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2 years ago

11

The accounting measure of a firm's equity value generated by applying accounting principles to asset and liability acquisitions

is called ________.
A) book value
B) market value
C) liquidation value
D) Tobin's q

1 answer:

cupoosta [38]2 years ago

4 0

Answer:

A) book value

Explanation:

Assets at book value is the value of company's asset as recorded in its boos(balance sheet).

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You just opened a brokerage account, depositing $3,500. You expect the account to earn an interest rate of 9.652%. You also plan

Afina-wow [57]

Answer:

$108,583.98

Explanation:

Given:

Initial deposit = $3,500

Rate = 9.652%

You also plan on depositing $4,500 at the end of years 5 through 10.

Required:

What will be the value of the account at the end of 20 years, assuming you earn your expected rate of return?

First calculate the future value of first installment, $3500 at end of year 20, since the amount was not deposited at once:

$3500 * PVIF(0.9652, 20) = 22,100.35$

Calculate the future value of annual deposits at end of year 10:

Given, N = 6 years )i.e from 5 to 10 years)

I/Y = 9.652%

PV = 0

PMT = $4,500

FV(9.652%, 6, 4500, 0)

FV = $34,416.63

Calculate the future value of annual deposits at end of year 20:

Given, N = 10 Years (from end of year 10, to year 20)

PV = 34,416.43

I/Y = 9.652%

FV = 34,416.43 * PVIF(0.9652, 10)

FV = $86,483.63

The total future value at end of year 20:

Future value of initial deposit + Future Value of annual deposits

= $22,100.35 + $86,483.63

= $108,583.98

The value of the account at the end of 20 years = $108,583.98

5 0

2 years ago

How could the respective roles of these two labour organizations influence actions by other parties to address the concerns rais

Lapatulllka [165]

The correct answer to this open question is the following.

Unfortunately, you did not include the name of the two labor organizations. There is no further context, reference, text, or article.

However, trying to help you we can comment on the following.

Probably, you are referring to the Ontario Federation of Labor (OFL) and the Ontario Public ServiceEmployees Union (OPSEU).

If that is the case, we say that these two labor organizations have a major role in supporting the employees of Tim Horton's branches, after the response, they have taken in Ontario regarding the increase of the minimum wage in that Canadian province.

The power of these labor organizations created awareness of the employee's situation when different media channels covered the news about the demonstrations. This coverage was nationwide, alerting all Canadians about the situation in some branches of this famous and cherished Canadian fast-food restaurant.

This situation does not only grab the attention of public opinion but from the government and political parties that can get into the discussion, affecting the public image and reputation of Tim Horton.

7 0

2 years ago

Which of the following stages of the new-product development process is the first filter, which serves to eliminate new-product

Pavlova-9 [17]

Answer:

The answer is: E) Idea screening

Explanation:

Idea screening is the second stage (comes after idea generation) of the new product development process. Its main purpose is to select "good ideas" and filter out "bad ideas".

The following questions usually help in defining what ideas can classify as good or bad.

Do we really need to introduce a new product?
Can our existing facilities produce the new product, or what is needed for them to be able to?
Can we sell the new product with our existing marketing network, or what do they need to be able to do so?
When will the new product generate profit?

Many times the concept of good or bad idea depends on the organization itself. If the answers to the questions above are positive and the company is able to go along with the project, then the new product should continue to stage 3 (concept testing).

3 0

2 years ago

The Two Dollar Store has a cost of equity of 11.9 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40

Bezzdna [24]

Answer: 9.03%.

Explanation:

Given: The Two Dollar Store has a cost of equity of 11.9 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40 percent.

Debt to equity ratio is .54

i.e. $\dfrac{debt}{equity}=\dfrac{0.54}{1}\ ...(i)$

Adding denominator to numerator on both the sides, we get,

$\dfrac{debt+equity}{equity}=\dfrac{1.54}{1}\\\\\Rightarrow\ \dfrac{equity}{debt+equity}=\dfrac{1}{1.54}$

i.e. Weighted equity = $\dfrac{1}{1.54}\ ....(ii)$

From (i)

$\dfrac{equity}{debt}=\dfrac1{0.54}\$

Adding denominator to numerator on both the sides we get,

$\dfrac{equity+debt}{debt}=\dfrac{1+0.54}{0.54}$

$\dfrac{equity+debt}{debt}=\dfrac{1.54}{0.54}$

Thus, weight of debt= $\dfrac{1.54}{0.54}$

Now,

Weighted average cost of capital=(Weight of equity) × (cost of equity)+(Weight of debt)×(Cost of debt)×(1-tax rate)

$\dfrac{1}{1.54}\times (0.119)+\dfrac{0.54}{1.54}\times(0.062)\times(1-0.40)\\\\=0.07727+0.02174(0.60)\\\\=0.07727+0.02174(0.60)\\\\=0.07727+0.013044\\\\=0.090314\approx9.03\%$

Hence, the weighted average cost of capital is 9.03%.

4 0

2 years ago

Investors expect that Amalgamated Aircraft Parts, Inc. will pay a dividend of $2.50 in the coming year. Investors requirea 12% r

ELEN [110]

Answer:

$50

Explanation:

Dividend discount model (DDM) is used to calculate intrinsic value of a stock. Since the dividends are expected to grow indefinitely, the formula will be as follows;

Price (P0) = D1 / (r-g)

where D1 = Next year's dividend = 2.50

r = required rate of return = 12% or 0.12 as a decimal

g = dividend growth rate = 7%

Price (P0) = 2.50/(0.12-0.07)

P0 = 2.50 /0.05

P0 = $50

5 0

2 years ago