Answer is given below :
Explanation:
Global integration refers to the coordination of the organization’s value chain operations within countries, achieving efficiency, synergy and cross-fertilization between countries so that equality between countries is maximized. Between global integration and local accountability, the integration-accountability framework is called to help managers develop a deeper understanding of the business. We can say at the outset or at the outset that an export strategy that applies to Hollywood is used when a company focuses primarily on its domestic operations. It is not intended to expand globally, but to export certain products to take advantage of international opportunities. It does not seek to adapt its products to international markets. It is not interested in responding to specific situations in other countries or formulating a unified world strategy. Hollywood not only produced films and shows that catered to the needs of its native business aimed at American Western culture, but as the industry began to expand it began to adopt a multi-national strategy. Multi dimensional strategy follows products or processes for specific situations in each country. In the initial example, Lincoln should use a multi-year strategy to adapt its manufacturing methods to the conditions of each country where electric factories are built. Retailers often use multicultural strategies because they must cater to local customer tastes. Hollywood has started producing Indian films like Kung Fu Panda, Karate Kids, Oscar Winning Slumdog Millionaire.The global strategy that Hollywood studios followed at first was the international strategy.
It should be noted that the global strategy that Hollywood studios followed originally was the international strategy where identical movies were showed in foreign countries.
This has changed now as there are different movies that are filmed and in different versions. Also, it isn't in the control of the government to edit out any part.
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An investment adviser representative's friend provides him with a list of 10 prospective clients. The representative agrees to pay his friend a referral fee for each person on the list that opens an account with the adviser. Which statement is TRUE
Answer: C. The arrangement is permitted only if it is in writing between the investment adviser and the friend and the arrangement is disclosed in writing to any customer opening an account
Explanation:
The friend in this case will be ruled to be a Solicitor under SEC Rules as they are referring clients to the Investment Adviser for a fee.
As such this business relationship between the friend and the Investment Adviser representative will fall under SEC Rule 206(4)-3 Cash payments for client solicitations. This rule makes it clear amongst other things that the investment adviser will have to prepare a written disclosure document which will inform any customer opening an account of the agreement between the adviser and his friend.
Geese Company utilizes the LIFO retail inventory method. Its cost-to-retail percentage is 60% based on beginning inventory and 64% based on current-period purchases. The company determined that beginning inventory at retail was $200,000 and that during the current period a new layer was added with retail value of $50,000. The cost of ending inventory should be
Answer:
$152,000
Explanation:
Calculation for the cost of the ending inventory
First step is to calculate the cost-to-retail percentage of the beginning inventory amount
Using this formula
Beginning Inventory =Cost-to-retail percentage*Beginning inventory at retail
Let plug in the formula
Beginning Inventory =60%*$200,000
Beginning Inventory =$120,000
Second step is to calculate current-period purchases percentage of the new layer amount
Using this formula
Current period purchases= Purchases percentage* New layer
Let plug in the formula
Current period purchases=64%*50,000
Current period purchases=$32,000
The last step is to find the cost of the ending inventory using this formula
Ending inventory cost=Beginning Inventory+Current period purchases
Let plug in the formula
Ending inventory cost=$120,000+$32,000
Ending inventory cost=$152,000
Therefore the cost of the ending inventory will be $152,000
The profit-maximizing monopolist produces _____________ units and charges a price of _____________.
Answer: Q0; P3
Explanation:
The profit-maximizing monopolist produces Q0 units and charges a price of P3.
According to the exhibit graph, the monopolist will produce Q0 units. This is because a monopoly maximises profit at the point where Marginal Revenue equals Marginal Cost. Looking at the chart, the quantity of output where this happens is Q0.
The Monopolist will then charge a price of P3. After the profit-maximising output is realized, the way to find out the price the monopolist will sell at is the point where the output produced intersects with the Demand curve. At this point, the price listed is what people are willing to buy that amount of quantity for and so the Monopoly will sell at that price.
. Define a primary and secondary market for securities and discuss how they differ. Discuss how the primary market is dependent on the secondary market. (
Explanation:
Primary market for securities is one that provides access to buy new new issues of stocks and bonds of a company. A good example of primary market is an Initial Public Offering (IPO), organized by a company that wants to sell it's shares for the first time to investors.
While Secondary market, are places to sell securities to a secondary (second) buyer from the current security owner who bought from the primary market.
The primary market is dependent on the secondary market since it is the demand from the secondary market that determines the asset valuation of the primary market.
Emira wants to buy a classic drawing from an art centre in Kuala Lumpur. She managed to secure a painting by a renowned Malaysian artist that costs her RM99,800. Currently, she only has RM12,650 in her savings account and she intends to use 70% of her saving to fund the purchase. If she borrows the remaining amount from Bank Atlantis that levies 4.77% of interest rates, determine the total interest payment that she will pay if the agreement takes 10 years of settlement.
Answer:
RM23,617.80
Explanation:
cost of the painting RM99,800
she has RM12,650 on her bank account and she will use 70% = RM8,855 as down payment. She will borrow the rest = RM99,800 - RM8,855 = RM90,945
interest charged on the loan 4.77% / 12 = 0.3975%
120 monthly periods (10 years)
using the present value formula to determine the monthly payment:
PV = monthly payment x annuity factor
monthly payment = PV / annuity factor
PV = 90,945
annuity factor (120 periods, 0.3975%) = 95.26168
monthly payment = 90,945 / 95.26168 = 954.69
total payments = 120 x 954.69 = RM114,562.80
interests paid = RM114,562.80 - RM90,945 = RM23,617.80
The Janjua Company had the following account balances at 1/1/18:
Common Stock $65,000
Treasury Stock (at cost) 13,400
Paid-in-Capital in Excess of Par 82,000
Investments in AFS Debt Securities 40,000
FVA (AFS) 1,500 credit
Retained Earnings 22,000
On that date, the Accumulated OCI account was at its proper balance.
There were no sales or purchases of Common Stock or Investments during 2018. Prior to any adjusting journal entries related to the investments, 2018 Net Income was $10,300. No other transactions affecting Retained Earnings occurred. Fair Value of the Investments at 12/31/2018 was $41,500.
Required:
a. Prepare the 12/31/18 journal entry to adjust the investment to fair value.
b. Prepare the complete 12/31/18 Equity section of the balance sheet.
Answer:
a. Journal Entry:
Investments in Debt securities (Dr.) $1500
Fair Value of Debt securities(Cr.) $1500
b. Equity Section:
Common Stock $65,000
Retained Earnings $22,000
Treasury Stock $13,400
Revaluation of Debt securities $1,500
Explanation:
Investments in AFS Debt securities 40,000
Fair value of the investment on 12/31/2018 is $41,500
The difference between fair value and reported value will be adjusted through journal entry. The difference is of $1500 (41,500 - 40,000) is the revaluation amount of the securities.
You just sold 500 shares of Wesley, Inc. stock at a price of $30.92 a share. Last year, you paid $32.04 a share to buy this stock. What is your capital gain on this investment
Answer:
-$560
Explanation:
The computation of capital gain on this investment is shown below:-
Capital gain = (Stock price - Paid shares) × Sold shares
where,
The Stock price is $30.92
Paid shares is $32.04
And, the sold shares is 500 shares
Now placing these values to the above formula
So, the capital gain on this investment is
= ($30.92 - $32.04) × 500
= -$1.12 × 500
= -$560
The Government Accounting Office (GAO) announces deep cuts to social security, Medicare, and welfare programs. Which determinant of aggregate demand causes the change
Answer:
Consumer spending
Explanation:
Consumer spending is the amount that individuals and families spend on final goods and services for personal use and enjoyment in the economy. Contemporary measures of consumer spending include all private purchases of durable goods, durable goods and services. Consumer spending can be thought of as a combination of personal savings, investment cost, and output in the economy.so correct answer is Consumer spendingThe two main types of e-commerce are
Answer:
B2B (Business to business) and B2C (Business to consumer)
has a target debt−equity ratio of .50. Its cost of equity is 15 percent, and its cost of debt is 6 percent. If the tax rate is 34 percent, what is the company’s WACC?
