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Mamont248 [21]
3 years ago
5

Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6,100, $11,100, and

$17,300 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 15 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.
Business
1 answer:
Tomtit [17]3 years ago
4 0

Answer:

Total PV= $25,072.57

Explanation:

Giving the following information:

Cash flows:

Cf1= $6,100

Cf2= $11,100

Cf3= $17,300

Discount rate= 15%

<u>To calculate the present value, we need to use the following formula on each cash flow:</u>

PV= Cf / (1+i)^n

PV1= 6,100 / 1.15= 5,304.35

PV2= 11,100 / 1.15^2= 8,393.19

PV3= 17,300 / 1.15^3= 11,375.03

Total PV= $25,072.57

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Answer:

C) to determine the amount and/or percentage increase or decrease that has taken place.

Explanation:

Horizontal analysis can be regarded as an approach which is been used in analyzing financial statements through making comparism between specific financial information for a particular accounting period along with the information from other periods. This approach is been used by Analysts to make analysis of historical trends.

It should be noted that Horizontal analysis evaluates a series of financial statement data over a period of time to determine the amount and/or percentage increase or decrease that has taken place.

6 0
3 years ago
York Casting Services started the year with total assets of $110,000 and total liabilities of $50,000. The revenues and the expe
Wittaler [7]

Answer:

Net income:                             $

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Expenses                            (50,000)

Dividend paid                    <u> (70,000)</u>

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Explanation:

Net income is the excess of revenue over expenses and dividend. A positive net income increases the stockholders' equity. Common                                                                                                                                                      stockholders are legal owners of a company, thus, any income not distributed as dividend increases their equity.                                                            

6 0
3 years ago
Some club members want to increase membership dues by $7.00.Other club members want to increase them by $3.00.They have reached
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Answer:

Option E (Compromising) would be the correct choice.

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  • A conflict mediation method of consensus attempts to discover a reason to reasonably pleasing parties and from both sides of the debate.
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The other choices aren't relevant to the situation presented. Because otherwise, that is the right answer.

5 0
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Answer:

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Since revenue cycle is capturing of bills and payment for product or service rendered. The work mentioned in the problem is part of revenue cycle.

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Answer:

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If the level of income of a family increases, other things being equal, the family tends to hold more money for their daily transaction. The level of income is directly proportional to amount of cash a family holds...

For example, family A earns $100 per week and holds $30 to meet daily transaction or unforeseen circumstances. If his pay increases to$150, it is intuitive for Mr A to hold higher money, lets say $50

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