PLI, Inc. has a Debt to Equity Ratio of 3:1. After tax cost of debt is 5% while cost of equity is 10%. The Board of Directors of the company decided to sell 100% of the company for Php 1 Billion. Compute for the projected monthly average earnings assuming an EVA of Php 57,500,000. ANSWER: 10,000,000 provide the solution please
Q: Mr. DEE has owned a modest triplex for a number of years, and all three units have been rented durin...
A: Standard Deduction:The term "standard deduction" refers to the piece of pay that is not subject to a...
Q: Check r The Bomb Pop Corporation sold ice cream equipment for $17,900. The equipment was originally ...
A: Gain (loss) on the sale of the Equipment = Sales value - Net Book value where, Net Book value = Pur...
Q: You make deposits of $300 each year for the next 17 years at 5 % compounded annually. How much is in...
A: Annual deposit (P) = $300 Interest rate (r) = 5% Period (n) = 17 Years
Q: $60,000 $120,000 50,000 110,000 45,000 105,000 30,000 90,000 20,000 80,000 $205,000 $505,000 minimum...
A: Average rate of Investment is the average net income earned on the average investment amount Net Pre...
Q: Accounting 20!: Journal Entries Weida Surveying Inc., provideș land surveying services. During Septe...
A:
Q: On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in...
A: ERNST CONSULTINGIncome StatementFor the month ended October 31 Revenue Consultin...
Q: BTS Corporation provided the following balances in its trial balance for the year ended December 31,...
A: Cost of goods manufactured - Cost of Goods Manufactured is the total cost incurred to manufactured g...
Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the...
A: An annuity-immediate means where payments are made at the end of the prescribed period.
Q: Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On Au...
A: Income statement: The income statement shows the company's revenues and expenses earned during the p...
Q: On 17 June 2020, RM7,000 was saved in a bank that offered 6.6% simple interest per annum. Find the a...
A: Solution Concept Under exact simple interest number of days taken in a year is 365 days Given Da...
Q: Diane’s Designs is a small business run out of its owner’s house. For the past 6 months, the company...
A: Variance analysis is one of the technique of management accounting, under which actual data is compa...
Q: Management at C. Pier Press has decided to allocate costs of the paper’s two support departments (ad...
A: Cost allocation is a process of allocating overhead cost of service department to the operating depa...
Q: Starstruck Company is a retailer of Italian furniture and has five major product lines. At year-end,...
A: >NRV or Net Realizable value is used to determine the inventory value to be reported using the "l...
Q: Using the previous table, enter the correct factor for three periods at 5%: Future value x Factor =...
A: Solution We know Present value = future value * discounting factor 5% is the discounting rate in ...
Q: c) A lawn mower machine has a scrap value of RM6,900 at the end of 10 years. The book value at the e...
A: Depreciation is the decrease in the value of fixed asset with the passage of time due to wear and te...
Q: K. Canopy, the proprietor of Canopy Services, withdrew $6,200 from the business during the current y...
A: In a partnership firm, partners introduce capital, executes the business, generates profits & wi...
Q: payments of P1,000,000 each year for 5 years plus interest Kalibo Bank loaned P5,000,000 to Caticlan...
A: 1.Computation of loan impairment loss for 2023: Amount January 1, 2024 Collection (1,000,000 ...
Q: a. An analysis of WTI' Insurance policies shows that $2,400 of coverage has expired. b. An Inventory...
A: Adjusted trial balance is prepared by management for its own use. It is not part of financial statem...
Q: Whispering Winds Inc. is a construction company specializing in custom patios. The patios are constr...
A: >There are two methods of cost accumulation: #1: Process Costing, where each process has its ...
Q: RAMCO had revenue of $250,000, total expenses of $200,000, and it paid dividends of $20,000. Based...
A:
Q: n of February 2022. d: the Prepaid Rent 3 Fun in February 20: Rent
A: Journal entries refer to the concept of documenting all the transactions of a company in its books.
Q: Create a Job Order Cost Sheet for cookie business
A: A job order cost sheet accumulates the expenses charged to a particular task. it's miles used inside...
Q: The following data summarize the operations during the year. A. Purchase of raw materials on account...
A: Journal entry A journal entry is the act of maintaining or producing records of any economic or non-...
Q: Carlos is a resident citizen. He maintains a savings account deposit with the BPI-Baguio City Branch...
A: Solution Given Carlos is a resident citizen Interest income from saving account deposit =6000 F...
Q: 1 3 4 6 7. 8 17 ..... Jun. 1) Jenna Aracel, the owner, invested $100,000 cash, office equipment with...
A: The journal entries are prepared to record day to day transactions in four column book as debit one ...
Q: Ly engage in discussi e11 strategy is employed rming groun technique
A: Decision making refers to the procedure of making the choices through assessing, identifying the dec...
