The adjusting entry of interest rates on december 31st for this note receivable would be: $7,000.
What are interest rates?
In relation to the amount lent, deposited, or borrowed, the amount of interest payable each period is expressed as an interest rate (called the principal sum). The amount lent or borrowed, as well as the interest payment, frequency of compounding, and the period of time during which it is lent, deposited, or borrowed, all affect how much interest will be charged overall. The rate calculated over a twelve-month period is the annual interest rate. Other interest rates are applicable over longer time frames, such a month or a day, although they are typically annualized.The interest rate has been described as "an measure reflecting the preference... for a dollar of now [income] over a dollar of future income."
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wilson widgets, inc. is currently manufacturing more widgets than there is demand. the firm decides to store the excess inventory. unfortunately, as wilson widgets begins to move the inventory, the widget specifications change and the stored widgets become obsolete. what type of waste does this situation illustrate?
The widget specifications change and the stored widgets become obsolete, the type of waste that this situation illustrate is Overproduction.
Overproduction: Producing more than what is required by customers, businesses generate more. Prior to consumption, inventory could become outdated. The act of generating more than is required or too much of something: Due to overproduction, the corporation is in a severe financial situation. Numerous of these subsidies support excessive production.
Example:
Unstable production schedule is an example of overproduction in lean manufacturing. inaccurate demand data and projections. industrial plants and warehouses with too many employees.
Before the buyer even purchases the product, overproduction wastes resources through excessive resource utilisation. Most frequently, excessive production in manufacturing results in time and resource waste. Waste is any time or resources spent producing a product that goes above and beyond the needs of the consumer.
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jerry recently was offered a position with a major accounting firm. the firm offered jerry either a signing bonus of $23,000 payable on the first day of work or a signing bonus of $26,000 payable after one year of employment. assuming that the relevant interest rate is 10%, which option should jerry choose?
Assuming that the relevant interest rate is 10% in a major accounting firm, the option to choose is the signing bonus of $26,000 payable after one year of employment.
What is accounting?Accounting, usually referred to as accounting, is the measurement, processing, and communication of financial and non-financial data regarding economic entities like firms and corporations. Accounting, sometimes referred to as the "language of business," measures the outcomes of an organization's economic actions and disseminates this data to numerous stakeholders, including investors, creditors, management, and regulators. Those who work in the accounting industry are known as accountants. Frequently used interchangeably are the words "accounting" and "financial reporting."
Financial accounting, management accounting, tax accounting, and cost accounting are some of the subfields of accounting that can be split.
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pat and abe do not sign a contingency for the sale of the buyer's property. however, it is clear that if pat is not able to sell her home, she will not have the downpayment funds necessary to buy abe's home. this is a/an:
pat and Abe do not sign a contingency for the sale of the buyer's property. however, it is clear that if pat is not able to sell her home, she will not have the down payment funds necessary to buy Abe's home. this is a/an: A: Hidden contingency.
Any previously unidentified job site issue that needs to be resolved (or addressed) before the project can proceed is referred to as a hidden contingency. It is anything that is hidden so that the designer would not have had any means of knowing about it when designing the walls, floor, or other finished surfaces. If the plaster or drywall is taken off the walls, for instance, it might be easy to see that there is no insulation there.
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coronado cannot use the income statement as a measure of cash flows because it is calculated on a(n) basis rather than a(n) basis. a. annual; accrual b. annual; cash c. accrual; cash d. cash; accrual
Coronado cannot use the income statement as a measure of cash flows because it is calculated on an accrual basis rather than a cash basis.
What is accrual?Accruals are accounting adjustments used to track and record income earned but not received, or expenses incurred but not yet paid.Accrual accounting is an accounting technique in which an accountant records income and/or expenses as transactions occur or payments are made. The most common examples of accrual accounting are sales on credit, purchases on credit, rent paid, utilities, depreciation, audit expenses, and other similar things.Under accrual accounting, an entity recognizes revenue when earned and expenses when incurred. This is often before (and sometimes after) the money is actually received or spent.To learn more about accrual from the given link :
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coral company issues 6,000 shares of its $5 par value common stock having a fair value of $25 per share and 9,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $297,000. what are the proceeds allocated to the common stock?
Coral company issues 6,000 shares of its $5 par value common stock having a fair value of $25 per share and 9,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $297,000.
=[(6,000 × $25) ÷ [(6,000 × $25) + (9,000 × $20)]] × $288,000
= $130,909.
Shares, also known as stocks, are securities that represent partial ownership of the issuing company. A unit of stock is called a "share" and allows the holder to receive a portion of the company's assets and profits equal to the number of shares held.
Shares represent ownership of the listed company. When you buy stock in a company, you become a joint owner of that company. For example, if a company owns 100,000 shares of him and he buys 1,000 of them, he owns 1% of the company. Equity means a share of ownership in a company. An example stock is 100 shares of Disney Corporation.
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a successful ride-sharing company has decided to raise money for its second phase of expansion by issuing shares of stock and becoming a publicly-traded company, so they create a prospectus for potential investors. what type of stock market transaction is taking place? secondary market offering private placement ipo share buyback
the Type of stock market transaction taking place is IPO.
An initial open offering (IPO) is the method of advertising offers of a private organization to the public in a new stock issuance for the first time. An IPO permits a company to raise value capital from open investors and the move from a private to an public company can be a vital time for a private investors to ultimately realize picks up from their speculation because it regularly incorporates a share premium for the current private investors. In the meantime, it also permits public investors to involve in the advertising. The IPO process comprises of two parts, the primary one is the pre-marketing stage of the advertising, whereas the secondary one is the beginning public offering itself. When a company is curious about an IPO, it'll publicize to investors by requesting private offers to them or moreover make a public explanation to produce interest.
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You pay $0. 25 per name for list a and get a click rate of 5%. You pay $0. 35 per name for list b and get a click rate of 10%. Which list has the lower cost-per-click?.
As long as the units of measurement are the same, a unit rate can be used to compare two rates.
How is a rate transformed into a unit rate?Using a unit rate to represent a rate: Dividing the rate's numerator and denominator by the denominatorList A and B as there were two clicks.List A pays 0.25 dollars and has a 5% clickthrough rate.
Therefore, a click rate of 1% costs $0.25/5, or $0.05.
The same goes for list B.
10% payment done for a click equals $0.35.
As a result, one click payment is 0.35/10, or 0.035.
We can compare the two rates now that they have both been converted to rates per unit click.
List A is 0.05, while List B is 0.035.
List A unit click rate is higher than list B's
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what kinds of industries tend to be better performers in the medium to long term? why? what kinds of industries tend to do poorly in the medium to long term? why?
The financial sector, the industrial sector, and capital goods appear to be on track for success in 2022.Pharmaceuticals are also trying to make a name for themselves, and some experts have bet on cars and real estate, while others have advised against it.
What is an expanding industry?A sector of an economy that grows at a faster rate than the average than other sectors is called a growth industry. The majority of growth industries are brand-new or pioneering sectors that did not previously exist. Demand for brand-new goods and services from businesses in the sector is the driving force behind their expansion. The technology industry is an illustration of a growing industry because of the success of its products, which has resulted in stock market valuations of multibillions of dollars for tech companies.
Characteristics of Growth IndustriesCompanies in an industry that consistently and rapidly increase their sales and invest a lot are two examples of growth industries. This frequently comes with a lot of press hype. Growth industries typically consist of stocks that are risky and relatively volatile. In order to share in the potential substantial gains, investors frequently are willing to take on more risk.
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canada is currently the second largest producer of nickel in the world. the reopening of the world famous voisey's bay mine, which has total resources estimated at 124 million tons of nickel-bearing ore, should give canada a clear:
The reopening of the world famous Voisey's bay mine in Canada should give it a clear comparative advantage.
Since 2005, Voisey's Bay located 35 kilometers south of Nain on the north shore of Labrador, has been producing nickel. The Voisey's Bay Mine Expansion Project was started in July 2015 after Vale's Board of Directors approved the development of the natural deposits. The project created thousands of new job opportunities to support the phases of development and operations. Additionally, it has also increased local communities' economic participation.
By granting access to two distinct subsurface resources, Reid Brook and Eastern Deeps, the roughly $2 billion initiative will safeguard the existence of mining in Canada.
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a monopolistic competitor will engage in advertising in order to: a reduce excess capacity. b collude more effectively with other firms. c decrease marginal costs of production. d increase demand for its product. e produce on the upward-sloping portion of its atc curve.
A monopolistic competitor will engage in advertising in order to d) increase demand for its product.
A monopoly is the type of imperfect competition wherein a dealer or manufacturer captures the majority of the market percentage because of the lack of substitutes or competitors. A monopolistic opposition is a sort of imperfect opposition in which many sellers try to capture the market percentage by way of differentiating their merchandise.
Monopolistic markets are markets where a certain service or product is offered by means of only one enterprise. A monopolistic market shape has the features of a natural monopoly, in which a single agency fully controls the market and determines the supply and charge of a services or products.
Antitrust legal guidelines ensured that those trusts had been dissolved to promote wholesome competition. From a felony angle, is not an excellent monopoly in any of its commercial enterprise gadgets. There are competition for the whole lot from browsers and smartphones to virtual advertising and marketing structures.
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What has prevented you from saving money in the past? based on what you’ve learned, what can you do to change this?.
Whether or not you pick to pay off the very best interest-fee money owed first or pay down the smallest balances first, it is essential that you decide to pay it all off.
The faster you unfastened yourself of debt, the more money you'll lose to meet your financial savings desires.
Every other impediment to saving money can be a lack of economic literacy. It's imperative to enhance your economic knowledge due to the fact that frequently parking all your cash in a financial savings account will now not be enough.
Reasons why you ought to save money
monetary independence.dwelling debt-loose.unforeseen fees.buying a home.shopping for a car or different big-price ticket purchases.medical emergencies.making plans for your retirement.constructing a college fund for your children.Learn more about interest here: https://brainly.com/question/24924853
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distribution in many developing countries is difficult because of the lack of reliable transportation infrastructure due to natural disasters. this is an example of what type of forces affecting global trade?
Licensing. While franchising is an option for service industries, manufacturing industries use licensing the most. In exchange for a fee, a license allows a foreign company to create a company's product in another country.
Which of the following is the primary reason that nations employ the dumping strategy?
The capacity to permeate a market with product prices that are frequently regarded as unfair is the primary advantage of trade dumping. When the products sell below their manufacturing cost, the exporting nation may provide the producer with a subsidy to offset losses.
A country is said to have (a) a trade deficit when the value of its imports exceeds the value of its exports.
Due to the fact that not all nations possess the resources and expertise required to produce certain goods and services, exports and imports are crucial to the growth and development of national economies. However, in order to safeguard their domestic industries, nations impose trade barriers such as import quotas and tariffs.
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a consumer products company reported a 25 percent increase in sales from last year to this year. sales last year were $200,000. this year, the company reported cost of goods sold in the amount of $150,000. what was the gross profit percentage this year?
The gross profit percentage this on the sales of $250,000 and cost of goods sold of $150,000, will be 40%.
Given Information:
Increase in sales = 25%
Sales last year = $200,000
Increase in sales = $200,000*25% = $50,000
New sales = $250,000
Cost of goods sold = $150,000
Gross profit = $250,000- $150,000 = $100,000
Gross profit percentage = $100,000/$250,000*100
= 40%
Gross profit is the total amount of money a business earns after subtracting costs for manufacturing, transporting, and selling its products or services. A company's income statement will show gross profit, which would be derived by deducting cost of goods sold (COGS) from earnings (sales).
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uniquely, a successful lotion manufacturer, sells luxury lotions exclusively for women under the brands uniquely lavish, uniquely luxurious, and uniquely glorious. it has now added uniquely dignified to target a specialized segment of urban men who are particular about their grooming practices. the introduction of uniquely dignified represents multiple choice mass marketing. niche marketing. behavioral targeting. differentiated targeting. undifferentiated targeting.
The introduction of uniquely dignified represents niche marketing.
Niche marketing is defined as directing all marketing efforts to a specific segment of the population. It is critical to understand that the term "niche" does not exist, but is created through smart marketing techniques and identifying what the customer wants.
Niche marketing is a marketing strategy used to target a distinct market segment. A niche market is frequently created by identifying what a customer wants, which can be done if the company knows what the customer needs and then tries to deliver a better solution to a problem that other firms have not presented. A niche market is not a small market; rather, it consists of a specific target audience with a specialized offering.
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1. burton electronics produces radios, computers, and navigation systems. although all high level decisions are made at company headquarters by top management, rapid expansion and increasingly specialized products have caused the company to consider decentralizing into three divisions (i.e., radios division, computers division, and navs division). each division manager would be responsible for costs, revenues, and investments in assets. a) how should the company classify the three divisions, as cost centers, profit centers, or investment centers? explain. (10.2) b) what are the potential advantages of decentralizing? (10.1) c) what are the potential disadvantages of decentralizing? (10.1)
All three centres will be in charge of cost and revenue management. A profit centre is a division that is in charge of managing both costs and revenues. It is the investment centre because all high-level decisions are made at headquarters.
What is revenue?
Revenue is the money earned through routine business operations and is calculated by multiplying the average sales price by the number of units sold. Net income is calculated by subtracting costs from the top line (or gross income). On the income statement, revenue is also referred as sales. Revenue is the money generated into a firm by its operations. Depending on the accounting method used, there are various methods for calculating revenue. Accrual accounting will treat credit sales as revenue for products or services given to the customer. Revenue is recognised even if compensation has not yet received under certain rules.
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The most common form of competition is ________blank, in which many firms compete for customers in a given market but with differentiated products.
The most common form of competition is monopolistic competition blank, in which many firms compete for customers in a given market but with differentiated products.
Monopolistic Competition Market
Monopolistic Competition is a competition with other manufacturers who have similar products, but there are differences between each of them.
This difference is the hallmark of the productsproducts sold by each manufacturer.
The activity of producing these goods is known as product differentiation or product differentiation. Because the products produced are almost similar, each producer will compete in terms of quality, price, and how to market their products.
Monopolistic Competition Market Characteristics
The characteristics of a monopolistically competitive market are as follows:
1. Has a very large number of producers
As in a perfectly competitive market, a monopolistic market has a large number of producers. Due to the large number of producers, each producer has a relatively small market share.
2. There is Product Differentiation
Product differentiation is when a manufacturer produces a product that is slightly different, but similar to the products of its competitors.
In a monopolistically competitive market, when the price of one producer rises while the price of the product of another producer is constant, the demand for that product will fall. Because, consumers will easily find substitute products from these products.
3. Each producer competes in terms of quality, price, and how to market their products
Because products in monopolistic markets tend to be similar, producers will compete in terms of quality, price, and how to market their respective products.
Manufacturers will compete to improve the quality of their products, such as through attractive product designs and services provided to consumers.
4. Producers are free to enter the market
Just like a perfectly competitive market, monopolistic market participants are also free to enter and leave the market.
The free entry and exit of the market means that there are no barriers for new producers who want to sell their products in the market or old producers who want to leave the market.
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the price of a 3-month prepaid forward on the power windows corporation is 140. the forward price for a 3 month forward on power windows corporation is 142. power windows corporation pays quarterly dividends of 5. the next dividend is due in 2 months. calculate the current spot price of the stock of the power windows corporation
Power Windows Corporation stock is now trading for 145 on the spot market.
The cost of delivering an underlying asset, financial derivative, or currency to the buyer of a forward contract at a preset date is known as the forward price. It essentially equates to the spot price plus any additional carrying expenses, such as interest rates and storage fees.
The current market price at which a certain asset, such as a security, commodity, or currency, can be purchased or sold for immediate delivery is known as the spot price.
Forward price = Spot price + Interest - Dividend
140 = Spot price + 0 - 5
Thus,
Spot price = 145
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a bank has tier i capital of $90 million and tier ii capital of $70 million. the bank has total assets of $2,522 million and risk-weighted assets of 2,017.6 million. this bank is
Under-capitalized.
The highest quality capital available to a bank is called Tier I capital, which is mostly made up of share capital and stated reserves. On the other hand, some reserves and specific subordinated debt types make up Tier II capital.
What do banks' Tier I capital and Tier II capital mean?The highest quality capital available to a bank is called Tier I capital, which is mostly made up of share capital and stated reserves. On the other hand, some reserves and specific subordinated debt types make up Tier II capital.A bank must maintain a capital reserve ratio of 8%. For Tier 1 capital, it is currently set at 6%, and for Tier 2 capital, the remaining 2%. The typical method for calculating a bank's capital ratio is to divide its capital by all of its risk-based assets.To arrive at the total risk-weighted assets, the risk weighting is a percentage that is applied to the relevant loans. Divide a bank's Tier 1 capital ratio by its Tier 1 capital.To learn more about Tier I capital refer to:
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according to the corporate governance task force (cgtf), during which phase of the ideal model and framework does the organization plan the specifics of how it will reach its destination?
According to the Corporate Governance Task Force (CGTF), during the Ideal Formation Model and Framework phase, the organization plans specifically how it will achieve its objectives.
Organization is a place or place for a group of people to work together in a rational and systematic, controlled, and guided manner to achieve a certain goal by utilizing existing resources. In general, organizations will utilize certain resources in order to achieve goals, such as; money, machines, methods/methods, environment, human resources, and other resources, which are carried out in a systematic, rational, and controlled manner. Referring to the understanding of the organization, organizational goals do not only focus on achieving the company's vision and mission, but also increasing income that exceeds production costs. This is what distinguishes profit and non-profit organizations.
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firm a and firm b both have total revenues of $200,000 and total costs of $250,000; firm a has total fixed costs of $40,000, while firm b has total fixed costs of $70,000. which of the following statements are true in the short run? a. firm a should operate. b. firm b should operate. c. firm a should shut down. d. firm b should shut down. e. both a and d f. both b and c
Correct option is f which is both b and c
Firm should operate and firm should close respectively.
A has two options: continue operating or stop.
Stay alert: 50K ($200-$250K) in losses, or 40K in losses (fixed costs)
B has two options: continue operating or stop.
Stay alert: 50K ($200-$250K) in losses, then 70K in losses (fixed costs)
Closing is the best option for A, whereas remaining open is the best option for B.
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a comparative balance sheet and income statement is shown for cruz, incorporated.what is the net increase or decrease in the cash account for year 2021?
A comparative balance sheet and income statement is shown for cruz, incorporated. The net increase or decrease in the cash account for year 2021 is $75,400.
What is cash ?Cash is legal tender (currency or coin) that can be used to exchange goods, liabilities, or services.balance sheet may also include the value of assets that can be easily converted into cash quickly, as reported by the company.In finance and accounting, cash refers to readily available money (currency). balance sheet can be held in physical or digital form, or invested in short-term money market instruments. In economics, cash refers only to money in physical form.Cash includes banknotes, coins, bank deposits, money orders and checks. Cash is used to purchase goods and services or to fulfill obligations. Items that do not meet the definition of cash are balance sheet checks and bills receivable.To learn more about cash from the given link :
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after the lehman brothers collapse, the federal reserve stood ready to lend financial institutions funds. when the federal reserve did this, it was acting in its role as a lender of last resort. which type of group has this role? informal institution nongovernmental organization formal institution government agency g
When financial institutions are unable to obtain funds from other sources, they must borrow from the lender of the last resort.
What is financial institutions?
A financial institution (FI) is a firm that deals with finances and monetary transactions such deposits, loans, investment, and currency exchange. Financial institutions include a wide range of financial services business operations such as banks, thrift institutions, insurance firms, brokerage firms, and asset dealers. Almost everyone in a developed economy necessitates the assistance of financial institutions on a regular or at least periodic basis. Most people are served by financial institutions in some way, as business statements are a crucial aspect of any society, with individuals and businesses relying on banking firms for payments and investing. Because banks and other financial institutions play such an important role in the economy, governments believe it essential to control and regulate them.
Lender of last resort provides funds to qualifying financial institutions. The country's Central Bank is usually the lender of last resort. They are known as lenders of last resort because they bail out significant financial institutions in severe financial conditions when it becomes impossible for the institutions to raise capital. The Fed is not a government agency or an informal organization. It is not a ngo because its functions are fundamentally different from those of a ngo. As a result, option a) Formal Institution is the correct answer.
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pederson company reported the following: manufacturing costs $150,000 units manufactured 5,000 units sold 4,700 units sold for $75 per unit beginning inventory 100 units what is the manufacturing cost for the ending finished goods inventory?
The cost for the ending finished goods inventory is $12000
Finished Goods Ending Stock is the number of goods that are available for purchase but have not yet been distributed. Create a budget for these things before beginning production by figuring out the fundamental costs of supplies, direct labour, and overhead.
Manufacturing cost = $150,000
Units manufactured = 5000
Units sold = 4700
Selling price per unit = $75
Beginning inventory = 100 units
Ending inventory in units = Manufactured units - Units sold + Beginning inventory
= 5000 - 4700 + 100
= 400
Amount of ending finished goods inventory = (Cost of goods manufactured/ No. of units manufactured)*No. of ending inventory in units
= (150000/5000)*400
= $12000
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the east company manufactures several different products. unit costs associated with product ord210 are as follows: direct materials $54 direct manufacturing labor 8 variable manufacturing overhead 11 fixed manufacturing overhead 25 sales commissions (2% of sales) 5 administrative salaries 12 total $115 what are the inventoriable costs per unit associated with product ord210?
The inventoriable cost per unit associated with product ord210 is $98.
What are inventoriable costs?Inventoriable costs are described as the costs that are linked with the manufacture of a product and selling them. The constituents of inventoriable costs include factory overheads, direct expenses, direct labor, and direct materials.
Given that,
Direct materials = $54
Manufacturing labor = $8
Variable manufacturing overhead = $11
Fixed manufacturing overhead = $25
Inventoriable costs = Direct materials + Manufacturing labor + Variable manufacturing overhead + Fixed manufacturing overhead = 54 +8+11+25 = $98
It can be concluded that the inventoriable cost per unit associated with product ord210 is $98.
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internal growth rate last year umbrellas unlimited corporation had an roa of 9.6% and a dividend payout ratio of 50.4%. what is the internal growth rate? multiple choice 2.13% 1% 92.16% 5%
The internal growth rate is 5%. IGR is calculated as the Net Income rate Retained Earnings and the Net Income Total Assets. The Retention Ratio ROA = IGR .
The highest rate of growth Income a company can experience without outside funding is known as its internal growth rate (IGR). The sales growth rate that can be supported without external finance is referred to as the internal growth rate. The internal growth rate is significant because it gauges a company's capacity to boost sales and profits without issuing new stock or taking on additional debt, which is particularly crucial for start-ups and smaller enterprises.
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julie orzabal deposits $5000 in a savings account offering 5.125 percent compounded daily. assuming she makes no further deposits, what will be the balance in her account after 5 years?
The balance in her account after 5 years is calculated to be $6460.25 if she deposits $5000 in the saving account.
The balance in her account can be determined by using the formula of compound interest;
A = P[1 + (r/n)]^nt
Here A represents the final amount, P represents the initial balance, r represents the interest rate, n represents the number of times interest was applied per time period and t represents the number of time periods that have passed
As she deposited $5000 in the savings account offering 5.125% compounded daily, substituting these values in the equation as follows;
A = 5000 [1 + (0.05125/365)]^(5)(365)
A = 5000 [1 + (0.000140411)]^1825
A = 5000 (1.000140411)^1825
A = 5000 × 1.29205
A = $6460.25
Hence, the balance in her account will be $6460.25 after 5 years.
