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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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Which industry are entrepreneurs drawn to because the industry offers the highest return on time invested and appeals to the tal
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Entrepreneurs are drawn to the services industry to open their new businesses because this industry offers the highest return on time invested and appeals to the talent and innovation that many small enterprises typify.

An entrepreneur is an individual who creates a brand new business, bearing most of the risks and playing a maximum of the rewards. The method of setting up a business is referred to as entrepreneurship. The entrepreneur is normally seen as an innovator, a supply of new thoughts, goods, offerings, and commercial enterprise/or processes.

Examples of entrepreneurs encompass invoice Gates, Steve Jobs, Mark Zuckerberg, Pierre Omidyar, Arianna Huffington, and Caterina fake. important traits of hit entrepreneurs consist of threat taking, creativity, initiative, hassle fixing, organizational capabilities, conversation, and independence.

A study by means of American explicit OPEN determined that extra than half of the entrepreneurs surveyed were paying themselves a full-time revenue, and typically making $ 68,000 a yr. That variety rises and falls from 12 months to year, however, hovers around $70,000.

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7 0
1 year ago
Elian's credit card had a balance of $132.20 on April 1. On April 5, he charged $74.50. On April 18, he made a payment of $52.
djverab [1.8K]

Answer:

$173.45

Explanation:

    132.20

<u>+    74.50</u>

 206.70

************

  206.70

<u>-    52    </u>

154.70

***********

  154.70

<u>+  18.75</u>

173.45

<u />

5 0
2 years ago
________ can be classified according to whether they are delivered by people or equipment, or by business firms or nonprofit org
Amiraneli [1.4K]

Services can be classified according to whether they are delivered by people or equipment, or by business firms or nonprofit organizations.

<h3>What are services?</h3>

Services serves as the task or activities that is been delivered to the client in exchange if rewards.

Services can be different based on the organization performing it such banking sector , and classified according to whether they are delivered by people or equipment, or by business firms.

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3 0
2 years ago
The balance in the supplies account, before adjustment at the end of the year, is $4,850. Journalize the adjusting entry require
rodikova [14]

Answer:

Supplies Expense           $3970 Dr

        Supplies Account      $3970 Cr

Explanation:

The adjusting entry is made at the end of the accounting period. If on the day of adjusting entry, the supplies account shows a higher balance then the supplies on hand, we will need to charge the difference between these two amounts to the supplies expense account and reduce the supplies account by the same amount.

The difference between supplies account and supplies on hand is 4850 - 880 = $3970

7 0
3 years ago
A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of th
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