Q: Please list The potential accounting errors or operating problems that might have caused the unexpec...
A: Solution Introduction to the concept...
Q: Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of...
A: There are different types or methods for inventory valuation. The few common methods are the FIFO me...
Q: P6-6. Ancient Times Corp., a closed corporation and selling its shares to ar investor. The statement...
A: 1. EBITDA = Net income + Income tax + Interest + Depreciation + Amortization Given: Net Income = P22...
Q: Dash Company adopted a standard costing system several years ago. The standard costs for the prime c...
A: Note: As per our guidelines, only the first three subparts will be answered. d. Materials price va...
Q: In a job-order costing system, manufacturing overhead applied is recorded as a debit to: Work in Pro...
A:
Q: Required: What is the cost per unit transferred to finished goods inventory for each of the three m...
A: Process costing refers to the allocation of direct costs and indirect costs to a manufacturing proce...
Q: QUESTION 8 Grandview Ltd acquired 100% of the issued capital of Electro Ltd on 1 July 2021 for $110,...
A:
Q: 13. Selling price per unit ₱25 Number of units sold 15,000 Contribution margin...
A: Selling price = P25 Number of units = P15000 Contribution margin = 30% Net income = P50,000
Q: PROBLEM 4-8 On January 1, 2020, P Company acquired 80% of S Company for P2,000,000. The fair value o...
A:
Q: The Wizarding Company uses the Process Cost System and the Average Costing Method. Materials and Con...
A:
Q: 1.New CEO is quite domineering and dictates accounting issues. Answer the following question a.ls th...
A: Since you have asked multiple sub parts, we will solve the first three sub parts for you. If you wan...
Q: Date RR# Vendor Name Amount Explanation Troy Trucks Pierce Products P75,985 Purchase of a new forkli...
A: Adjusting Journal Entry The purpose of providing the adjusting journal entry to include all the nece...
Q: Total Liabilities of Munimuni Company amounts to P400,000 which is 40% of the total assets. How much...
A: Owner's equity = total assets - liabilities ...
Q: Exercise 1-8 Using the accounting equation LO A1 Determine the missing amount from each of the separ...
A: A Basic Accounting equation is given as: Assets = Equity + Liabilities Interpretation: All asse...
Q: Grandview Ltd acquired 100%% of the issued capital of Electro Ltd on 1 July 2021 for $110,000 At tha...
A: Grandview Ltd has acquired 100% of Electro Ltd's capital. So, the journal entries for the above tra...
Q: 29. Lion Company purchased inventory from Dove Corporation for P120,000 on October 4, 2020, and reso...
A: SOLUTION FORMULA GROSS PROFIT = SALES - COGS.
Q: San Jose Company operates a Manufacturing Division and an Assembly Division. Both divisions are eval...
A: When it is related to transfer price, (a) When the full capacity is not utilized, then variable pric...
Q: THIS QUESTION REQUIRES AN ESSAY STYLE ANSWER Timing is very important when preparing the end of fina...
A: Services: Services (theoretical) are act or use for which a shopper, firm, or government will pay. E...
Q: Tax Drill - Section 179 For his business, McKenzie purchased qualifying equipment that cost $212,000...
A: Taxable income refers to the sum amount of money earned by an entity on which a percentile tax is im...
Q: Uptown Company used the perpetual method to record inventory transactions for the current year. Inve...
A: Cost of goods sold includes all the cost which is directly associated with the production of the goo...
Q: Required information Use the following information for the Exercises below. (Algo) 1 [The following ...
A:
Q: Problem 13-10 (AICPA Adapted) On September 30, 2021, a fire destroyed most of the merchandise invent...
A: SOLUTION WORKING NOTES GROSS PROFIT RATE ON COST = (2250000/6750000)*100 = 33.33% PERCENTAGE FOR SAL...
Q: The following standards for variable overhead have been established for a company that makes only on...
A: Variable overhead efficiency variance = (standard hours allowed - actual hours worked) x standard Va...
Q: Steph Company’s direct labor costs: Standard direct labor hours 30,000 Actual direct labor ho...
A: Labor variance type of variance that focuses on the rates of labor and the hours of labor. in this v...
SPLI, Inc. has a Debt to Equity Ratio of 3:1. After tax cost of debt is 5% while
Compute for the projected monthly average earnings assuming an EVA of Php 57,500,000.
ANSWER: 10,000,000
provide the solution please
Step by step
Solved in 2 steps
- A. ABC Corp., expects a net income of Php. 250,000. The company has 10% of 5,000,000 Debentures. The equity capitalization rate of the company is 10%. 1. Calculate the value of the firm and overall capitalization rate according to the net income approach (ignoring income tax). 2. If the debenture debt is increased to Php. 750,000 and interest of debt is change to 8%. What is the value of the firm and overall capitalization rate?12. Ernesto, Ine has projected average earnings every year of Php 100,000,000. Debt to Equity Ratio is 3:1 After tax cost of debt is 5% while the cost of equity is 10%. The Board of Directors of the company decided to sell the company for 1,000,000,000 computes for the Economic Value Added (EVA). a) Php 37,500,000.00 b) Php 50,000,000.00 c) Php 0 d) Php 25,000,000.00SPLI, Inc. has a Debt to Equity Ratio of 3:1. After tax cost of debt is 5% while cost of equity is 10%. The Board of Directors of the company decided to sell 100% of the company for Php 1 Billion. Compute for the projected monthly average earnings assuming an EVA of Php 57,500,000.00 a. 37,500,000 b. 10,000,000 c. 120,000,000 d. 100,000,000
- PT. Sentosa Raya uses its own capital and debt capital. The agreed cost of debt is 10% and the interest to be paid on the debt is Rp. 3,000,000. The company earned an operating profit of Rp. 24,000,000 per year. The expected return is 30% per year. With these data, determine the value of the company and the company's cost of capital!PROBLEM A. A. ABC Corp., expects a net income of Php. 250,000. The company has 10% of 5,000,000 Debentures. The equity capitalization rate of the company is 10%. 1. Calculate the value of the firm and overall capitalization rate according to the net income approach (ignoring income tax). 2. If the debenture debt is increased to Php. 750,000 and interest of debt is change to 8%. What is the value of the firm and overall capitalization rate? B. Yuki's projected net operating income of Php. 85,000. It has Php. 3,00,000, 5% debentures. 1. Calculate the value of the firm according to 10 net opening income and overall capitalization rate is 10%. 2. If debenture debt is increased to Php. 100,000. What is the value of the firm and the equity capitalization rate?XYZ Ltd., experts a net income of $150,000. The company has 10% of 500,000 debentures. The equity capitalization rate of the company is 10%. (a) Calculate the value of the firm and overall capitalization rate according t the net income approach (ignore income tax). (b) If the debenture debt is increased to $750,000 and interest of debt is change to 9%. What is the value of the firm and overall capitalization rate?
- Turtle Co. has a total debt ratio of 0.78. The company is considering building a new plant for $75 million. When the company issues new equity, it incurs a flotation cost of 9%. The flotation cost on new debt is 4%. Calculate the cost of the plant, including flotation costs. (Round to 2 decimals and enter the full value,e.g. 5 million must be entered as 5,000,000)IXYZ Ltd., experts a net income of $150,000. The company has 10% 500,000 debentures. The equity capitalization rate of the company is 10%.g(a) Calculate the value of the firm and overall capitalization rate accordint the net income approach (ignore income tax).(b) If the debenture debt is increased to $750,000 and interest of debt inchange to 9%. What is the value of the firm and overall capitalizatiorate?The CFO of Yang Centers has asked you to calculate the EPS if the company were to change its capital structure from 0 percent debt to 90 percent debt. Calculate the EPS, rounded to the nearest $ 0.01, given the following information: Book value per share $ 8.75 Cost of debt 10 percent EBIT $ 500,000.00 Tax Rate 30 percent Total Capital $4,000,000.00
- 4. PCC Inc has a debt-to-equity ratio or 3:1. After tax cost of debt is 5% while cost of equity is 10%. The board of directors of the company decided to sell 100% of the company for P1,000,000,000. Compute the projected monthly average earnings assuming an EVA of P57,500,000. a) P37,500,000 b) P10,000,000 c) P100,000,000 d) P120,000,000 e) P130,000,000 5. QC Corp. declared its dividend consistent with its dividend yield of 0.10. This year, QC Corp's stockholder received P0.75 for every share they have in the company. The company's market value per share when the dividend was declared should be? a.) P7.50 b.) P5.70 с.) РО.13 d.) PO.75 e.) P7.60Target Corporation (TGT) has $2.14 million in assets that are currently financed with 100% equity. TGT’s EBIT is $385,000, and its tax rate is 25%. If TGT changes its capital structure to include 50% debt, its return on equity will increase. Assume the interest rate on debt is free. (justify your answer with numerical calculation) True FalseRian Corporation is currently working without using debt. The estimated operating profit per year is $16.065,180.00 while the equity capitalization rate (ke) is 18% pa. In the coming year, Rian is considering replacing some of his shares with a debt of $50 million, with an interest rate of 15% per annum. Question: a. Calculate the value of own capital capitalization (CS), the total capitalization value of the company (V), and the overall capitalization rate (ko) using the Net Income Approach. b. Calculate the amount of equity capitalized value, total capitalization value of the company, and overall capitalization rate using the traditional approach, if additional debt causes the equity capitalization rate (ke) to increase to 20%. c. Draw a graph of the two approaches.