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2 years ago

What is a reason one discounts future cash flows as part of the absolute valuation process?

Business

1 answer:

Brut [27]2 years ago

4 0

Answer:

c. Investors prefer cash flows today to cash flows in the future

Explanation:

As we know that the future profits are unpredicted and non-certain so here the investor should prefer the cash flows for today for cash flows to be done in the future. In addition to this, the discount future cash flows should have the part in the absolute valuation process

Therefore the option c is correct

And, the rest of the options are wrong

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pogonyaev

I wanna say d would be the answer but it could also be banking services

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2 years ago

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3. Joe's Burrito Cart sits on a busy street corner. Customers line up to get Joe's hot burritos. In order to comply with regulat

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2 years ago

On January 1, 20Y2, Hebron Company issued a $175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual p

Olegator [25]

Answer and Explanation:

The journal entries are shown below:

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To interest payable $14,000

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To cash $43,830

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To interest payable $6,253

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2 years ago

You have been working on a new entrepreneurial venture with a few friends for the past year. Everyone’s efforts are really start

brilliants [131]

Answer:

A. determining a few key ideas and how to best sequence them.

Explanation:

The effective communication is one in which the speaker is able to disseminate his ideas to the listener correctly. The panel of successful entrepreneur is interested in investing in the venture. The meeting is limited to 15 minutes so we should cover only key points and focus on their benefits of investing. The Entrepreneur has time to listen key ideas and its upon us to best sequence those ideas which leave a positive impact on the panel.

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2 years ago

Playtown Corporation purchased 75 percent of Sandbox Corporation common stock and 40 percent of its preferred stock on January 1

Nesterboy [21]

Answer:

Elimination Journal.

Retained Earnings $210,000 (debit)

Common Stock $ 150,000 (debit)

Investment in Sandbox Corporation $270,000 (credit)

Non-Controlling Interest $90,000 (credit)

Explanation:

When dealing with consolidation of Financial Statements, the Equity and Retained Earning in the Subsidiary has to be eliminated from the records whilst the Investment in Subsidiary and the Non-Controlling Interest in Subsidiary are recognized.

Elimination of the common items in consolidation is done by the use of Pro-forma Journals.

Goodwill or Gain on Bargain Purchase are also recognized on the date of acquisition of subsidiary.

Goodwill is the excess of Purchase Price and Non-Controlling interest over the Net Assets Acquired.While Gain on Bargain Purchase is the excess of Net Assets Acquired over Purchase Price and Non-Controlling interest.

Elimination Journal.

Retained Earnings $210,000 (debit)

Common Stock $ 150,000 (debit)

Investment in Sandbox Corporation $270,000 (credit)

Non-Controlling Interest $90,000 (credit)

8 0

2 years ago