The value of the company's equity is $702,588.24, and the company's entire worth is $843,105.89.
To determine the value of the company's equity using the flow to equity method, we need to calculate the free cash flow to equity (FCFE) and discount it at the cost of leveraged equity.
Calculate the FCFE:
FCFE = Net Income - (1 - Tax Rate) * (Interest Expense - Debt Repayment)
Given:
Net Income = Revenue - Cost of Goods Sold - General and Administrative Expenditures
Revenue = $400,000
Cost of Goods Sold = $225,000
General and Administrative Expenditures = $45,000
Tax Rate = 24%
Interest Expense = $14,000
Debt Repayment = 0 (assumed to be zero)
Net Income = $400,000 - $225,000 - $45,000 = $130,000
FCFE = $130,000 - (1 - 0.24) * ($14,000 - 0) = $130,000 - 0.76 * $14,000 = $119,440
Calculate the value of equity:
Value of Equity = FCFE / Cost of Leveraged Equity
Given:
Cost of Leveraged Equity = 17%
Value of Equity = $119,440 / 17% = $702,588.24
Calculate the company's entire worth:
To determine the company's entire worth, we need to consider both the value of equity and the value of debt.
Given:
Debt-to-Equity Ratio = 20%
Value of Equity = $702,588.24
Debt = Debt-to-Equity Ratio * Value of Equity = 20% * $702,588.24 = $140,517.65
Company's Entire Worth = Value of Equity + Debt = $702,588.24 + $140,517.65 = $843,105.89
Therefore, the value of the company's equity using the flow to equity method is approximately $702,588.24, and the company's entire worth is approximately $843,105.89.
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areacash equivalents include a.u.s. treasury bills. bmercial paper. c.money market funds. d.all of these choices are correct. g
Cash equivalents includes U.S. treasury bills. commercial paper, money market fundsall of these. The correct option is D all of these.
Cash equivalents are investment instruments with good credit quality and high liquidity that are designed for short-term investing. Along with stocks and bonds, cash equivalents, usually referred to as "cash and equivalents," is one of the three major asset classes in financial investing. The risk and return characteristics of these securities are minimal.
Treasury bills issued by the US government, bank CDs, bankers' acceptances, corporate CP, and other money market products are examples of cash equivalents. These financial products all frequently have short maturities, a very liquid market, and low risks.
One of the most crucial financial system health indicators for a corporation is its cash equivalents. Because it indicates how a firm is able to pay its debts over a short period of time, a company's ability to generate cash and cash equivalents can also be used by analysts to determine if it is a smart idea to invest in a specific company.
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Professional Responsibilities: Responding to a Visitor's Question About Status of a Client
As a professional, it is important to be mindful of confidentiality and ethical considerations when responding to inquiries about the status of a client. In order to protect the privacy of the client, it is important to obtain their permission before discussing any information with a third party.
If a visitor inquires about the status of a client, it is important to respond in a professional and courteous manner. One way to do this is to inform the visitor that you cannot provide any information about the client without their consent. If the visitor is a family member or authorized representative of the client, you can ask for proof of their identity and authorization before providing any information.
It is important to remember that the client's privacy and confidentiality should be protected at all times. If you are unsure about how to respond to a visitor's question or if you have any concerns about confidentiality, it is best to consult with a supervisor or a legal professional for guidance.
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Quote cite and explain from a trustworthy source a summary of the Republican Party's primary
election in 2016. Please identify and explain anything outstanding. Was there anything controversial
with their process?
= Closed Primaries. In general, a voter seeking to vote in a closed primary must first be a registered party member.
DECISION MAKING Suppose the Tracers decide they want to adjust their budget
so they can save for a special summer vacation that will cost $5,000. How would
you suggest they go about revising their budget to meet their goal?
Explanation:
The tracers will have to adjust their budget before planing for a summer vacation for that they will have to be saving $1000 each every month .To revive their budget to meet their goal they will have to be planing their budget every day like $50
The auditors are required to confirm bond holdings directly with the bondholders. Group of answer choices true false
False. Auditors are not typically required to confirm bond holdings directly with bondholders.
The confirmation process in auditing primarily involves obtaining third-party confirmations to corroborate the existence, accuracy, or completeness of certain financial information or transactions. This usually includes confirming balances or transactions with external parties such as banks, customers, or suppliers.
When auditing bond holdings, auditors would typically obtain confirmation directly from the custodian or trustee responsible for holding and administering the bonds on behalf of the bondholders. They would confirm the details of the bonds held, such as the quantity, face value, interest rate, maturity date, and ownership information, with the custodian or trustee.
While auditors may interact with bondholders during the audit process for various reasons, direct confirmation with individual bondholders is not a common practice in auditing bond holdings.
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Explain contestability in a economic market (economics questions)
Answer:
Market contestability refers to the ease with which new firms can enter and leave a market. A perfectly contestable market is one with no entry or exit costs. Barriers to entry and exit reduce the degree of contestability.
Explanation:
"The process of allowing a broker to originate and close a loan in his or her own name before transferring the loan to the lender providing the funds is called:a. Wet settlementb. Table fundingc. Securitizationd. Dry settlement"
The process of allowing a broker to originate and close a loan in his or her own name before transferring the loan to the lender providing the funds is called table funding.
Table funding is a process in which a mortgage broker originates a loan in their own name and uses funds from a warehouse line of credit to close the loan. Once the loan is closed, the broker transfers it to the lender who will provide the permanent financing for the loan. This process allows the broker to retain control over the loan until it is sold to the lender, which can help to reduce costs and simplify the loan process.The process of allowing a broker to originate and close a loan in his or her own name before transferring the loan to the lender providing the funds is called:a. Wet settlementb. Table fundingc. Securitizationd. Dry settlement"
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Which part of effective leadership deals with maintaining equity?
Answer:
the part where you have to lead
Explanation:
Which of the following would be considered Capital Gains?
a. Sale of a stock
b. Sale of a bond
c. Receipt of dividends
d. Answers a and b
e. Answers a and c
The options that would be considered Capital Gains are answers a and b, which are the sale of a stock and the sale of a bond. Both transactions involve the sale of investment instruments and can result in a gain or loss that is subject to capital gains tax.
When an individual sells a stock or a bond at a higher price than the original purchase price, the difference is considered a capital gain. This gain is taxable and falls under the category of capital gains. The tax treatment for capital gains varies depending on factors such as the holding period and the tax regulations of the specific jurisdiction.
On the other hand, the receipt of dividends (option c) is not considered capital gains but rather investment income. Dividends are periodic payments made by companies to their shareholders as a distribution of profits. While they are taxable, dividends are generally subject to different tax rates and rules than capital gains.
In summary, the sale of a stock (a) and the sale of a bond (b) are considered capital gains, while the receipt of dividends (c) is not. Therefore, the correct answer is option d, "Answers a and b."
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true or false: a listing licensee must be particularly careful not to say anything about the property or the price of the property which might harm the owner's interests.
According to the given information, the question asked is True: a listing licensee must be particularly careful not to say anything about the property or the price of the property that might harm the owner's interests.
A listing licensee must be particularly careful not to say anything about the property or the price of the property that might harm the owner's interests. This means that they should not disclose any negative information about the property that could potentially lower its value or discourage potential buyers.
Additionally, they should not discuss any pricing strategies that could lead to a lower selling price than what the owner desires. The listing licensee must act in the best interest of the property owner and protect theirinterests throughout the selling process.
As a representative of the property owner, the licensee must protect the owner's best interests and not disclose any information that may negatively affect the property's value or the owner's ability to negotiate.
Being cautious with their words ensures that the owner's interests are safeguarded and promotes a successful transaction.
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What are the approaches for learning Economics effectively?
Which action would be most likely to affect whether scroll bars appear in a Word document?
A) saving the document
2
B) renaming the document
C)moving the document to a new location
-D)zooming in or out on the document
Answer:
-D
Explanation:
I'm pretty sure it's zooming in or out on the document
Explain the importance of profit to the economy.
Answer:
Explanation:
Profit is the surplus revenue after a firm has paid all its costs. ... In a capitalist economy, profit plays an important role in creating incentives for business and entrepreneurs. For an incumbent firm, the reward of higher profit will encourage them to try and cut costs and develop new products
Cross Company reported the following results for the year ended 31 December 2020 and 2021, its first two years of operations: Pre-tax financial income 2020 $750,000 2021 $ 600,000 In 2020, Cross Company made $100,000 sales on account and received the cash payment in 2021. Cash collected from customers are taxable in the period when they are received. There is no other temporary or permanent difference from 2020 to 2021. The enacted tax rate is 20%. Required: (Support with detailed calculations.) a. b. What is Cross Company's taxable income in 2020 and 2021, respectively? (4 marks) Discuss whether the sales on account create a deferred tax asset, a deferred tax liability, or neither for 2020. (5 marks) Prepare the journal entries for income tax in 2020. (6 marks) c.
Taxable Income Calculation for Cross CompanyIn the given situation, Cross Company has provided the following results for 2020 and 2021:Pre-tax financial income in 2020 is $750,000Pre-tax financial income in 2021 is $600,000The sales on account in 2020 were $100,000.
Hence, there is no effect of this sale on taxable income for the year 2020.Taxable income in 2020 = Pre-tax financial income in 2020Taxable income in 2020 = $750,000Taxable income in 2021 = Pre-tax financial income in 2021 + sales on account received in 2021Taxable income in 2021 = $600,000 + $100,000Taxable income in 2021 = $700,000b. Sales on Account and Deferred Tax Asset/LiabilityThe sales on account do not create any deferred tax asset or deferred tax liability in 2020. Since the sales are taxable only when the payment is received and they are already accounted for in the year 2021, there is no effect on the taxable income in 2020. Income Tax in 2020Income tax is calculated on the taxable income of the company.
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Briefly explain the laws that apply to the promotion of this product/service.
Explanation:
Product promotion is the act of advertising a good or service with the goal of increasing sales. Many companies use different techniques to promote their products through a vast array of communication media.
Which of the following is an example of an open college?
A. A community college
B. A four-year private college
C. A four-year private university
D. A state university
Answer:
A
Explanation: because its a community and as i see it open means anyone can go hope i got it right and hope this helps
You have been hired as the new controller for the Radiance Company. Shortly after joining the company in 2024, you discover the following errors related to the 2022 and 2023 financial statements: a. Inventory at December 31,2022 , was understated by $6,000b. Inventory at December 31,2023 , was overstated by$9,000c. On December 31,2023 , inventory was purchased for $3,000. The company did not record the purchase until the inventory was paid for early in 2024. At that time, the purchase was recorded by a debit to purchases and a credit to cash.
These errors need to be corrected to ensure the accuracy of the financial statements. An adjustment of $6,000 needs to be made to increase the inventory balance at the end of 2022, an adjustment of $9,000 needs to be made to decrease the inventory balance at the end of 2023, and a journal entry needs to be made to record the inventory purchase of $3,000 in 2023.
Here's a step-by-step explanation to address the errors you've mentioned:
1. Inventory at December 31, 2022, was understated by $6,000:
To correct this error, you need to increase the inventory balance at December 31, 2022, by $6,000. This will also require an adjustment to the retained earnings balance for 2022.
2. Inventory at December 31, 2023, was overstated by $9,000:
To correct this error, you need to decrease the inventory balance at December 31, 2023, by $9,000. This will also require an adjustment to the retained earnings balance for 2023.
3. Inventory purchased for $3,000 on December 31, 2023, was not recorded until paid for in 2024:
To correct this error, you need to record the inventory purchase in the 2023 financial statements. You should debit inventory and credit accounts payable for $3,000 on December 31, 2023. Then, when the payment is made in 2024, you should debit accounts payable and credit cash for $3,000.
By following these steps, you can correct the errors related to the 2022 and 2023 financial statements for the Radiance Company.
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Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. She projects that total revenue would be $535,000. In addition, she would have to quit her $50,000 per year job as an accountant.
What would your aunt's accounting profit be at the end of the year?
What would your aunt’s economic profit be at the end of the year?
Should your aunt open the store?
Your aunt's accounting profit at the end of the year would be $535,000 - $500,000 - $50,000 = -$15,000.
Her economic profit would be lower or even negative considering the opportunity cost of quitting her $50,000 per year job. Based on these calculations, your aunt should carefully consider whether opening the store is financially viable.
Accounting profit is calculated by subtracting explicit costs (such as rent and stock expenses) from total revenue. In this case, the accounting profit would be $535,000 - $500,000 - $50,000 = -$15,000, indicating a negative accounting profit.
However, economic profit takes into account both explicit costs and implicit costs, including the opportunity cost of alternative options. In this scenario, the implicit cost is the foregone income from your aunt's accounting job, which amounts to $50,000 per year. Therefore, the economic profit would be -$15,000 - $50,000 = -$65,000, implying a larger loss.
Based on the negative accounting and economic profit, opening the store may not be advisable from a financial perspective. It suggests that the costs outweigh the revenues, and the venture may result in financial losses.
Your aunt should carefully evaluate the feasibility of the business, considering factors such as market conditions, competition, potential growth, and alternative employment opportunities, before making a decision.
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In the text, it states that "the laws of ________________ used
within the context of economic models allow environmental effects
to be accounted for."
In the text, it states that "the laws of environmental economics used within the context of economic models allow environmental effects to be accounted for."
Environmental economics is a branch of economics that studies the relationship between the economy and the environment. It seeks to understand how human activities, such as production and consumption, affect the natural environment and how these environmental effects can be mitigated or incorporated into economic decisions.
By integrating environmental economics into economic models, policymakers and researchers can better account for the environmental consequences of their actions. This includes the evaluation of costs and benefits associated with environmental policies, the allocation of resources for environmental protection, and the assessment of market-based approaches to environmental management.
For example, using environmental economic principles, economists can calculate the social cost of pollution, which reflects the total cost to society of emitting pollutants into the environment. This can help governments design effective policies to reduce pollution levels, such as implementing a carbon tax or establishing a cap-and-trade system.
Additionally, environmental economics can help in evaluating the efficiency and sustainability of natural resource use. By considering factors like scarcity, economists can ensure that resources are allocated optimally, leading to long-term economic growth and environmental preservation.
In conclusion, the laws of environmental economics enable the integration of environmental factors into economic models. This allows for a more comprehensive understanding of the interplay between the economy and the environment, ultimately promoting sustainable development and responsible resource management.
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When irobot introduced new robot models that would clean gutters and mop floors, this innovation represented which type of market growth strategy?
a. Diversification
b. Product development
c. Market segmentation
d. Market development
e. Market penetration?
Answer:
b. Product development
Explanation:
When irobot introduced new robot models that would clean gutters and mop floors, this innovation represented the product development type of market growth strategy.
HURRY! 20 points! Which of the following is the most important requirement for career advancement in art design?
creativity
interpersonal skills
experience
education
Answer:
creativity
Explanation:
i'm in art design and my teacher always pushes for creativity and neatness
Answer:
creativity or skill
Explanation:
Do many companies like it when you look like a fool?
A. No. All companies just want to help us.
B. Definitely! The job of many companies is to make money, not to do what is right for you... If you look like a fool, they make more money.
C. No. The government protects you against companies when they try to make you look like a fool.
D. Yes. All companies try to make you look like a fool.
Answer:
A
Explanation:
I dunno what to say lol-
No. The government protects you against companies when they try to make you look like a fool. Therefore option C is correct.
What is A Company?A company is a legal body created by a group of people to conduct and manage a business enterprise, whether it be commercial or industrial. Depending on the corporate legislation of its jurisdiction, a business may be set up in a variety of ways for tax and financial liability purposes.
When a corporation registers with the government and under the provisions of the companies act, it can begin conducting business. A memorandum of association, board of directors, share prices, shareholders, name, office, phone number, address, and other legal documents are required as part of the protracted registration process for a corporation.
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A depreciating Canadian dollar will haveeffect on Prime Outlets in Niagara Falls, NY USA O a positive O a negative O no
A depreciating Canadian dollar will have a positive effect on Prime Outlets in Niagara Falls, NY, USA.
When the Canadian dollar depreciates, it means that the U.S. dollar becomes relatively stronger.
As a result, Canadian consumers will find it more attractive to shop at U.S. outlets like Prime Outlets in Niagara Falls, as their purchasing power increases.
