What is the terminal value of the company

Assignment Help Accounting Basics
Reference no: EM133033287

Question - Cargotek is a shipping company with $100m in earnings before interest and taxes that is expected to have earnings growth of 10% for the next five years. At the end of the fifth year, you estimate the terminal value using a multiple of 8 times operating income. What is the terminal value of the company?

Reference no: EM133033287

Questions Cloud

Describe the nature of the information selected : Problem: As a customer, the information system of amazon which do you think needs to be improved?
Discuss any additional disclosures in financial statements : Discuss any additional disclosures in the financial statements and footnotes that the auditor should recommend to his client
Impact international business decisions : 1. Discuss how the political economy is changing and how this might impact international business decisions in the future. Is it easier or harder for internatio
Explain communication process model : Identify and briefly explain each of the seven key components of the 'Communication Process model'. To ensure high marks you should enhance
What is the terminal value of the company : Cargotek is a shipping company with $100m in earnings before interest. What is the terminal value of the company
Explain hofstede cultural dimensions : You are part of a marketing team that works for an athletic footwear company with an established customer base in the United States.
Explain strategic quality management : Explain strategic quality management. In your response, please share any experiences you have had with organizations implementing a strategic quality
Determine their QBI deduction : Their modified taxable income is $389,800 (this is also their taxable income before the deduction for qualified business income). Determine their QBI deduction
Creating a recipe for ethical behavior : -Explain ingredients and steps why you think that these choices are the best picks. Possible Ingredients:

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.

  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!

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