric average return=(1.366011)^1/5-1

Geometric average return=1.0644

Geometric average return=1.0644-1

Geometric average return=0.0644

Geometric average return=0.0644 ×100

Geometric average return=6.44%

Therefore the Arithmetic average return is 7.23% while Geometric average return is 6.44%.

3 0

3 years ago

Which inventory costing method results in the lowest net income during a period of rising inventory costs?.

scoray [572]

Due to the greatest cost of goods sold, the LIFO (Last In Last Out) technique displays the lowest net profitability. Compared to the other techniques of inventory valuation, the cost of goods sold for the LIFO approach is the greatest.

<h3>Which technique of inventory valuation will result in the lowest net profit?</h3>

The application of LIFO will produce the lowest net income and the greatest estimated cost of goods sold among the three options during periods of inflation.

<h3>Which method of inventory has the lowest income tax rate?</h3>

LIFO is the inventory cost flow method that yields the lowest income tax liability. A form of inventory cost flow mechanism called last-in-first-out (LIFO) operates under the presumption that the last item acquired will be the first item to be sold.

<h3>In an era of inflation, which inventory method results in the lowest income tax?</h3>

Due to increasing COGS, LIFO leads to reduced net income (and taxes). However, under LIFO during inflation, there are fewer inventory write-downs. Results from average cost are in the middle of FIFO and LIFO.

To Know more about techniques

brainly.com/question/13655064

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7 0

1 year ago

Highlight four reasons why a person may start a businessi).....​

Highlight four reasons why a person may start a businessi).....