This leads to higher sales for the outlets, creating a positive effect.
The reason for this is that a depreciating Canadian dollar means that it will be cheaper for Canadians to travel to the US and shop at Prime Outlets.
This is because when the Canadian dollar is worth less, Canadians will get more US dollars for their money.
As a result, they will have more purchasing power and be able to buy more goods at Prime Outlets.
Moreover, since Niagara Falls is located near the Canadian border, it is a popular destination for Canadian tourists.
When the Canadian dollar is depreciating, it becomes even more attractive for Canadians to visit Niagara Falls and shop at Prime Outlets.
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what are taxes .....
Answer: Taxes are compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.
Explanation: Taxes are mandatory contributions collected by governments.
The Internal Revenue Service (IRS) collects federal income taxes in the United States.
There are many forms of taxes and most are applied as a percentage of a monetary exchange (for example, when income is earned or a sales transaction is completed).
Other forms of taxes, such as property taxes, are applied based on the assessed value of a held asset.
Understanding what triggers a tax situation can enable taxpayers to manage their finances to minimize the impact of taxes.
Hope this was helpful
What are the three types of money you should use when paying for college, and what type of money are scholarships and grants?.
Loans, grants, and work-study are the three categories of federal financial aid.
Grants are typically offered based on financial need, whereas scholarships are merit-based and given to students based on their academic performance, extracurricular involvement, field of study, and other factors.
Financial aid is cash that you are given or lent in order to help you pay for college. Financial aid that you don't have to pay back includes grants and scholarships. They are known as gift aid because of this.
Some college finance methods are:
Try to get a scholarship. Obtain a college grant by applying. Like scholarships, grants for college are based on financial need and are not repaid.Federal student loans and private student loans.Work study programmes at colleges.To know more about college scholarship refer to the given link:
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Select the correct answer.
Ahmed has been running a laundry service in his neighborhood for the past eight years. He picks up soiled clothes and delivers washed and ironed clothes at the customers’ doorsteps. A transporter who offers to pick and deliver customer clothes at a cheaper rate than his current transporter approaches him for a business deal. What do you think Ahmed should do in such a case?
A.
immediately discontinue services of the current transport person
B.
continue the services of the current transport person forever
C.
delay the payments of the current transport person so that he willingly discontinues his services
D.
wait until the contract with the current transport person ends before using the new transport person
Answer:
D) wait until the contract has ended
Which of the following statements about corporate culture is true A. Corporate culture evolves over time B. Corporate culture is intangible C. Corporate culture is based on the accumulated history of the organization D.Corporate culture can have a strong impact on a company's success E. All the above
Answer: All of the above
Explanation:
Corporate culture simply refers to the beliefs, customs and the attitudes that is shared in s particular company. It should be noted that the corporate culture shapes the behaviors of employees in an organization.
It helps in guiding the behaviors of workers and they can either be unwritten rules or those that are documented. They can be based in an organization's history and can evolve with time.
Corporate culture is intangible and can have a strong impact on the company's success. Therefore, the answer to the question is All of the above.
If you get 20% off of an item that is now $320, what was the original price before the discount?
How important is money
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
when computing the expected return on a portfolio of stocks, the portfolio weights are based on the:
When computing the expected return on a portfolio of stocks, the portfolio weights are based on the proportion of each stock's investment within the total portfolio. The expected return is a measure of the anticipated average return that an investor can expect to earn from the portfolio over a certain period of time.
To calculate the expected return of a portfolio, the individual expected returns of each stock are multiplied by their respective portfolio weights and then summed. The portfolio weights reflect the allocation of funds or assets across different stocks within the portfolio. These weights are typically expressed as a percentage or a decimal value. By assigning appropriate weights to each stock in the portfolio, the calculation of the expected return takes into account the relative importance or contribution of each stock to the overall portfolio performance.
Stocks with higher weights have a greater impact on the portfolio's expected return compared to stocks with lower weights. In summary, when computing the expected return on a portfolio of stocks, the portfolio weights are used to determine the proportion of each stock's investment within the portfolio. These weights play a crucial role in calculating the overall expected return by considering the relative significance of each stock in the portfolio's performance.
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