How much should your client pay for this business

Assignment Help Basic Statistics
Reference no: EM132144440

Your client wants to buy a business that provides financial advice to local small businesses. The firm generated $650,000 in cash flows during the previous year, and the discount rate to value firms in this sector is 11%. The firm's cash flows are expected to grow by 5% (which includes 3% for expected inflation). The firm is registered as a corporation, and it is expected to continue operating indefinitely into the future. Based on this information, how much should your client pay for this business?

Reference no: EM132144440

Questions Cloud

What is glude required rate of return : Glude Corp has a market beta of 1.20, a size beta of -0.30, and a value beta of 0.30. What is Glude's required rate of return using the Fama-French model.
Savings account for five years : Mary Smith has $10,000 that she can deposit into a savings account for five years. Bank A compounds interest annually, Bank B twice a year
What could be the possible error : Suppose that you are working with GPS data from an Excel spreadsheet and that you map it in ArcMap.
Compute the number of internal pages : Compute the number of internal pages, at each level, that we "need" (i.e., assume that you can fill the parents to capacity (to the maximum even number of keys)
How much should your client pay for this business : Based on this information, how much should your client pay for this business?
Deposit in his individual retirement : Your client wants to save $500,000 for his retirement. He plans to retire in 20 years. How much must he deposit in his individual retirement
Which of the following characterizes a market order : i. Which of the following characterizes a market order? a) A market order, which is considered a small order, is when 100 shares of a stock are ordered
How that the real data is transferred from the main memory : With neat sketch, explain and show how that the real data is transferred from the main memory to the MBR.
Explain the factors that went into your decision : Disc jockeys must also be able to change playlists when they areused because what is actually played is often different from what isplanned.

Reviews

Write a Review

Basic Statistics Questions & Answers

  Stated purpose of creating a new

Acme performs a government research and development contract with the stated purpose of creating a new "thin" parachute that can be comfortably

  Ethical implications of the use of coercive power

Managers who verbally criticize their subordinates, put them down in front of their coworkers, or use the threat of job loss to influence behavior.

  Create a probability model

(a) Create a probability model and find Andy's expected profit per game.

  How many different ways can these parking spots be assigned

Each month the company randomly assigns the parking spots to their employees. How many different ways can these parking spots be assigned?

  What would be the critical value

Using table 4 in the back of the book, what would be the critical value (rejection value) to test the hypothesis that the means are different?

  A dam can be lowered by 4 meters using spillway a in 4

question a dam can be lowered by 4 meters using spillway a in 4 hours or by spillway b in 6 hours also lowering the

  Ceo of the organization needs to forcast the proportion

To forcast the sample size within 0.02 with 90 percent confidence. The CEO of the organization needs to forcast the proportion of Canadians who own their house.

  Regression in an area of personal or professional interest

An example or application of correlation or regression in an area of personal or professional interest. Was correlation or regression used

  Log values for the three sets of data against time

(a) Graph the three sets of data against time. (b) Graph the log values for the three sets of data against time.

  What are the properties of a random sample

According to a front-page article in The Wall Street Journal, 30% of all students in American universities miss classes due to drinking. If 10 students are randomly chosen, what is the probability that at most 3 of them miss classes due to drinki..

  Calculate the slope and y-intercept

Calculate the slope and y-intercept for the linear regression equation for these data

  How information could be used to detect fake expense report

The first digits of randomly selected expense amounts actually follow Benford's law. According to Benford's law, what's the expected value of the first digit?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd