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rjkz [21]
3 years ago
5

Conundrum Mining is expected to generate the above free cash flows over the next four years,after which they are expected to gro

w at a rate of 6% per year. If the weighted average cost ofcapital is 12% and Conundrum has cash of $80 million, debt of $60 million, and 30 millionshares outstanding, what is Conundrumʹs expected terminal enterprise value?A) $413.4 millionB) $459.3 millionC) $505.3 millionD) $528.2 million
Business
1 answer:
frutty [35]3 years ago
4 0

Answer:

B. 459.3 million

Explanation:

FCF5 = $26 million * (1 + 0.06) = 27.6 million

and to continue

V4 = $27.6 million / (0.12 - 0.06) = 459.3 million

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At the start of the current year, Company A purchased 30% of Company B for $45 million. At the time of purchase, the carrying va
brilliants [131]

Answer: a. $4.5 million

Explanation:

The depreciation to be recognized is;

= Value of Depreciable assets * Percent of company owned

= 15,000,000 * 30%

= $4,500,000

5 0
3 years ago
On September 30, 2021, Bricker Enterprises purchased a machine for $200,000. The estimated service life is 10 years with a $20,0
vagabundo [1.1K]

Answer:

$38,000

Explanation:

Double-declining-balance method used its ratio by computing depreciation expense. By multiplying it against original cost. To get ratio we simply divide 100% over the life of an asset times 2.

100% / 10 years x 2 = 20%

First, we will compute the 2021 depreciation for us to know our base amount on year 2022.

$200,000 x 20% = $40,000 x3/12 = $10,000

we prorate the annual depreciation expense because part of it is applicable to 2021 and 2022.

For year 2022, we have two ways to compute.

First:

$200,000 x 20% = $40,000 x 9/12 = $30,000 (the portion of the first year’s depreciation that’s for January 1, 2022 to September 30,2022), plus

$200,000 - $40,000 = $160,000 (year 2 net book value)

$160,000 x 20% = 32,000 x 3/12 = $8,000 (portion of second year’s depreciation that for October 01, 2022 to December 31, 2022)

Or second, an alternative way to compute,

2021

$200,000 x 20% = $40,000 x 3/12=$10,000

2022

$200,000 - $10,000 = $190,000 (Net book value)

$190,000 x 20% = $38,000

*Residual value is ignored in computing depreciation expense under double-declining-balance method.

7 0
3 years ago
Organisms exhibiting complex multicellularity are large and have cells/tissues that are not in contact with their environment. S
maxonik [38]

Answer:

Explanation: the question should be, Why is bulk flow a necessary condition of complex multicellularity?

Then here is the answer, Multicellular organisms are that have plenty cells and they have s complex units that makes up their functions and makes them to begin to function as one.

Organisms exhibiting complex multicellularity are big and have cells/tissues that are not usually in contact with their environment. They are have systems that can overcome the limits of diffusion (movement from area of higher concentration to that of lower) must evolve for basic physiologic processes to occur.

7 0
3 years ago
Smart Stream Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and
weqwewe [10]

Answer:

A. $2,400,000

B. $36

C. $49

Explanation:

Base on the scenario been described in the question, we can use the following method to solve the given problem

a. Ascertain the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones:

The total variable cost = $2,400,000

Variable cost per unit =$240

help_outline

fullscreen

b. Ascertain the variable cost mark-up percentage for cellular phones:

Compute the desired ROI per unit:

help_outline

fullscreen

Compute the Fixed co

An attached image in given for the calculations

4 0
3 years ago
"according to the ______ method of accounting, revenues are recognized when they are earned"
ZanzabumX [31]

Answer:

the correct answer is accrual-basis

Explanation:

"according to the accrual-basis method of accounting, revenues are recognized when they are earned"

good luck

6 0
3 years ago
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