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xz_007 [3.2K]
2 years ago
10

Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a

building at a cost of $1,100,000 that is currently appraised at $1,300,000. The equipment originally cost $580,000 and is currently valued at $327,000. The inventory is valued on the balance sheet at $270,000 but has a market value of only one-half of that amount. The owner expects to collect 97 percent of the $155,200 in accounts receivable it is owed. The firm has $11,100 in cash and owes a total of $1,400,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm?
Business
1 answer:
Dovator [93]2 years ago
4 0

Answer:

$523,644

Explanation:

The computation of the market value of this firm is shown below;

Asset at realizable value      amount ($)

Building appraised value       $1,300,000

Equipment current value        $327,000

Inventory Market value ($270000 ÷ 2)  $135,000

Accounts receivables ($155,200 × 97%) $150,544

Cash        $11,100

Total assets gross available  $1,923,644

(-) Owings                            -$1,400,000

The Market value of the firm        $523,644

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klasskru [66]

Answer:

The correct answer is A. The Mars Climate Orbiter crashed on the surface of Mars because one program output thrust in terms of foot-pounds, and another program expected thrust to be expressed in terms of newtons.

Explanation:

The Mars Climate Orbiter was NASA’s unsuccessful mission to study the Martian climate, part of the Mars Surveyor 98 program. The MCO was created as a satellite-translator for the Mars Polar Lander lander, and after the latter ceased to function, it was supposed to study the Martian climate.

The Mars Climate Orbiter was destroyed when a navigation error caused the probe to be improperly elevated as it entered orbit. The vehicle was destroyed by the friction and stresses in Mars' atmosphere. An investigation showed that some data for the rocket system were calculated in English units (pound-force-second) while the navigation team expected SI units (Newton-second).

6 0
2 years ago
Dawn Corp. uses a standard cost system. During the year, both the labor rate variance and the labor efficiency variance were unf
Kisachek [45]

Answer:

Option A is the correct answer (Increases - Increases)

Explanation:

If Dawn had allocated the variances to work in progress rather than on cost of goods sold. Current ratio would increases and the net income would increase also. This is because writing off the variances to cost of goods sold would automatically result into a lower operating income than if it was either prorated to work in progress, finished goods, and cost of goods sold.

8 0
2 years ago
Applicants for positions at a product distribution site are required to demonstrate the ability to drive a forklift and operate
FromTheMoon [43]

Answer:

The correct answer is b. recruitment and selection .

Explanation:

In the recruitment process, all the information of the employee, his experience, studies, skills, hobbies, family circle, expectations, aspirations, etc. is collected. From this moment on, a series of tests are carried out to determine that what has been previously stated is true, as well as simulating situations to know their behavior in the face of challenges of a different nature. In the particular case, technical skills in forklift driving and machine skills are required, which requires verification and practice processes to determine the suitability of the candidate to successfully execute this position.

3 0
2 years ago
Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity
Stella [2.4K]

Answer:

11.36%

Explanation:

According to the scenario, computation of the given data are as follows,

Debt = 45%

Common equity = 55%

YTM = 12%

Tax rate = 25%

WACC = 10.30%

So, we can calculate the cost of equity by using following formula,

WACC = Debt × YTM (1 - Tax rate) + Common Equity × Cost of Equity

By putting the value, we get

10.30% = 45% × 12% × (1 - 25%) + 55% × Cost of Equity

0.103 = 0.45 × 0.12 ( 0.75) + 0.55 × Cost of Equity

0.103 = 0.0405 + 0.55 × cost of equity

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So, Cost of equity = 0.1136 or 11.36%

4 0
2 years ago
1. Which of the following ratios use de-levered net income? (check all that apply)
notka56 [123]

Answer:

The ROA (Return on Assets) and the Return on Sales are the ratios which use the de-levered net income.

Explanation:

The shareholders want to evaluate or measure the return without any effects of the interest expense. De- levered net income is required to alter the net income so that it can be added back it to the interest expense.

The ratio which using De-levered net income are the ROA that is Return on assets and the Return on Sales because it is used to measure the return.

6 0
2 years ago
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