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Calculations based on the 20% hurdle rate -Present value of the cash inflows $ _____________________. Calculations based on the 20% hurdle rate -Present value of the cash inflows $ _____________________. Calculations based on the 20% hurdle rate -Present value of the cash inflows $ _____________________. Calculations based on the 20% hurdle rate -Present value of the cash inflows $ _____________________.

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$1,402,650.
Annual...

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Planning assumptions related to ________________________________ shown on the statement of income deal with objectives related to volume, price and product mix.

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Match the words with the term. -assessed value


A) financial statements
B) guarantee for credit
C) property taxes
D) can be sold for
E) sold under duress

F) A) and E)
G) B) and E)

Correct Answer

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Which of the following is a quantitative planning assumption?


A) the unemployment rate
B) technological conditions
C) an ethical environment
D) government regulations

E) B) and D)
F) B) and C)

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How is book value calculated?


A) by deducting the accumulated depreciation from the original cost of the asset
B) by adding the original cost of the asset to the annual depreciation
C) by deducting the original cost of the asset from the depreciation
D) by adding the accumulated depreciation to the original cost of the asset

E) B) and C)
F) A) and D)

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The marketing plan usually includes the analysis of the consumer, the product description and pricing strategies.

A) True
B) False

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To calculate the value of publicly traded companies, analysts would have to use the number of common shares issued and the share ___________________________ price.

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If Halstrom Company was liquidated, the creditors would obtain 50% of the trade receivables, 40% of the inventories and 60% of the non-current assets. Calculations related to the book value of the company: -The equity is $ ________________________. If Halstrom Company was liquidated, the creditors would obtain 50% of the trade receivables, 40% of the inventories and 60% of the non-current assets. Calculations related to the book value of the company: -The equity is $ ________________________.

Correct Answer

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-Value of the trade receivables at the end of the project is $ _____________________. -Value of the trade receivables at the end of the project is $ _____________________. -Value of the trade receivables at the end of the project is $ _____________________.

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$72,000.
Trade rec...

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The market value of a business is essentially the same as its book value.

A) True
B) False

Correct Answer

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If Halstrom Company was liquidated, the creditors would obtain 50% of the trade receivables, 40% of the inventories and 60% of the non-current assets. Calculations related to the book value of the company: -The total liabilities are $ ________________________. If Halstrom Company was liquidated, the creditors would obtain 50% of the trade receivables, 40% of the inventories and 60% of the non-current assets. Calculations related to the book value of the company: -The total liabilities are $ ________________________.

Correct Answer

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A capitalization rate is a discount rate used to find the present value of a series of future receipts.

A) True
B) False

Correct Answer

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Industry multipliers can be used as standards to determine the value or worth of a business.

A) True
B) False

Correct Answer

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Which of the following is a classic example of market value?


A) the supermarket
B) the stock market
C) the common market
D) the oligopoly market

E) A) and B)
F) B) and D)

Correct Answer

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Scanning the environment in the valuation process is a financial method used during the planning process for the purpose of pinpointing how much potential investors are willing to pay for a business.

A) True
B) False

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Both, current assets and non-current assets should be reassessed in order to determine the market value of a business.

A) True
B) False

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Calculations based on the 10 % cost of capital -Present value of the ending value of the assets is $ ____________________. Calculations based on the 10 % cost of capital -Present value of the ending value of the assets is $ ____________________. Calculations based on the 10 % cost of capital -Present value of the ending value of the assets is $ ____________________.

Correct Answer

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$751,685.
Ending v...

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To determine the purchase price of a business, you have to compound the future value of its cash inflows.

A) True
B) False

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What is market value?


A) the total assets shown on the financial statements
B) the book value of the asset shown in an annual report
C) the price of the asset shown on the statement of financial position
D) the price at which a business or asset can be sold

E) B) and D)
F) B) and C)

Correct Answer

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The stock market is a classic example that describes the value of assets in a company's books.

A) True
B) False

Correct Answer

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Showing 41 - 60 of 152

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