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2 years ago

Discuss reasons why a business needs funding ?

Business

1 answer:

castortr0y [4]2 years ago

3 0

Answer:

Firms need finance to:

start up a business, eg pay for premises, new equipment and advertising.

run the business, eg having enough cash to pay staff wages and suppliers on time.

expand the business, eg having funds to pay for a new branch in a different city or country.

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Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other

Rama09 [41]

Answer:

a. What is the present value of the free cash flows projected during the next 4 years?

the NPV of the firm's cash flows = $3/1.09 + $6/1.09² + $8/1.09³ + $16/1.09⁴ = $2,752,294 + $5,050,080 + $6,177,468 + $11,334,803 = $25,314,645

b. What is the firm’s horizon, or continuing, value?

to calculate terminal or horizon value at year 4, we must use the Gordon growth model formula:

terminal value = [$16,000,000 (1 + 3%)] / (9% - 3%) = $16,480,000 / 6% = $274,666,667

c. What is the firm’s total value today?

firm's total present value = $25,314,645 + ($274,666,667/1.09⁴) = $219,895,463

d. What is an estimate of Brandtly’s price per share?

Brandtly's share price = (firm's present value - total debt) / outstanding stocks = ($219,895,463 - $75,000,000) / 7,500,000 million stocks = $19.32 per stock

7 0

3 years ago

Why is bangladesh internationally competitive in textile and clothing manufacturer?

nalin [4]

The answer is Low wage rate. Processing plants in Bangladesh, the world's second-driving clothing exporter after China, minimize expenses by paying article of clothing specialists the most minimal wages on the planet — the present least is 3,000 taka, about $38, a month. The wage board suggested on Monday that it be raised to 5,300 takas, about $68.

7 0

3 years ago

Bad Brads BBQ purchased a piece of equipment by paying $5,000 cash. They also incurred a shipping cost of $400 to get the equipm

rodikova [14]

Answer:

The $5,400 is the amount should Bad Brads BBQ record the equipment.

Explanation:

According to the Generally Accepted Accounting Principles (GAAP), the amount of asset is recorded at cost or fair market value which ever is lower.

The motive behind this is to present the financial statement in true and fair value rather than mislead values.

Since in the given question, the equipment purchase cost is $5,000 and shipping charges is $400.

So,

The total cost is = Purchase cost + shipping charges

= $5,000 + $400

= $5,400

And, the fair market value is $7,000.

By using the above explanation, the $5400 is the lesser amount than the $7,000.

Hence, the $5,400 is the amount should Bad Brads BBQ record the equipment.

5 0

3 years ago

Eastland’s government has a total national debt of $500 million, which is financed as follows: $100 million is held by other gov

luda_lava [24]

Answer:

The public debt owed by Eastland is $400 million

Explanation:

In this question, we are asked to calculate the amount of public debt in Eastland.

Public debt refers to the amount of money owed by a country to external borrowers.

It doesn’t include such debt that the country owes itself. For example, debts owed by one agency of government to another.

Hence to calculate the public debt of Eastland, we add the amount of debts owed by citizens of Eastland + Amount of debts owed by foreign citizens in Eastland .

Amount of debt owed by citizens of Eastland is $200 million while the amount of debt owed by foreign citizens is also $200 million.

Mathematically the public debt will be ; $200 million + $200 million = $400 million

4 0

2 years ago

Define securitization.

Harman [31]

The word secure is a protected sounding word so it’s the process of securing something from a business to protecting something from terrorist BASICALLY protecting‍♂️

8 0

2 years ago