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a company purchased new equipment for $60,000. the company paid cash for the equipment. other costs associated with the equipment were: transportation costs, $1,000; sales tax paid $2,000; and installation cost, $2,500. the correct amount to capitalize in the equipment account would be:
The amount to capitalize in the equipment account would be: 65,500
According to IAS 16 Property, Plant and Equipment, an asset's cost consists of:
combined with import taxes and duty the first estimate of the costs of dismantling and removing the item and restoring the place on which it is located, as well as any expenses directly related to transferring the asset to the location and condition required for it to be able to operate as intended by management
In the example, the asset cost $60,000 to purchase, $1,000 was needed for delivery to the site desired by management, $2,000 was needed for sales tax, and another $2,500 was needed for installation in order for the asset to operate as intended by management. As a result, all of these expenses would be 65,000
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how do private equity firms use incentives (both short term cash bonuses and long term equity) to align managements interests with their own, reinforce a sense of urgency with management, keep management focused on key performance metrics and hold management accountable for achieving such targets?
Employees who participate in equity incentive program receive shares in the business they work for. Shares may be granted in the form of bonds, stocks, warrants, or stock options. The most popular and well-known type of employee equity is stock options.
Explain about the private equity firms?A management agreement for private equity firms typically outlines the remuneration plan and the general partner's ownership stake (GP). The carry charge is typically 20% of earnings above a certain threshold return, while the management cost is often in the range of 2%. Typically, the GP holds 1% of the fund.
Employees who participate in equity incentive programmes receive shares in the business they work for. Shares may be granted in the form of bonds, stocks, warrants, or stock options. The most popular and recognized type of employee equity is stock options.
An equity-based incentive plan's primary purpose is to recruit, keep, and motivate people. Companies frequently give shares or units (these terms are used interchangeably above) in the company to employees, partners, directors, contractors, or other individuals as a form of compensation.
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ased on the free cash flow valuation model, the value of weidner co.'s operations is $1,200 million. the company's balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $100 million in short-term investments that are unrelated to operations. the balance sheet also shows $90 million in accounts payable, $120 million in notes payable, $300 million in long-term debt, $50 million in preferred stock, $180 million in retained earnings, and $800 million in total common equity. if weidner has 30 million shares of stock outstanding, what is the best estimate of the stock's price per share? a. $27.67 b. $30.43 c. $33.48 d. $24.90 e. $36.82
The best estimated stock price per share of free cash flow valuation model = $27.67
Free cash flow :
Free cash flows( FCF) from operations is the cash that a company has left over to pay back stakeholders similar as creditors and shareholders. Because Free cash flow represents a residual value, it can be used to help value pots.
Evaluation :
the value of Weidner Co.'s operations = $1,200 million
accounts receivable = $80 million
short-term investments = $100 million
accounts payable = $90 million
notes payable = $120 million
long-term debt = $300 million
preferred stock = $50 million
retained earnings = $180 million
total common equity = $800 million
shares of stock outstanding = 30 million
Now,
The total intrinsic value = value of operation + short-term investments
The total intrinsic value = $1200 million + $100 million
= $1300 million
Thus,
the total value of the equity = Total intrinsic value - Debt - preferred stocks - notes payable
The total value of the equity = $1300 million - $300 million - $50 million - $120 million
= $830 million
therefore,
the stock's price per share = Total value of equity ÷ Total outstanding stock
= 830 million ÷ 30 million
= $27.67.
Hence , the stock price per share = $ 27.67
Stock price :The market price per share of stock, or the" share price," is the most recently price that a stock has traded for. It's a function of request forces, being when the price a buyer is willing to pay for a stock meets the price a dealer is willing to accept for a stock.
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a quick, rough estimate of the time required for money to double can be obtained by dividing which of the following numbers by the compound interest rate? a) 100 b) 72 c) 64 d) 52
Divide 72 by the compound interest rate to get a rough estimate of how long it will take for money to double.
What is interest rate?An interest rate is the amount of interest due per period as a percentage of the amount lent, deposited, or borrowed. The total interest on an amount lent or borrowed is determined by the central sum, the interest rate, the compounding frequency, and the measurement of the time it is lent deposited, or borrowed. An interest rate tells you how much it costs to borrow or how much it pays to save. So, if you're a borrower, the interest rate is the amount you're charged for borrowing money, expressed as a percentage of the total loan amount.To learn more about interest rate, refer to:
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