Answer:
11.35%
Explanation:
The calculation of WACC is shown below:-
WACC = Cost of equity × (equity ÷ (Debt + Equity)) + cost of debt × (debt ÷ (Debt + Equity)) × (1 - tax rate)
= 0.15 × (1 ÷ 1.50) + 0.06 × (0.50 ÷ 1.50) × (1 - 0.34)
= 0.15 × 0.67 + 0.06 × 0.33 × 0.66
= 0.1005 + 0.013068
= 11.35%
Therefore for computing the WACC we simply applied the above formula.
"Your customer has been declared legally incompetent and his daughter has presented the proper legal papers appointing her as the guardian. Which statement is TRUE?"
Answer: B. Trading instructions can be accepted only from the daughter
Explanation:
The customer has been declared legally incompetent which means that he should not be making decisions that have to do with something as serious as trading instructions as he will not be able to comprehend them.
The only person that should therefore take over such roles would be his daughter who is a legal guardian. As she is not his guardian, she is able to take such decisions for him and so the trading instructions should be accepted only from the daughter.
1. Noor Patel has had a busy year! She decided to take a cross-country adventure. Along the way, she won a new car on "The Price Is Right" (valued at $15,500) and won $500 on a scratch-off lottery ticket (the first time she ever played). She also signed up for a credit card to start the trip and was given a sign-up bonus of $100. How much will she have to include in her federal taxable income?
2A. What is the amount of taxes for a head of house hold with a taxable income of $57,500 with a rate of 25%?
B. What is the amount of taxes for a single person with a taxable income of $35,000 with a rate of 15%?
C. What is the amount of taxes for a married couple filling jointly with a taxable income of $70,700 with a rate of 15%?
Answer:
1. 16,100
Explanation:
To get how much she would include in her federal taxable income. We would have to add up these values:
The car won on the price is right + scratch off lottery + sign up bonus.
15,500 + 500 + 100
=$16,100
2a.
head of household
0 to 9275 at 10% = 927.5
(37650 - 9275)*15% = 4256.1
(57500 - 37650)*25% = 4962.5
total = 927.5 + 4256.1 + 4962.5
= 10146.1
2b
single person
0 to 9275 at 10% = 927.5
(35000-9275)*10% = 3858.75
total = 927.5 + 3858.75
= 4786.25
2c
for married couple
0 to 18550 at 10% = 1855
(70700-1855)*15% = 7822.5
total = 1855 + 7822.5
=9677.5
The mode of transportation that results in the lowest transportation cost will also lower total costs for a supply chain.
a) true
b) false
Answer: False
Explanation:
Transportation is the movement of individuals or goods from one place to another. Supply chain are the steps that are involved before a product will finally get to the consumer.
It should be noted that the mode of transportation that results in the lowest transportation cost will not necessarily lower total costs for a supply chain. This I because transportation isn't the only process involved on supply chain.
A portfolio to the right of the market portfolio on the CML is: Group of answer choices a lending portfolio. an inefficient portfolio. a borrowing portfolio.
Answer:
a borrowing portfolio.
Explanation:
A borrowing portfolio is a portfolio to the right of the market portfolio. It is on the right half of the line. It shows that an investor can purchase the market portfolio and still borrow money so as to purchase more.
CML is known as the the capital market line. It shows the most advantageous portfolios that are a combination of risk and return.
Answer:
a borrowing portfolio.
Explanation:
A borrowing portfolio is a portfolio to the right of the market portfolio. It is on the right half of the line. It shows that an investor can purchase the market portfolio and still borrow money so as to purchase more.
CML is known as the the capital market line. It shows the most advantageous portfolios that are a combination of risk and return.
Explanation:
How much time, on average, would a server need to spend on a customer to achieve a service rate of 20 customers per hour?
Answer:
3 hour 18 minutes or 3 hour
Explanation:
According to the given situation, the computation of time on average is shown below:-
The Average waiting time in the system
= [tex]\frac{1}{\mu} -\gamma[/tex]
Now we will put the values into the above formula to reach the time on average which is here below:-
[tex]= \frac{1}{20} - 1[/tex]
[tex]= \frac{1}{19}[/tex]
= 0.053 × 60 minutes
= 3 hours 18 minutes
We assume [tex]\gamma[/tex] is 1 hour
Therefore for computing the time on average we simply applied the above formula.
If the economy is normal, Charleston Freight stock is expected to return 16.5 percent. If the economy falls into a recession, the stock's return is projected at a negative 11.6 percent. The probability of a normal economy is 70 percent while the probability of a recession is 30 percent. What is the variance of the returns on this stock
Answer:
Variance of the returns of this stock is 0.01658177
Explanation:
Mean return = 0.7 * 16.5% + 0.3*-11.6%
Mean return = 0.1155 - 0.0348
Mean return = 0.0807
Mean return = 8.07%
Variance of the return = 0.7 * (16.5%-8.07%)^2 + 0.3 * (-11.6%-8.07%)^2
Variance of the return = 0.7 * (8.43%)^2 + 0.3 * (-19.67%)^2
Variance of the return = 0.7 * (0.0843)^2 + 0.3 * (-0.1967)^2
Variance of the return = 0.0049745 + 0.011607267
Variance of the return = 0.01658177
Bing engaged Dill to perform personal services for $2,200 a month for a period of four months. The contract was entered into orally on July 1, 1984, and performance was to commence on September 1, 1984. On August 10, Dill anticipatorily repudiated the contract. As a result, Bing:
Answer:
Bing can immediately sue for breach of contract
Explanation:
Based on the scenario that is being described, Bing can immediately sue for breach of contract. Breaching a contract is when one party in a binding agreement fails to deliver according to the terms of the agreement. When Dill made an anticipatory repudiation, he basically stated that he does not intend to live up to the obligations of the contract that he had agreed to, therefore breaching the contract and becoming liable.
The ___________ incorporates a line receiver in order to convert the optical signal into the electrical regime.
a) Attenuator
b) Transmitter
c) Repeater
d) Designator
Answer: repeater
Explanation:
The attenuation is used to limits the maximum distance that occurs between an optical fiber transmitter and the receiver.
It should be noted that the repeater helps to incorporates a line receiver to convert the optical signal into the electrical regime.
Vaughn Manufacturing is constructing a building. Construction began in 2020 and the building was completed 12/31/20. Vaughn made payments to the construction company of $3114000 on 7/1, $6456000 on 9/1, and $5950000 on 12/31. Weighted-average accumulated expenditures were
Answer:
$3,709,000
Explanation:
7/1 Time weighted amount = $3,114,000 * 6/12 = $1,557,000
9/1 Time weighted amount = $6,456,000 * 4/12 = $2,152,000
12/31 Time weighted amount = $5,950,000 * 0/12 = $0
Weighted-average accumulated expenditures = 7/1 Time weighted amount + 9/1 Time weighted amount + 12/31 Time weighted amount
Weighted-average accumulated expenditures = $1,557,000 + $2,152,000 + 0
Weighted-average accumulated expenditures = $3,709,000
A promotion related to the movie Pacific Rim Uprising was seen in Target stores throughout the United States. The sales promotion was designed to maximize the consumer's attention to a DVD release and provide storage for the products. This type of sales promotion is referred to as a
Answer:
This type of sales promotion is referred to as a Dealer Sales Promotion (Trade Promotion).
Explanation:
The Dealer Sales Promotion, otherwise known as Trade Promotion, is aimed at Dealers, designed to maximize the attention of consumers, and provide storage for the products in Target stores throughout the United States. The promoters want Pacific Rim Uprising to be seen by consumers, so that their attention is galvanized, and to get Target stores to create the space for the DVD upon the film's release, through cooperative advertising. It is not aimed directly at consumers or salespersons, but dealers.
how will a new front desk manager address a problem of lateness in a hotel.
