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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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Monty Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $132,800 Allowance for
creativ13 [48]

Answer: The following journal entries apply:

a) Debit Bad debt expense                                    $32,727.6  

  Credit Allowance for doubtful accounts            $32,727.6

b) Debit Bad debt expense                                    $37,017.6  

  Credit Allowance for doubtful accounts            $37,017.6

Explanation: All the sales revenue are on credit to the tune of $806,700, however, there was sales return and allowance of $51,060, which has to be deducted from credit sales to arrive at the net credit sales of $755,640. This amount would be added to the accounts receivable of $132,800 to arrive at the total accounts receivable of $888,440.

a) 4% of $888,440 is $35,537.6. With credit balance of $2,810 in allowance for doubtful accounts, bad debt expense (addition) is $32,727.6  ($35,537.6 - $2,810).

b) 4% of $888,440 is $35,537.6 and there is a debit balance of $1,480 in allowance for doubtful accounts, bad debt expense (to reinstate allowance account to $35,537.6) is $37,017.6 ($35,537.6 + $1,480).

3 0
3 years ago
Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost
worty [1.4K]
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4 0
3 years ago
Karina looked at her paycheck stub. Her gross pay was $245 and her net pay was $200. How much did she have in deductions?
sammy [17]
How much did she have in deductions? $45
7 0
3 years ago
Read 2 more answers
Jasmine Carmichael has been called for jury duty. When Jasmine reports for jury duty, she is sent to a court room with others fo
belka [17]

Answer:

a. ​Jasmine can be removed for cause.

Explanation:

Voir Dire is the questioning phase of jury selection in which the attorneys of both sides ask questions to see if the jury members are qualified.

When someone is removed for cause it means that the attorney thinks that the jury member can't be impartial based on bias or conflict.

In this case Jasmine can't be impartial because of her past relationship with the prosecutor.

5 0
3 years ago
Mountain Made started the month with 3 quilts in its beginning inventory that cost $200 each. During the month, Mountain Made pu
Virty [35]

Answer:

Cost of Goods Sold for the month is $1656

Explanation:

Weighted Average Cost System calculates a new average for goods after each purchase.

Mountain Made Inventory Balance runs as follows:

<u>At Beginning:</u>

(3 quilts × $200) = $600

<u>After Purchased of 7 additional quilts for $210 each:</u>

(3 quilts × $200) + (7 quilts × $210) = $2070

New Inventory Cost = $2070/10quilts =$207 each

<u>At end</u>

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Therefore cost of sold quilts is 8 × $207 = $1656

8 0
3 years ago
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