Answer:
Both will charge $6,904 when they transport 16 tons of sugar.
Explanation:
The amount of sugar to be transported is S, since we need to calculate at which amount of sugar both truck companies charge the same total price, we need to solve the following:
first company charges $4,500 + $150.25 S
second company charges $3,696 + $200.50 S
since both companies will charge the same total amount, then
$4,500 + $150.25 S = $3,696 + $200.50 S
$4,500 - $3,696 = $200.50 S - $150.25 S
$804 = $50.25 S
$804 / $50.25 = S
S = 16
$4,500 + ($150.25 x 16) = $4,500 + $2,404 = $6,904
Answer:
(A) $110,000
(B) $44,000
(C) $440,000
(D) $176,000
Explanation:
Parent corporation invested $1,000,000 in sub corpora tion for 25% of its outstanding stock
Sub corporation pays out 40% of net income of dividend each year
(A) Parent's Co's share of Sub's Co's net income for the year is $110,000
(B) Parent's Co's share of Sub's Co's share of dividend for the year is $44,000
(C) The total net income can be calculated as follows
= 110,000 ×100/25
= 11,000,000/25
= $440,000
(D) The total dividend for the year can be calculated as follows
= 440,000 ×40/100
= 440,000 × 0.4
= $176,000
Answer:
Answer of each requirement is given seperatly below.
a What is the value of Siebel using the DCF method?
Value under DCF = CF * (1+growth rate)/ (WAAC" -Growth rate)
Putting values (assuming after tax earning is all in cash)
Value of SI = 25 (1+6%)/ 20%-6% = 189 million dollars
"WAAC calculation
Here WAAC is equal to cost of equity (ke) as company is debt free.
so
Ke = risk free rate + beta (risk premium)
= 5 + 2.5 (6) = 20%
b What is the value using the comparable recent transactions method?
Based on recent tansaction the value of siebel incorporated will be calculated as shown below
Value of SI = Profit afte * 10 = 25 * 10 = 250 million dollars
Publicly-traded Rand Technology, a direct competitor of Siebel's sale is taken as bench mark.
c What would be the value of the firm if we combine the results of both methods?
By combining value of both value technique we get 189 + 250 = 439 million dollars.
People can claim his work or inventions as their own.
Answer:
Option A is the better choice of the two given any positive rate of return.
Explanation:
