1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Which descriptions offer examples of Health, Safety, and Environmental Assurance workers? Check all that apply.
Makovka662 [10]

Answer: c,d,f

Explanation:

edge 2021

6 0
3 years ago
Read 2 more answers
N a just-in-time logistics system, __________. producers supply products to resellers before customers place their orders produc
Reika [66]
Retailers carry small inventories of merchandise to last for only a few days, in a just-in-time logistic system. In a just in time logistic system, the retailers carry small inventories of the merchandise to last for only a couple of days. So the answer in this question is the retailers carry small inventories of merchandise to last for only a few days.
8 0
3 years ago
22. In which one of the following sentences does the subject come after the verb? A. On the next street, youll ind the shoe shop
Lady bird [3.3K]
B is the correct answer
3 0
3 years ago
The following data relate to direct materials costs for November: Actual costs 4,700 pounds at $5.40 Standard costs 4,500 pounds
Vera_Pavlovna [14]

$2,820 favorable

Calculation to determine direct materials quantity variance

Using this formula:

Direct materials price variance = (Actual materials cost per lb. - Standard materials cost per lb.) × Actual quantity lb

Direct materials price variance = ($5.40 - $6.00) × 4,700 lbs.

Direct materials price variance = (-$0.60) × 4,700 lbs.

Direct materials price variance = $2,820 favorable

Therefore the direct materials price variance is $2,820 favorable.

Direct material costs:

are the costs of raw materials or parts that go directly into producing products. For example, if Company A is a toy manufacturer, an example of a direct material cost would be the plastic used to make the toys.

Why is direct materials important?

Direct materials is an important concept in throughput analysis, where throughput is the revenue generated by a product sale, less all totally variable costs. In most situations, the only totally variable costs associated with a product are its direct materials.

What do you mean by actual cost?

In accounting, Actual Cost refers to the amount of money that was paid to acquire a product or asset. This could be the historical, past, or present-day cost of the product

What do you mean by standard cost?

A standard cost is the budgeted cost of a regular manufacturing process against which actual costs are compared. Of course, if a new product, service, or process is to be carried out, the initial standard costs will have to be estimated.

Learn more about direct costs:

brainly.com/question/21104316

#SPJ4

6 0
1 year ago
An important difference between accounting and other 4 functions, such as marketing and management, is that
Stolb23 [73]
Well, since there's no options

Accounting : providing information regarding all financial aspects in the company

Marketing : determining kinds strategies to introduce  company's products to the market

Management : Organizing all part of the company in order to reach company's goal
3 0
3 years ago
Other questions:
  • Which type of statement is used to communicate ones feelings in a non confrontational manner?
    5·1 answer
  • The span of control for a manager:
    10·1 answer
  • Which materials recycling would reduce the largest portion of america's trash?
    8·1 answer
  • A company has net income of $187,000, a profit margin of 8.6 percent, and an accounts receivable balance of $126,370. assuming 6
    10·1 answer
  • On an aggregate demand and aggregate supply graph, the stagflation of the 1970s can be represented as a
    7·1 answer
  • Savings accounts are different from investments in that they:
    14·1 answer
  • Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to
    9·1 answer
  • Spinal nerves exiting the cord from the level of L4 to S4 form the ________. Spinal nerves exiting the cord from the level of L4
    7·1 answer
  • A formal document detailing the process to be followed when a firm recruits for an open position is a ________.a) recruiting gui
    15·1 answer
  • 1. Describe three different types of cash receipts that a business may record. Also identify the
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!