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3 years ago

Identify the types of goods or services that indigenous(informal) bookkeeping they provide to their customers?

1 answer:

3 0

Informal or indigenous bookkeeping system is defined as the system where a user makes only one entry to enter a business financial transaction. This is regarded as a “single entry system”. The type of services they rovide include a daily summary of cash receipts and a monthly record of receipts and expenses.

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Decker Tires' free cash flow was just FCF0 = $1.32. Analysts expect the company's free cash flow to grow by 30% this year, by 10

Alborosie

Answer:

d. $34.87

Explanation:

We need to calcualte the value of the company. This is done by addingthe present vbalue of the future free cash flow of the firm.

FCF0 = 1.32 (current accounting period)

FCF 1.32 + 30% = 1.716

FCF2 FCF1 + 10% = 1.716 x 1.1 = 1.8876‬

FCF3 FCF + 5% = 1.8876 x 1.05 = 1.98198‬

From here after we use the gordon model:

$\frac{divends}{return-growth} = Intrinsic \: Value$

WACC = 9%

grow = 5%

we use FCF instead of dividends: 1.98198

$\frac{1.98198}{0.09-0.05} = Intrinsic \: Value$

Value of the future cash flow 49,5495

Now, as this are in the future we must adjust using the present value of a lump sum:

$\frac{1.716}{(1 + 0.09)^{1} } = PV$

PV 1.5743

$\frac{1.8876}{(1 + 0.09)^{2} } = PV$

PV 1.5888

$\frac{49.5495}{(1 + 0.09)^{2} } = PV$

PV 41.7048

Total: 1.5743 + 1.5888 + 41.7048 = 44,8679‬

Now we adjust for shrot term investment and debt outstanding:

vresent value of the future cash flow 44,8679‬

short term investment: 4.0000

debt outstanding <u> (14.000) </u>

Net: 34.8679

6 0

2 years ago

D'Anconia Copper is an all-equity firm with 60 million shares outstanding, which are currently trading at $20 per share. Last mo

katrin [286]

Answer:

20m

Explanation:

To calculate the number of outstanding shares we need to calculate market capitalization value first. After calculating market capitalization value we are going to divide the difference in market capitalization value by share price.

DATA

share price = $20

Debt involved = 200m

Cash = 200m

Solution

Number of outstanding shares (after the transaction of shares repurchase) = Difference in market capitalization / Per share price.

Number of outstanding shares = (1200m - 800m) / 20

Number of outstanding shares = 400m / 20

Number of outstanding shares = 20m

Working

Market capitalization (after the repurchase of existing shares) = Shareholders' funds - Debt involved - Cash.

Market capitalization = (60m * 20) - 200m- 200m.

Market capitalization = 1200m - 200m - 200m

Market capitalization = $800m.

6 0

2 years ago

UBS buy-side analyst Christopher Dixon is following a mature telecommunications company TFI Inc in 2016. UBS estimates 1.5 for T

Pachacha [2.7K]

Answer:

The required return on equity is 17%.

Explanation:

The required rate of return is the minimum return required by the investors to invest in a stock. The required rate of return is calculated under the CAPM approach based on the the stock's beta, the risk free rate and the market risk premium. The formula for the required rate of return is,

r = rRF + beta * rpM

r = 0.05 + 1.5 * 0.08

r = 0.17 or 17%

3 0

2 years ago

Your annual sales are $240,000. The sales are spread evenly over four quarters. What are your sales in each quarter?

horrorfan [7]

Answer:

60000

Explanation:

240,000/4

6 0

3 years ago

Robert Wilkins has prepared the following list of statements about process cost accounting. Identify each statement as true or f

Alex17521 [72]

Answer:

Identification of True or False Statements:

1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion.

A. True

2. A process cost system is used when each finished unit is indistinguishable from another.

A. True

3. Companies that produce soft drinks, movies, and computer chips would all use process cost accounting.

A. True

4. In a process cost system, costs are tracked by individual jobs.select between

False

5.Job order costing and process costing track different manufacturing cost elements.

B. False

6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead.

A. True

7. Costs flow through the accounts in the same basic way for both job order costing and process costing.

A. True

8. In a process cost system, only one work in process account is used.

A. True

9. In a process cost system, costs are summarized in a job cost sheet.

B. False

10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the equivalent units produced during the period.

A. True

Explanation:

A process costing system is a method of collecting and assigning manufacturing costs to the units produced. It is used by companies that produce similar or identical units of product in batches employing a consistent process. The unit cost is arrived at by averaging units produced to the total cost of the process.

5 0

2 years ago