Answer:
They will have a system like a lot book where they would take in the visitors details and then Mark in or out and time of arrival and leaving
Hope this helps :)
Explanation:
At the end of a particular operating period, suppose Brenda (the manager) sits down with Ethan (the employee) and they meet to determine how well Ethan's performance has met the objectives set by Brenda. Which step in the MBO process would this be?
Answer:
Evaluate performance
Explanation:
The mbo process is a time where an employee and manager work together and sets record for a particular period of time.
This step in the mbo process is evaluation of performance. Under this step, the manager reviews the work of the employee from the question, this is what Brenda is doing with Ethan. She is evaluating his performance.
A cash equivalent is: Multiple Choice Another name for cash. Close to its maturity date but its market value may still be affected by interest rate changes.
Complete Question:
A cash equivalent is:
Group of answer choices
a) Generally is within 12 months of its maturity date.
b) Another name for cash.
c) An investment readily convertible to a known amount of cash.
d) Is not considered highly liquid.
e) Close to its maturity date but its market value may still be affected by interest rate
changes
Answer:
c) An investment readily convertible to a known amount of cash.
Explanation:
In Financial accounting, cash equivalents can be defined as any short term and highly liquid investments which can be easily converted or transformed to a known and standard amounts of cash and as such are subjective to little or no risk of changes in value.
This ultimately implies that, a cash equivalent is an investment readily convertible to a known amount of cash.
Under the statements of cash flow, cash equivalents can be classified broadly into three (3) categories and these are;
1. Operating activities.
2. Financing activities.
3. Investing activities.
Answer:
money
Explanation:
Problem 9-18 Comprehensive Variance Analysis [LO9-4, LO9-5, LO9-6]
Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below:
Flexible Budget Actual
Sales (3,000 pools) $ 179,000 $ 179,000
Variable expenses:
Variable cost of goods sold* 33,390 44,540
Variable selling expenses
11,000
11,000
Total variable expenses
44,390
55,540
Contribution margin
134,610
123,460
Fixed expenses:
Manufacturing overhead 50,000 50,000
Selling and administrative 75,000 75,000
Total fixed expenses
125,000
125,000
Net operating income (loss) $ 9,610 $
(1,540
)
*Contains direct materials, direct labor, and variable manufacturing overhead.
Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to "get things under control." Upon reviewing the plant’s income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool:
Standard Quantity or Hours Standard Price
or Rate Standard Cost
Direct materials 3.6 pounds $
2.00
per pound $ 7.20
Direct labor 0.5 hours $
6.60
per hour 3.30
Variable manufacturing overhead 0.3 hours* $
2.10
per hour
0.63
Total standard cost per unit $ 11.13
*Based on machine-hours.
During June the plant produced 3,000 pools and incurred the following costs:
Purchased 15,800 pounds of materials at a cost of $2.45 per pound.
Used 10,600 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)
Worked 2,100 direct labor-hours at a cost of $6.30 per hour.
Incurred variable manufacturing overhead cost totaling $3,000 for the month. A total of 1,200 machine-hours was recorded.
It is the company’s policy to close all variances to cost of goods sold on a monthly basis.
Required:
1. Compute the following variances for June:
a. Materials price and quantity variances.
b. Labor rate and efficiency variances.
c. Variable overhead rate and efficiency variances.
2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month.
Answer:
1 a. Materials price and quantity variances.
Material price variance = (Actual price - Standard price) * Actual Quantity purchased
= ($2.45 - $2) * 15,800
= $0.45 * 15,800
= $7110 (Unfavorable)
Materials Quantity variance = (Actual Quantity used - Standard Quantity allowed) * Standard price
(10600 - 3000 * 3.6) * $2
= (10,600 - 10,800) * $2
= 200 * $2
= 400 (Favorable)
b. Labor rate and efficiency variances.
Labor rate variance = (Actual rate - standard rate) * Actual hours
= (6.30 - 6.6) * 2,100
= 0.3 * 2,100
= 630 (Favorable)
Labor Efficiency variance = (Actual hours - standard hours allowed) * Standard rate
= (2100 - 3000 * 0.5) * 6.6
= (2,100 - 1,500) * 6.6
= 600 * 6.6
= 3960 (Unfavorable)
c. Variable overhead rate and efficiency variances
Variable overhead rate variance = (Actual rate - Standard rate * Actual machine hours)
= 3000 - (2.10 * 1200)
= 3,000 - 2,520
= 480 Unfavorable
Variable overhead Efficiency variance = (Actual hours - standard hours allowed)* Standard rate
= (1200 - 3000 * 0.3) * 2.10
= (1200 - 900) * 2.10
= 300 * 2.10
= 630 (Unfavorable)
2. Variances Amount
Material price variance 7,110 U
Material quantity variance 400 F
Labor rate variance 630 F
Labor efficiency variance 3,960 U
Variable overhead rate variance 480 U
Variable overhead efficiency variance 630 U
Net variance 11,150 U
The net variance of all the variance of the month is 11,150 (Unfavorable)
Southland Corporation has a present capital structure consisting of common stock (10 million shares) and debt ($150 million, 8% coupon rate). The company needs to raise $60 million and is undecided between two financing plans. Plan A: Equity financing. Under this plan, an additional common stock will be sold at $15 per share. Plan B: Debt financing. Under this plan, the firm will issue 10% coupon bonds. At what level of operating income (EBIT) will the firm be indifferent between the two plans? Assume a 40% marginal tax rate.
Answer:
The level of operating income (EBIT) where the firm will be indifferent between the two plans is $33 million.
Explanation:
Indifferent level of EBIT refers to the EBIT level where the he Earnings Per Share (EPS) two alternative financial plans are the same.
Indifferent level of EBIT can be calculated using the following formula:
[(EBIT - FB) * (1 - T)] / SA = [(EBIT - FB) * (1 - T)] / SB .................... (1)
Where:
EBIT = Indifference level of EBIT
FA = Fixed interest costs under plan B = Interest on existing debt = $150 * 8% = $12 million
FB = Fixed interest costs under plan A = Interest on existing debt + Interest on new debt = ($150 * 8%) + ($60 * 10%) = $18 million
T = Tax rate = 40%, or 0.40
SA = Number of equity shares outstanding under Plan B = Existing number of shares + New number of shares = 10 million + ($60 million / $15) = 10 million + 4 million = 14 million
SB = Number of equity shares outstanding under Plan A = Existing number of shares = 10 million
Substiuting the values into equation (1) and solve for EBIT, we have:
[(EBIT - 12) * (1 - 0.40)] / 14 = [(EBIT - 18) * (1 - 0.40)] / 10
[(EBIT - 12) * 0.60] / 14 = [(EBIT - 18) * 0.60] / 10
[EBIT0.60 - 7.20] / 14 = [(EBIT0.06 - 10.80] / 10
[EBIT0.60 - 7.20] * 10 = [(EBIT0.06 - 10.80] * 14
EBIT6 - 72 = EBIT8.40 - 151.20
-72 + 151.20 = EBIT8.40 - EBIT6
EBIT2.40 = 79.20
EBIT = 79.20 / 2.40
EBIT = $33 million
Therefore, the level of operating income (EBIT) where the firm will be indifferent between the two plans is $33 million.
Using the following data on bond yields: This Year Last Year Yield on top-rated corporate bonds 4 % 7 % Yield on intermediate-grade corporate bonds 6 % 9 % a. Calculate the confidence index this year and last year.
Answer:
0.6667 ; 0.7778
Explanation:
Given the following :
- - - - - - - - - - - - - - - - - this year - - - - last year
Top rated bond - - - - - 4% - - - - - - - - - 7%
Intermediate grade - - 6% - - - - - - - - - 9%
Confidence Index (This year) :
(Yield on top rated corporate bond / yield on intermediate grade corporate bond)
= 4% / 6% = 0.6667
Confidence index(last year) :
(Yield on top rated corporate bond / yield on intermediate grade corporate bond)
= 7% / 9% = 0.7778
Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $53 each with expected sales of 4,300 tops annually. By adding the fleece tops, management feels the firm will sell an additional 285 pairs of jeans at $65 a pair and 420 fewer T-shirts at $26 each. The variable cost per unit is $36 on the jeans, $16 on the T-shirts, and $31 on the fleece tops. With the new item, the depreciation expense is $33,000 a year and the fixed costs are $76,000 annually. The tax rate is 35 percent. What is the project's operating cash flow?
