Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

problem1. Wall Inc. forecasts that it will have the free cash flows (in term of millions) which are shown below. The weighted average cost of capital is 14% and the free cash flows are anticipated to continue growing at 12.5% after Year three. The firm has $55 million of debt and 50 million shares outstanding, what is firm's estimated market value per share?

Year 1 - FCF of -$20
Year 2 - FCF of $48
Year 3 - FCF of $54

problem2. Musgrave Corporation has a fixed operating cost of $46,000 and variable costs which are 30% of the current sales price of $2.15.

At a price of $2.15, Musgrave sells 40,000 units. Musgrave can raise sales by 10,000 units by cutting its unit price from $2.15 to $1.95 however variable cost per unit will not change. Must it cut its price?

problem3. The accounts of the Weston Inc. Point out the following changes in long term assets and capital for past year:

1) 50,000 shares of common stock were sold at $25 per share

2) $2 million in bonds matured and were retired

3) Dividends of $1million were paid

4) Net fixed assets declined by $200,000

5) Net income was find outd to be $ 2 million

6) Depreciation expense was $ 1.5 million

What was the decrease or increase in net working capital? (Hint: changes in the net fixed assets incorporate changes in the both gross fixed assets as well as accumulated depreciation)

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93829

Have any Question? 


Related Questions in Financial Accounting

1 bloomington inc exchanged land for equipment and 3800 in

1. Bloomington Inc. exchanged land for equipment and $3,800 in cash. The book value and the fair value of the land were $104,200 and $89,700, respectively. Bloomington would record equipment and a gain/(loss) of: Equipme ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference) "accounting methods" please respond to the following: • Evaluate the likely impact on a firm's va ...

Briefly describe a health care provider with which you are

Briefly describe a health care provider with which you are familiar and how that organization should position its offerings. Provide specific examples to support your response. Referring to the same health care provider, ...

Assignmentbullwhen a company owns inventory it has to

Assignment • When a company owns inventory, it has to decide how to consistently value the inventory sold and on hand. Four inventory valuation methods are available to help the organization effectively value its invento ...

Assignmentintroductionannual report analysis projectis

Assignment INTRODUCTION Annual Report Analysis Projectis designed to get you familiar with a real company's financial statements and disclosures. The purpose of the project is for student to be able to identify the discl ...

Explain the circumstances under which each of the following

Explain the circumstances under which each of the following types of ownership would be most desirable. Give reasons for your responses. A. Joint tenancy B. Tenancy in common C. Tenancy by the entirety 2. Which of the un ...

Cnsider the following optimization problemmax x1

Consider the following optimization problem: Max: X1 + X2 Subject to: -4 X1 + 4 X2 -8 X1 + 10 X2 >= 15 X1, X2 > 0 Part a: What is the optimal solution to the problem? Part b: Now suppose that X1 and X2 must be integers. ...

Assignmentsplit-offparentco sells street vending carts and

Assignment Split-Off ParentCo sells street vending carts and has been in business for 10 years. The subsidiary, SubCo, has been in the business of selling refrigerated vending carts for 8 years. You are a 50% partner of ...

Question 1brisky corporation had net sales of 2400000 and

Question 1 Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2014. Expenses for 2014 were cost of goods sold $1,450,000; administrative expenses $212,000; selling expenses $280,000; an ...

Describe the steps in the exporting process and each of the

Describe the steps in the exporting process and each of the instruments that facilitate exporting. What are export management companies and what are export trading companies? What purposes do they serve and in what way a ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro