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larisa [96]
2 years ago
9

If a target was purchased for $1,500.0m with an equity contribution of $500.0m, what is the enterprise value of the target if it

used $500.0m of cash flow to repay debt?
a. $1,000.0m
b. $500.0m
c. $1,500.0m
d. $2,000.0m
Business
1 answer:
posledela2 years ago
8 0

Answer: a. $1,000.0m

Explanation:

Even though the company's enterprise value has no growth, the equity investment of the sponsor will rise from $500.0m when purchased to $1,000.0m when the target for the value of the enterprise is sold for $1500.0m.

The debt was $1000m at year 0 while the remaining $500m was for equity. It should be noted that at the fifth year, equity will be $1,000.0m while the debt will be $500m.

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The inventory subsidiary ledger is used a.to keep track of inventory sold. b.to keep track of proper inventory maximum and minim
Serggg [28]

Answer:

All of these choices are correct

Explanation:

The inventory subsidiary ledger is used to keep track of the true inventory levels all the time in a company and whether inventory goes missing or not, they keep track of every movement of inventory that happens in a company.

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According to the consumer bill of rights, the idea that consumers' interests should receive full and sympathetic consideration i
Serga [27]

Answer:

right to <u>the consumer</u>.

Explanation:

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What happens to earnings in a cooperative?
Lunna [17]

The earnings in a cooperative are shared with member owners.  The cooperative societies distribute the profits to its members based on the business transacted with the Cooperative society.

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3 years ago
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Jane transferred a piece of real estate to her son Christopher 6 months ago. Jane purchased the real estate for $90,000 six year
goldenfox [79]

Answer:

c. Christopher will have a dual basis for income tax purposes.

Explanation:

Due to the fact that the basis of Jane in the specific property was higher than the FMV of the property on the specific date that she gave out the property, therefore, the double basis principle will apply to Christopher. In addition, Christoper will not collect any additional basis for the tax paid on the gift. The correct answer is option c.

7 0
3 years ago
You are planning to save for retirement over the next 25 years. To do this, you will invest $1,000 a month in a stock account an
STALIN [3.7K]

Answer:

Monthly withdraw= $12,452.6

Explanation:

<u>First, we need to calculate the total accumulated at the moment of retirement. We will use the following formula:</u>

<u></u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Stock:

Monthly investment= $1,000

Interest rate= 0.09/12= 0.0075

Number of periods= 25*12= 300 months

FV= {1,000*[(1.0075^300) - 1]} / 0.0075

FV= $1,121,121.94

Bond:

Monthly investment= $700

Interest rate= 0.06/12= 0.005

Number of periods= 25*12= 300 months

FV= {700*[(1.005^300) - 1]} / 0.005

FV= 485,095.77

Total FV= 1,121,121.94 + 485,095.77

Total FV= $1,606,217.71

<u>Now, the annual withdrawal:</u>

<u></u>

Interest rate= 0.07/12= 0.005833

Number of months= 12*20= 240

Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]

Monthly withdraw= (1,606,217.71*0.005833) / [1 - (1.005833^-240)]

Monthly withdraw= $12,452.6

3 0
3 years ago
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