Answer: $26,282.25
Explanation:
The operating cash-flow will be the amount of cash the company got from sales less the amount they would have to pay on taxes.
Cash from tops
= (Sales price - Variable costs) * quantity
= ( 53 - 31) * 4,300
= $94,600
Cash from jeans
= ( 65 - 36) * 285
= $8,265
Cash from jeans
= (26 - 16) * -420
= -$4,200
As this deals with cash, a tax adjusted depreciation will need to be added back because it is a non cash expense and fixed costs will have to be deducted.
Pre-tax operating cash-flow = 94,600 + 8,265 - 4,200 - 76,000
= $22,665
Post-tax Project Operating cash-flow
= $22,665 * ( 1 - 0.35) + (depreciation * tax)
= $22,665 * ( 1 - 0.35) + (33,000 * 0.35)
= $14,732.25 + 11,550
= $26,282.25
Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions).
2020 2019
Net sales $5,200 $5,500
Cost of goods sold 3,484 3,830
Net income 78 123
Accounts receivable 82 103
Inventory 1,146 1,262
Total assets 2,990 3,510
Total common stockholders’ equity 992 1,031
Required:
Compute the following ratios for 2020.
Answer:
Profit margin = net profit / total sales = $78 / $5,200 = 1.5%
Asset turnover = total sales / average total assets = $5,200 / ($2,990 + $3,510) = 1.6
Return on assets = net income / average total assets = $78 / $3,250 = 2.4%
Return on common stockholders’ equity = net income / average stockholders' equity = $78 / ($992 + $1,031) = 7.71%
Gross profit rate = gross profit / total sales = $1,716 / $5,200 = 33%
Which method of evaluating capital investment proposals uses present value concepts to compute the rate of return from the net cash flows
Answer:
Internal rate of return
Explanation:
The internal rate of return is that return in which the net present value equivalent to zero
i.e.
Net present value = 0
That means
Initial investment = Present value of cash inflows after charging the discounting factor like 10% 12% etc
So as per the given situation, the internal rate of return is the correct answer
In the consensus case, what is Amazon's enterprise value on the valuation date using the exit multiple terminal value
Answer:
The exit multiple expect that the market different premise is a reasonable strategy for esteeming a business. The estimation of the business is gotten by duplicating money related measurements, for example, EBITDA or EBIT by a factor that is basic to practically identical organizations that were as of late procured. A fitting scope of products can be created by taking a gander at late equivalent acquisitions in the open market.
The various acquired is then increased by the anticipated EBIT or EBITDA in year N (last year of projection period) to give the future incentive toward the finish of year N. The future value (otherwise called terminal value) is then limited by a factor equivalent to the quantity of years in the projection time frame.
The worth got is then added to the current estimation of the free incomes to acquire the suggested venture esteem. For repetitive organizations where profit vacillate as per varieties in the economy, we utilize the normal EBITDA or EBIT over the span of the particular recurrent as opposed to the sum in year N in the projection time frame.
This implies an industry different is applied as opposed to applying a current numerous to consider the recurrent varieties of profit. On the off chance that investigators utilized a current numerous, the valuation would be influenced by financial cycles.
A Enterprise Value (EV) to Revenue Multiple is used to value a business by dividing its enterprise value by its annual revenue. The formula to calculate the Enterprise Value (EV) to Revenue Multiple is EV/Revenue
EV = Enterprise Value
EV can be denoted as (Equity Value + All Debt + Preferred Shares) – (Cash and Equivalents)
While Revenue = Total Annual Revenue
This can be calculated when we have a share price, shares outstanding, debt, and cash or its equivalence.
