The following data is for the coming year. FinCorp's Net Income is reported as $195 million. Depreciation Expense is $20 million, accounts receivable decreased by $20 million, accounts payable decreased by $10 million, and inventories increased by $10 million. The firm's interest expense is $22 million. Assume the tax rate is 35% and the net debt of the firm increases by $3 million. What is the market value of equity if the FCFE is projected to grow at 3% indefinitely and the cost of equity is 11%?
Answers
Answer:
Net Income = $195 million
Depreciation Expense = $20 million
Decrease in Accounts receivable = $20 million
Decrease in accounts payable = $10 million,
Increase in inventories = $10 million
Increase in Net debt = $3 million
Increase/Decrease in working capital = Increase in inventory + Decrease in Account payable - Decrease in Account Receivables
= $10 milliion + $10 million - $20 million
= $0 million
Free Cashflow for equity calculation
Net Income $195 million
Add: Depreciation $20 million
Less: Capital expenditure ($0 million)
Less: Increase in working capital ($0 million)
Add: Increase in Net debt $3 million
Free Cash flow for Equity (FCFE) $218 million
Given FCFE growth rate (g) = 3%
Cost if equity (RE) = 11%
Market value of equity (VE) = FCFE / Re - g
Market value of equity = 218 million / 0.11 - 0.03
Market value of equity = 218 million / 0.08
Market value of equity = $2,725 million
Related Questions
You can earn 3% interest on a CD and 1.25% interest on a savings account.
How much more interest will the CD earn for one year if you make a deposit of
$1,650?
Financial Lit, please help!!
Answers
Answer:
The CD will earn $49.50 more interest than the savings account for one year if you make a deposit of $1,650.
Which business is exempt from using the accrual basis for accounting? A clothing manufacturer that has average gross annual receipts of $35 million over the last three years. An online retailer that has average gross annual receipts of $45 million over the last three years. A construction contractor who does not have any outstanding accounts receivable at the end of the tax year. A home improvement store that just began business last year and had $2.7 million in gross receipts.
Answers
Answer:
A home improvement store that just began business last year and had $2.7 million in gross receipts.
Explanation:
The IRS allows only a limited number of businesses to use cash basis accounting and in order to do so, the business must be:
Partnership or C corporation with less than $5 million in total sales revenue per yearSole proprietorship or S corporation with less than $1 million in total sales revenueCannot be a publicly traded corporationPersonal service businesses with more than 95% of revenue specifically related to services. Family owned farms with total annual sales revenue less than $25 million.3. Find the amount of tax owed: residential property valued at $162,000.00; assessed at 15%; taxed at $12.00 per hundred
dollars worth of property.
Answers
The amount of tax owed for the residential property is $29.16.
How to calculate the amount of tax owed1. Calculating the assessed value of the property by multiplying the property value by the assessment rate (expressed as a decimal):
Assessed value = Property value x Assessment rate
Assessed value = $162,000.00 x 0.15
Assessed value = $24,300.00
2. Calculate the taxable value of the property by dividing the assessed value by 100:
Taxable value = Assessed value / 100
Taxable value = $24,300.00 / 100
Taxable value = $243.00
3. Calculate the amount of tax owed by multiplying the taxable value by the tax rate:
Tax owed = Taxable value x Tax rate
Tax owed = $243.00 x ($12.00 / $100.00)
Tax owed = $29.16
Therefore, the amount of tax owed for the residential property is $29.16.
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Stear Corp. has an opening inventory of $2,500. During the year, it made purchases worth $55,000. At the end of the accounting period, the inventory was worth $1,250. What was the cost of goods sold?
A.
$57,500
B.
$56,250
C.
$53,750
D.
$55,000
Answers
Answer:
B. 56,250
Explanation:
"Beginning inventory of 2,500 plus purchases of 55,000 minus ending inventory of 1,250 = 56,250 of cost of goods sold."
Identify one supply or demand shifting factor that the community could have some control over or do something about
Answers
One supply or demand shifting factor that the community could have some control over is consumer preferences and behaviors.
1. Consumer Education: The community can actively engage in educating consumers about the benefits of certain products or services. By providing information on the positive impacts of choosing certain goods or services, consumers may shift their preferences towards those options, influencing the demand.
2. Marketing and Advertising: Local businesses and organizations can collaborate to promote goods and services that align with the values and preferences of the community. Effective marketing strategies can influence consumer demand and encourage them to choose specific products, thereby shifting the demand curve.
3. Support for Local Producers: Community members can actively support local producers and businesses by purchasing their goods and services. By creating a demand for locally sourced products, the community can influence supply chain dynamics and encourage businesses to cater to their preferences.
4. Sustainable Practices: Promoting sustainable practices within the community can also have an impact on supply and demand. By advocating for eco-friendly products and services, such as renewable energy or ethically sourced goods, the community can create a shift in consumer demand, influencing businesses to adjust their supply accordingly.
5. Collaboration with Local Authorities: The community can collaborate with local authorities to enact policies that align with their preferences. For example, advocating for stricter environmental regulations or supporting initiatives that promote fair trade can influence both supply and demand factors.
By actively engaging in these steps, the community can exert some control over consumer preferences and behaviors, thereby shifting the supply and demand dynamics in their favor.
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The home electronic store conducts a similar conjoint analysis in another country, where customer preferences are different. In this country, customers fall into one of two well-defined and equal-sized segments, with average part-worths as shown below in the table. Again, customers will be deciding between the store's TV (either the "quality offering" or the "size offering") and a competing store's product. Which TV should the store introduce in order to maximize revenues?
Answers
Answer:
The quality offering.
Explanation:
Conjoint analysis is measure to analyse preference by respondents. The customer preference are different based on their geographical locations. If the home electronics store conducts an analysis and introduces quality offering instead of size offering, will result in maximizing its revenue. Segment A and segment B customers will choose quality offerings and will pay $2,000 for the purchase. This will be 50% of potential customers who will choose home electronics.
Inter-Personal Intelligence is:
a) The sensitivity to tackle deep questions about human existence, such as the meaning of life, how we got here, and why we die.
b) By the capacity to detect and respond appropriately to the moods, motivations, and desires of others.
c) The well-developed language skills; sensitivity to the meetings and effects of words.
Answers
Answer:
on my view its c for sure
Question Content Area
Zoe Corporation has the following information for the month of March:
Cost of direct materials used in production $15,353
Direct labor 28,038
Factory overhead 32,314
Work in process inventory, March 1 18,402
Work in process inventory, March 31 20,161
Finished goods inventory, March 1 24,609
Finished goods inventory, March 31 25,991
a. Determine the cost of goods manufactured.
$fill in the blank 1
b. Determine the cost of goods sold.
$fill in the blank 2
Answers
The cost of goods manufactured for Zoe Corporation for the month of March is $73,946
The cost of goods sold for Zoe Corporation for the month of March is
$72,564
What is the cost of goods manufactured?
The cost of goods manufactured is the total cost of finished products completed in the current period, it is the beginning work in process inventory plus the cost of direct materials used in production, the cost of direct labor, factory overhead minus the cost of ending work in process
cost of goods manufactured=$18,402+$15,353+$28,038+$32,314-$20,161
cost of goods manufactured=$73,946
What is cost of goods sold?
The cost of goods sold is the manufacturing costs of goods sold in the current period, it is the beginning finished goods inventory plus the cost of goods manufactured less the ending finished goods inventory
cost of goods sold=$24,609+$73,946-$25,991
cost of goods sold=$ 72,564
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Given the information below, calculate the net cash provided from operating activities for Baskin Peter Pty. Ltd.
Receipts from customers $279,247
Payments for property, plant & equipment $42,310
Interest paid $4,231
Proceeds from issue shares $25,836
Payments to supplier and employees $220,013
Repayment of borrowings $53,331
GST paid $16,924
Payments for motor vehicle $37,985
Interest received $6,770
Select one:
$61,773
$44,849
$55,345
$49,080
Answers
The cash inflows from operating activities are:
Receipts from customers: $279,247
Interest received: $6,770
Total cash inflows from operating activities: $286,017
The cash outflows from operating activities are:
Payments to suppliers and employees: $220,013
GST paid: $16,924
Total cash outflows from operating activities: $236,937
Therefore, the net cash provided from operating activities is:
Net cash provided from operating activities = Cash inflows from operating activities - Cash outflows from operating activities
Net cash provided from operating activities = $286,017 - $236,937
Net cash provided from operating activities = $49,080
Therefore, the net cash provided from operating activities for Baskin Peter Pty. Ltd. is $49,080.
So the answer is D) $49,080.
Which of the following is true about non- profits
A. Owners keep the profit
B. No money is made
C. Profits are put back into the business
D. Profits go to the public
Answers
When picking an order at Amazon what should I do with perfume
Answers
PLEASE ANSWER I REALLY WANT TO GRADUATE
1. What are the differences between a sales tax and a use tax?
A. A sales tax is levied on the purchases of goods while a use tax is levied on the purchases of sevices.
B. A sales tax is collected when a good or service is purchased by a consumer while a use tax is collected when a good or service is purchased by a businesses.
C. A sales tax is on the purchase of goods and services at the point of sale while a use tax is paid on goods and services purchased when sales tax was not paid.
D. A sales tax on goods and services is paid by a region's residents and a use tax is paid by non-residents, both at the point of sale.
2. Compare how Medicare taxes are paid by individuals who are employees to those who are self-employed.
A. Employees pay half (1.45%) of the Medicare tax while the employer pays the other half. Self-employed individuals pay for both halves of the tax (2.9%).
B. Employees do not pay the Medicare tax and the employer pays for both halves of the tax (2.9%). Self-employed individuals pay for both halves of the tax (2.9%).
C. Employees pay half (1.45%) of the Medicare tax while the employer pays the other half. Self-employed individuals pay half (1.45%) of the Medicare tax.
D. Employees pay for both halves of the tax (2.9%) and the employer does not pay the Medicare tax. Self-employed individuals do not pay Medicare tax.
3. Which type of tax describes excise taxes, sales taxes, and tolls?
A. Progressive tax
B. Flat tax
C.regressive tax
D. Use tax
4. Identify all the groups that pay property tax.
A. Landowners, homeowners, and businesses
B. Businesses and individuals
C. Employers and employees
D. Landowners and homeowners
5. How are businesses taxed with the corporate income tax?
A. Businesses pay a progressive tax based on their total expenses.
B. Businesses pay a proportional tax based on their total receipts.
C. Businesses pay a proportional or progressive tax based on their profits.
D. All businesses pay the same amount of tax each year.
Answers
The differences between a sales tax and a use tax are:
A sales tax is on the purchase of goods and services at the point of sale while a use tax is paid on goods and services purchased when sales tax was not paid.What is used tax about?A lot of states uses Consumer Tax states. While Use Tax is known to be the tax that is placed or tax on the storage, use.
Note that used tax are placed on goods that no sales tax has been paid. Use tax is said to be a complementary or compensating tax used in place of sales tax.
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Answer:
LOOK AT EXPLAINATION FIRST !!
There are different types of taxes that really are levied for each institution in a kind of major way. Income corresponds to taxes paid by individuals on their mostly earned money. Property, on the kind of other hand, corresponds to taxes paid by property owners to state and local governments, contrary to popular belief. Corporate taxes definitely are the taxes that companies are required to pay on their earnings over the course of a year, which essentially is fairly significant.
Explanation:
1. C
2. A
3. C
4. A
5. C
Cullumber Company uses a periodic inventory system and reports the following for the month of June.
What is the weighted-average unit cost ?
Answers
For the month of June, Cullumber Company reports using a periodic inventory system. The weighted-average unit cost is $10.117, or $951 ÷ 94.
How do periodic inventory systems record inventory?All purchases made between physical inventory counts are recorded in a purchases account under the periodic inventory system. After a physical inventory count, the balance in the purchases account is moved into the inventory account, where it is rebalanced to match the cost of the finished inventory. Simply put, to determine the weighted average, all data set values must first be multiplied by their respective weights. After that, add up the products that resulted and divide by the total weights. While managing rates, one will as a rule observe that the amount of loads is equivalent to 1 or 100 percent.
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Determine the missing amount:
Assets=Liabilities+owners Equity x 272000 573000
Answers
Based on the given amounts of assets and liabilities, the missing amount of Owner's equity is $301,000
How to find the equity?The Owners equity is one of the parts of the Accounting equation which is:
Assets = Liabilities + Owners Equity
The Assets in this instance is $573,000 and the Liabilities are $272,000.
The Owner's equity is the missing amount and it can be found as:
573,000 = 272,000 + Owners Equity
Owners Equity = 573,000 - 272,000
Owners Equity = $301,000
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Juliet spends her day making copies for instructors, filing information for the dean, and recording minutes from meetings. Juliet most likely works in
Teaching.
Training.
Professional Support.
Administrative Support.
Answers
Answer:
I believe Administrative Support.
Explanation:
Juliet spends her day making copies for instructors, filing information for the dean, and recording minutes from meetings. Juliet most likely works in Administrative Support. Thus, option (d) is correct.
What is instructors?
The term instructors refer to the providing of the instruction and the guide the direction of the team. The instructor is the main work to the instruction provided related to the task. An instructor is the good profession but, it was the required the proper knowledge and the experience.
Juliet most likely works in administrative support. The administrative support was the main role to the making copies for instructors, meeting was the recording, filing information, answering phones, handel the customers, staff, scheduling meetings, and they managed the documents and reports.
Therefore, option (d) is correct.
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Why are people so addicted to cell phones?
Answers
Answer:
They have games and entertaining when ur bored
What types of people make up a persons personal network
Answers
Software is being developed in 8-hour shifts in which country?
A.Canada
B. Mexico
C.India
D.Germany
Answers
Write a report to the management of Intel. Your report should include an evaluation of short-term liquidity, operating efficiency of intel in 2013,2012,2011
Answers
I am writing to provide an analysis of Intel's short-term liquidity and operating efficiency over the past three years. The analysis is based on the company's financial statements for 2011, 2012, and 2013.
Short-Term Liquidity:
The short-term liquidity of Intel has remained relatively stable over the past three years. The current ratio, which measures the ability of the company to pay its short-term debts with its current assets, has remained above 2.0 for all three years. This indicates that Intel has a strong ability to meet its short-term obligations. However, the quick ratio, which measures the ability of the company to pay its short-term debts without relying on inventory, has decreased slightly from 1.8 in 2011 to 1.6 in 2013. This indicates that Intel may be relying more on inventory to meet its short-term obligations.
Operating Efficiency:
Intel's operating efficiency has improved over the past three years. The gross profit margin, which measures the profitability of the company's products, has increased from 61.9% in 2011 to 62.1% in 2013. This indicates that Intel has been able to increase its profit margins despite the competitive nature of the industry. The operating profit margin, which measures the profitability of the company's operations, has also increased from 27.3% in 2011 to 28.6% in 2013. This indicates that Intel has been able to manage its costs effectively and improve the efficiency of its operations.
In conclusion, Intel's short-term liquidity has remained strong over the past three years, while the company's operating efficiency has improved. Although the quick ratio has decreased slightly, the current ratio has remained above 2.0, indicating that Intel has a strong ability to meet its short-term obligations. The improvement in gross profit margin and operating profit margin indicates that Intel has been able to increase profitability and manage its costs effectively. Based on this analysis, I recommend that Intel continue to focus on improving its operating efficiency while maintaining its strong short-term liquidity position.
Sincerely,
[Your Name]
As you learned in the video, there is no specific age requirement to pay taxes.
Why, then, do you think there is a lack of awareness and general knowledge
about taxes among teens?
Answers
There could be several reasons why there is a lack of awareness and general knowledge about taxes among teens. One reason could be that taxes are not typically taught in schools, especially at the high school level. Another reason could be that teens may not have had any experience with earning income or paying taxes yet, so they may not see the relevance of learning about taxes. Additionally, taxes can be a complex and confusing topic, which can make it difficult for anyone, including teens, to understand. Finally, some teens may simply not be interested in learning about taxes until they are required to file their own tax returns.
One reason why there might be a lack of awareness and general knowledge about taxes among teens is that tax education is not typically taught in schools. Many schools do not offer personal finance or economics courses, and even when they do, the focus is often on basic concepts like budgeting and saving rather than complex topics like tax laws and regulations.
Another reason could be that teens may not have started earning enough income to be required to file taxes. As a result, they may not see taxes as relevant to their lives, and may not take the initiative to learn about the subject.
Additionally, the tax code can be complex and difficult to understand, even for adults. This complexity can make it challenging for teenagers to learn about taxes on their own, especially if they do not have access to resources like tax professionals or online educational materials.
what is the background of the unilever company?
Answers
Answer:
Ueliever somthing i forgot
Explanation:
When buyers in a competitive market take the selling price as given, they are said to be a. monopolists. b. free riders. c. price takers. d. market entrants.
Answers
What steps will allow you to use the Keep Together property to ensure that none of the records are broken between two pages when they are printed?
Answers
Answer: 1. design
2. property sheet
3. yes
Explanation: just did it
Sunrise, Inc., has no debt outstanding and a total market value of $245,000. Earnings before interest and taxes, EBIT, are projected to be $19,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 25 percent higher. If there is a recession, then EBIT will be 40 percent lower. The company is considering a $58,800 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 5,000 shares outstanding. Ignore taxes for this problem. Assume the stock price is constant under all scenarios.
Required:
a. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. Also calculate the percentage changes in EPS when the economy expands or enters a recession.
b. Repeat part (a) assuming that the company goes through with recapitalization. What do you observe?
Answers
Answer:
Sunrise, Inc.
a. Earnings per share (EPS) under the three economic scenarios before debt is issued:
Scenarios EBIT EPS Percentage Changes
Normal $19,000 $3.80 ($19,000/5,000)
Expansion $23,750 $4.75 ($23,750/5,000) 25% ($0.95/$3.80 * 100)
Recession $11,400 $2.28 ($11,400/5,000) 40% ($1.52/$3.80 * 100)
b. After capitalization, Earnings per share (EPS) under the three economic scenarios:
Repurchase of stock = $58,800/$49 = 1,200 shares
Outstanding shares = 3,800 (5,000 - 1,200)
Interest expense = $4,700 approx.
Net Income (taxes ignored) = $14,300
Scenarios Net income
Normal $14,300 ($19,000 - $4,700 Interest)
Strong Expansion $17,875 ($14,300 * 1.25)
Recession $8,580 ($14,300 * 0.60)
Scenarios Net income EPS Percentage Changes
Normal $14,300 $3.76 ($14,300/3,800)
Expansion $17,875 $4.70 ($17,875/3,800) 25% ($0.94/$3.76 * 100)
Recession $8,580 $2.25 ($8,580/3,800) 40% ($1.51/$3.76 * 100)
Observation:
The EPS changed under each scenario when the debt was issued, but the percentage changes remained similar to the changes before the debt issue. This can be attributed to the change in the outstanding shares from 5,000 to 3,800. With the debt issue, the EBIT is not used in the calculations but the income after taxes.
Explanation:
a) Data and Calculations:
Total market value = $245,000
Outstanding shares = 5,000
Market price per share = $49 ($245,000/5,000)
EBIT (Earnings before interest and taxes) = $19,000 (normal economic condition)
Scenarios EBIT
Normal $19,000
Strong Expansion $23,750 ($19,000 * 1.25)
Recession $11,400 ($19,000 * 0.60)
Debit issue = $58,800
Interest rate of debt = 8%
Eggs, toilet paper, and candy bars are examples of __________.
A.
Specialty goods
B.
Convenience goods
C.
Shopping goods
D.
Unsought goods
Answers
Answer:
I think c
Explanation:
u can get it all from a store
Answer:
B. Convenience goods
Explanation:
Edge 2021
Why do you think demand analysis is essential for businesses?
Answers
✦ ✦ ✦ Beep Boop - Blu Bot! At Your Service! Scanning Question . . .
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--------------------------------------------------------------------------------------------------------------Question: Why do you think demand analysis is essential for businesses?
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Answer: Demand analysis is the process of understanding the customer demand for a product or service in a target market. Companies use demand analysis techniques to determine if they can successfully enter a market and generate expected profits to expand their business operations. It also gives a better understanding of the high-demand markets for the company’s offerings, using which businesses can determine the viability of investing in each of these markets. The importance of demand analysis in the business decision is that it helps firms design their pricing policy. The Firm can choose either to lower or raise a product’s price by observing the trend of consumer demand for that product. Producers can’t fix the price for their products without first understanding the market demand for them. These are reasons why I think demand analysis is essential for businesses
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What is the most important thing to remember when writing a draft (apex)
A. Use the spelling and grammar checks
B. Write quickly without over thinking
C. Write in phrases, not in sentences
D. Look for mistakes in subject-verb agreement
Answers
Answer:
B. Write quickly without over thinking
Explanation:
(APEX)
just took the quiz
Write quickly without over thinking is the most important thing to remember when writing a draft.
Thus, the correct option is B.
What is a draft?An initial version of a piece of writing or written document that is frequently reviewed before verification is referred to as a "draft."
A written order of payment from one party (the drawer) to another (the drawee) instructing them to pay a specific amount to a third party (the payee) on or before a specific date is an example.
You can rethink and rewrite your thoughts after you draft them by putting them on paper. You will be able to determine where further information and supporting proof are needed by doing this.
It will also help you determine whether the concepts you are providing appear logical and whether your argument is clear.
The full paper will be sent along with the final draft. Your writing ought to appear polished by the time you complete the final draft. Grammar and spelling mistakes, fragmented sentences, weak or nonexistent paragraph transitions, and other first draft flaws should all be eliminated.
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Define monopoly is this correct answer
Answers
A monopoly is a market structure that consists of only one seller or producer. A monopoly limits available substitutes for its product and creates barriers for competitors to enter the marketplace. Monopolies can lead to unfair consumer practices.
From the UDSM organizational structure, use concrete examples to elaborate five communication routes that may arise during communication in the institution
Answers
examples of communication routes that may arise in any institution:
1-Upward communication: This communication route is from subordinates to superiors.
2-Downward communication: This communication route is from superiors to subordinates.
3-Horizontal communication: This communication route is between individuals or departments at the same level of authority.
4-Diagonal communication: This communication route is between individuals or departments at different levels of authority and not in a direct line of authority. An example in a university setting could be a student association communicating with the university administration on issues affecting student welfare.
5-External communication: This communication route is between the institution and external entities such as government agencies, donors, or other organizations. An example in a university setting could be the university's public relations office communicating with the media to promote the institution's research or community outreach activities.
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In San Francisco, city regulations cap taxi licenses at 1500, creating a system in which demand for taxis exceeds supply and customer service is inadequate. Group of answer choices Strength Weakness Opportunity Threat
Answers
Answer: Opportunity
Explanation:
SWOT simply stands for the strengths, the weaknesses, the opportunities, and the threats that a particular business may face. Strengths are the attributes that are necessary to achieve organizational goals and to be successful.
Weaknesses are the attributes that re detrimental to the success of the company or achieving organizational goals.
Opportunities are the external factors that are favorable which can give a competitive advantage to an organization or allow the organization achieve its goals. Threats could hinder the success of the company.
Based on the analysis, the answer is Opportunity.