Under the fair-value method of recording stock options, companies will report

The company has net nonoperating obligations (NNO) of $10,000 and 5,000 shares outstanding. Calculate the per-share stock price

Arte-miy333 [17]

The per-share stock price for 2021 using the FCFF information for Target Corp. is $2.37.

Explanation:

Net non-operating obligations (NNO) = $10,000

Outstanding shares = 5,000 shares

Discount rate = 7%

Terminal Growth rate = 2%

Expected free cash flows for Target Corp. for 2019:

Current Forecast Horizon Terminal

2019 2020 2021 2022 2023 Year

Free cash flows (FCFF) $4,650 $4,880 $5,130 $5,390 $5,650 $5,766

Discount factor at 7% 0.935 0.873 0.816 0.763 0.713

PV of FCFF $4,563 $4,478 $4,398 $4,311 $4,111

a. Sum of PV of FCFF for 2020 to 2032 = $17,750 ($4,563 + $4,478 + $4,398 + $4,311)

b. The PV Terminal Year = $4,111

c. Total Firm Value = $21,861 ($17,750 + $4,111)

d. Total Equity Value = $11,861 ($21,861 - $10,000)

e. Per Share Stock Price = $2.37 ($11,861/5,000)

Thus, the per-share stock price for 2021 using the FCFF information for Target Corp. is $2.37.

Learn more: brainly.com/question/22681779

6 0

3 years ago

"On January 1, MM Co. borrows $360,000 cash from a bank and in return signs an 8% installment note for five annual payments of $

scoray [572]

Answer:

1.Jan 01 Dr Cash 360,000

Cr Notes payable 340,000

2.Interest expense 28,800

Principal Reduction 61,364

Explanation:

MM Co.

1 . Journal entry

Since MM Co. borrows $360,000 cash on January 1 from a bank this means we have to

Debit Cash with the amounts of money he borrowed which is $360,000 and Credit Notes Payable with the same amount.

Jan 01 Dr Cash 360,000

Cr Notes payable 340,000

2. Calculation of the amount goes toward interest expense and Principal reduction

Interest expense 28,800

(360,000*8%)

Principal Reduction 61,364

(90,164-28,800)

5 0

4 years ago

Jane learned that, although she and June were both hired as part-time salesclerks at the same time and have similar backgrounds,

sveta [45]

Answer:

Equity Theory

Explanation:

Based on the information provided within the question this seems to be a clear example of Equity Theory. This theory focuses on determining if the amount of a certain reward or payment that is divided among a set of individuals is fair, and is measured by comparing the contributions that are received by each individual or that set/group. Which seems to be the case in this scenario since June feels that it is unfair that they both do the same work and she is getting paid $1 less than her co-worker.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0

4 years ago

Suppose that you invest $100 today in a risk-free investment and let the 6 percent annual interest rate compound. What will be t

Kipish [7]

Solution :

It is given that :

Amount of investment or the principle amount , P = $ 100

Time of investment , t = 6 years

Rate of interest compounded annually r = 6 %

Therefore the future amount of this investment in a 6 year time is given by,

$$FV=P(1+\frac{r}{100})^t$