Answer:
The value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places
Explanation:
We first need to calculate the required rate of return for this firm that will be used as the discount rate in the valuation of the firm using the discounted cash flow methods.
Using the CAPM we can calculate the required rate of return as,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on Market
So,
r = 0.04 + 0.4 * (0.11 - 0.04)
r = 0.068 or 6.8%
As the cash flows the firm can generate are expected to remain constant through out and they are generated after equal interval of time, this can be treated as a perpetuity.
The present value of a perpetuity is calculated as follows,
Present Value of perpetuity = Cash Flow / r
Present value of perpetuity = 10000 / 0.068
Present value of perpetuity = $147058.8235
So, the value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places
Answer:
$162,500
Explanation:
Depletion is used to expense the cost of extracting natural resources.
Depletion expense = (unit extracted in 2017 / total units that could be extracted) x (Cost- salvage value)
(1,500,000 / 12,000,000) x ( $1,500,000 - $200,000) = 0.125 × 1,300,000 = $162,500
I hope my answer helps you
Answer:
Option b (reflects..................settled) is the right response.
Explanation:
- The estimated beneficiary obligation was indeed unwounded by that of the identification of inflation rates through an investment that raises something both PBO reserve as well as the retirement expenditure between each duration.
- The premium on either the expected advantage commitment portion including its pension cost illustrates the amounts beyond which the pension contributions will indeed be reasonably negotiated.
Any other option is not connected to that case. That's the right choice.
Specific statements detailing what the organization intends to accomplish over a short period of time are called objectives. Objectives are stated by the company to keep goals on track and allow the organization to monitor their growth and completion. By keeping objectives open to everyone within the organization, it makes it easier for employees to stay on task and make sure by the end of the period, everything is done.
Answer:
See below
Explanation:
The preparation of the end December income statement for the company is seen below;
Service revenue
$8,800
Less:
Salaries expenses
($1,950)
Utilities expenses
($1,000)
Net income
$5,850
