User Account

All Pages

What is the terminal value of the business

Assignment Help Accounting Basics
Reference no: EM132588791

Free Cash Flow               100

Growth rate                      2%

Tax Rate                           1%

Cost of Capital                   5%

Debt-to-total value                50%

Question 1: Given the data in the above table, what is the terminal value of the business (using the growing perpetuity formula)?

Option 1: Review Later

Option 2: 3400

Option 3: 3366

Option 4: 3000

Option 5: 3600

Reference no: EM132588791

Questions Cloud

Design an outline international marketing strategy : Design an outline international marketing strategy aimed at achieving the set objectives. In the report, creativity, realism and precision will be rewarded
How diction and imagery in the poem : Discuss how diction and imagery in the poem of the child who was shot dead by soldiers in nyanga by Ingrid Jonker reveals
How much should put into account first : What would his profit be if he cleared his positions when the stock price dropped to $40 and IBM had paid $5 dividends per share in the mean time?
What do you do if the unlv library : What do you do if the UNLV Library does not have access to a book or article that you need? Select all correct answers. (Multiple options)
What is the terminal value of the business : What is the terminal value of the business (using the growing perpetuity formula)? Debt-to-total value, Cost of Capital, Free Cash Flow
Record the transactions in general journal : 9th Sold equipment totalling RM12,000 to GB Football Ltd on 60 days credit. Record the above transactions in General Journal and prepare "T" ledger accounts
Information about a natural disaster : You want to find out more information about a natural disaster that occurred in the last six weeks.
Explain the ways capital allocation process takes place : Explain the ways, capital allocation process takes place through financial markets. And a short note on the role of financial markets in the economy.
Make necessary journal entries for each case : Merton estimated that the building's life would be 20 years and the scrap value at the end of 20 years. Make necessary journal entries for each case

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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