Answer:
= $52.78 per share
Explanation:
<em>The value of a business can be determined using the free cash flow model. According to this model, the value of a firm is is the present value of its free cash flow discounted at the weigthed average cost of capital (WACC.)</em>
<em>The value of equity is the value of firm less value of other instruments (e.g debt and preferred stocks)</em>
<em>Value of equity = Value of the entire firm - Value of debt </em>
We can work out the the value per share using the steps below:
<em>Step 1</em>
<em>Calculate the total value of the firm</em>
Value of firm = 27.50/(0.1-0.07)
= $916.66 million
<em>Step 2</em>
<em>Calculate the value of equity</em>
<em>Value of equity = Value of the entire firm - Value of debt</em>
= $916.66 million - $125.0 million
=791.666 million
<em>Step 3</em>
<em>Calculate the value per share</em>
Value per share = Value of equity/ units of common stock
=$791.666 million/15 million units
= $52.78 per share
Answer:
Roth IRA account
Explanation:
The best type of account that you should save money in for Retirement is a Roth IRA account. This will allow you to put and save a maximum of $5,500 USD per year which will compound annually with interest and can be redeemed when you retire. Once you redeem your money at the age of 65 1/2 it will be completely tax-free. Meaning you have no liabilities with that money whatsoever and you can simply enjoy your retirement with that money.
Answer: Option A
Explanation: In simple words, return on investment refers to the mount of profit that an investor earns in relation to the cost he or he incurs by undertaking an investment.
It is used as a performance measure to evaluate the efficiency and effectiveness of a project by comparing it with other investments having some characteristics.
Hence from the above we can conclude that the correct option is A .
Answer:
B) overt branding practices
Explanation:
Generation Y is the group of people who were born between 1990s to early 2000s. Probably most commonly known as millennials.
Statistics shown that when it come to choosing a product, millennial tend to choose the individuals that they can trust/admire rather than overt branding practices. This is why online influencers market is really booming among this demographic.
On top of that ., They value the type of advertisement that can objectively define the negative and positive characteristics of a certain product rather than advertising it as if it's 'the best product ever' like commonly done by most companies in the past.
Answer: b) The total amount debited must equal the total amount credited
Explanation:
Journal entries on the debit side must always equal entries on the credit side. This is to fulfil the Accounting requirement of Double Entry where every entry in the books must have an equal and corresponding entry as well.
There can be multiple accounts represented in the journal entry but the amount on the credit side needs to balance with the amount on the debit side.
For example, a good to sold to Hillary by Trump for $30. Trump gives Hillary a discount of 10%. Trump will record that entry as,
DR Cash $27
DR Sales Discount $3
CR Accounts Receivable $30
Notice that the Debit side has 2 accounts but they still add up to the $30 on the Credit side.
