uestion: How much is the projected terminal cashflow (cashflow after year 4 to infinity) from Western Mountain Pizza?
Q: in the year ended the partner withdrawal closed in Select one: a. parter capital b. income state...
A: The right answer is option d. partner loan
Q: A local government has funded a public project with the following data. Initial investments $5,00...
A: Solution: A) AW of costs = P(A/P, i, n) + A - F(A/F, i, n) = 5,000,000(A/P, ...
Q: Q. No. 5: Can company purchase its own shares under the Companies Act 2017. Explainwith reference to...
A: Treasury stock is defined as the shares which issuing company stores in its own treasury, in short, ...
Q: May I ask for help with this question? I got an answer of 97, 500 (Rounded Up) Please check. On Janu...
A: Amortization expenses on 2003 = Old amortization + new patent amortization = (500,000/8)*1 + (210,00...
Q: Viper Construction’s days sales outstanding is 50 days (on a 365-day basis). The company’s accounts ...
A: Sales:- A sales is defined as the transaction between the customer and seller, in which commodity is...
Q: ABC Service company provides shuttle service between four hotels near a Hospital and an internationa...
A: Break Even Point in number of fares/ units = Total Fixed Cost / Contribution per Unit Contribution p...
Q: If liabilities increase by £3,000 during a given period and owner's equity decreases by Ei,000 durin...
A: The company's aim will be to increase the profitability of the company. The profits can be arrived f...
Q: Effective discount rate. Determine the equivalent rate of discount that would be lost if a company...
A: A supplier suppliers the goods to its customer and offer a cash discount if the customer makes the p...
Q: Tanner-UNF Corporation acquired as a long-term investment $240 million of 8% bonds, dated July 1, on...
A: 1&2 Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021.&am...
Q: Muscat Company has the following data for the year ended 2020, compute the cost of goods manufacture...
A: Computation of the cost of goods manufactured is as follows:
Q: Discuss any data integrity, internal control and reporting concerns associated with XBRL
A: Data integrity states to the validity as well as accuracy of the data over its lifecycle. In short, ...
Q: Ramakrishnan, Inc., reported 2015 net income of $40 million and depreciation of $2,900,000. The top ...
A: Cash flows from operating activities shows all cash inflows and cash outflows related to operations ...
Q: 18. OOO and UUU are partners who share profits and losses equally. The capital accounts of the partn...
A: Partnership refers to a formal mutual arrangement happened between two or more parties who have agre...
Q: On December 31, 2030, the Statement of Financial Position of ABC Partnership provided thefollowing d...
A: Capitalisation of new partnership=6,000,000 Capital interest = 10% of 6,000,000 ...
Q: On January 2, 2020 FFF Company sold equipment with a carrying amount of P6,500,000 in exchange for ...
A: The present value is the value of the sum received at time 0 or the current period. It is the value ...
Q: Instructions : Q. 1 Journalize the transactions shown above. Q. 2 Post to the ledger and display the...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: On December 31, 2030, the Statement of Financial Position of ABC Partnership provided thefollowing d...
A: The question is multiple choice question. Required Choose the Correct Option.
Q: The Fisher Company purchased a machine on September 1, 2011, for $80,000. At the time of acquisition...
A: The right answer is option a. $15,000
Q: Fill in the blanks: Assioente During 2020, Sorbetes Company bought shares of another entity to be he...
A: The Company bought shares of another entity tonbe held for trading. Required 1. Dividend Income for...
Q: Oreo Company factored P5,000,000 of accounts receivable to ABC Company on July 1, 2020. Control was ...
A: working notes: 1) fee =P5,000,000 *5%=P250000 hold back =P5,000,000 *20%=P1000000 Interest=P5,000,00...
Q: ABC Limited restores and sells top end classic and antique automobiles. Most of its customers are pr...
A: REA Diagram: REA diagram is a technique used to establish the relationship between resource, event...
Q: How to solve this?
A: Capital employed: It is the total amount of equity invested in the business. It is the difference be...
Q: 47. Vincenzo Cassano Company sells one product, which it purchases from various suppliers. The tria...
A: The cost of goods sold means the cost of producing the goods which are being sold by the organizatio...
Q: Cam Fitzer, a white-collar exempt employee, started working for Villan Company on Thursday of this w...
A: Gross pay means total earning of an employee during a period is known as gross pay ,or we can say to...
Q: ugay Industries, a defense contractor, is developing a cash budget for October, November,andDecember...
A: Cash budget is prepared with a view to ascertain the total expected cash collection and total expect...
Q: How to do this? 3
A: Reducing Balance Method: The reducing-balance methodology, also referred to as the declining-balance...
Q: Three different companies each purchased trucks on January 1, 2018, for $62,000. Each truck was expe...
A: CALCULATION OF BOOK VALUE ON DECEMBER 31 , 2020 : PARTICULARS COMPANY 1 COMPANY 2 COMPANY 3 ...
Q: Partners AAA, BBB and CCC decided to liquidate their partnership. The partnership’s statement of fin...
A: In case of partnership liquidation, all non cash assets are sold out, gains and losses on sale of as...
Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKLCompany at a cost of P1,632,00...
A: Given Information: Income of ABC Company = P571,200 Dividends = P306,000 Income of JKL Company = P13...
Q: Journalize this transaction: Paid Kraft Co.$4,000 on account.
A: Journal refers to the process of recording all the monetary transactions which shows all the credit ...
Q: Sonar Company nad the following :department data Physical Units Work in process, July 1 30,000 Compl...
A: Equivalent units:- These units calculated in order to allocate manufacturing costs to both the compl...
Q: On January 1, 2019, GUTZY Corporation purchased a tract of land (site number 101) with a dilapidated...
A: Fixed assets Fixed assets are also known as long-term assets and non-current assets. These are those...
Q: Bulldog Manufacturing Corp. consigned ten refrigerators to Poodles Sales Co. These refrigerators ha...
A: 1) The consignee sold the 6 refrigerators for a total of ____. Let the total amount of sale for 6 ...
Q: On November 1, 2020, Americo, Corporation sold wine on credit to Venezia Company for €800,000. Payme...
A: Wine sold to Venezia Company on Nov.1, 2020, for 800,000 Payment is not due for 120 days Transaction...
Q: Does the audit opinion extend to the "other information"? Explain. *
A: Auditing refers to the process of scrutinizing the financial statement of the business entity and ch...
Q: Western Wear Clothing issues 1,300 shares of its $0.01 par value common stock to provide funds for f...
A: When shares are issued at a premium The journal entry will include Debit to cash/Bank Credit to c...
Q: Subject: AFAR #43
A: Materials that were partially completed during the manufacturing process are classified as work-in-p...
Q: n the year ended 31/12/2018 total income of Palestine co,20,000 if A partner received 5,000 annual s...
A: When two or more people create an agreement for the purpose of earning a profit, in which all the ri...
Q: If Ricky Padilla uses the straight-line method to depreciate an asset, depreciation expense will be ...
A: First we will calculate the book value of machinery using straight line method - Let the book value ...
Q: ACCOUNTING question! how to prepare statement of cashflow?
A: Cash flow statements are the statements that determine the inflow and outflow of cash from three maj...
Q: An account had a balance of P7,000 and paid P3,500 on the November 7 due date. A purchase of P2,000 ...
A: Account balance P7,000 Paid an amount of P3,500 on the November 7 due date. A purchase of P2,000 wa...
Q: May I ask for help with this question? I got an answer of 100,000 (Rounded Up) Please check. W Co. ...
A: Step 1 Intangible assets are measured initially at cost and afterwards subsequently an entity usuall...
Q: Prepare cash budgets for August, September, and October, 201A, based on the above data and supported...
A:
Q: What is the answer to the question I uploaded
A: The Sales , Cost of goods sold and gross profit for year 2019 and 2020 are given. Required Analyze ...
Q: How to entre a credit cards
A: How to entre a credit cards
Q: B.)
A: Journal Entry is the method of recording all financial transactions of the business.
Q: Discuss the role of management accountant in the current business environment. Your answer should in...
A:
Q: CAN SOMEONE HELP ME PREPARE AN OWNERS EQUITY STATEMENT FOR THE 2 MONTHS ENDED DEC.31,2019? Natalie h...
A: COOKIE CREATIONS Income Statement Particular Amount ($) Amount ($) Revenues Service rev...
Q: 17. The following information relates to XXX and YYY’s partners capital accounts for fiscalyear endi...
A: Following is the answer to the given question
Q: How to complete a balance sheet note
A: Current assets are items of value owned by your business that will be converted into cash within one...
Pizza Place, a national pizza chain is considering purchasing a smaller chain, Western Mountain Pizza. Projected
Question: How much is the projected terminal cashflow (cashflow after year 4 to infinity) from Western Mountain Pizza?
Step by step
Solved in 2 steps
- Pizza Place, a national pizza chain is considering purchasing a smaller chain, Western Mountain Pizza. Projected cash flows as a result of the merger are: Year1, $1,500,000; Year2, $2,000,000; Year3, $3,000,000; Year4, $5,000,000. In addition, Western's year4 cashflows are expected to grow at a constant rate of 5% after year 4. Western's post-merger beta is estimated to be 1.5 and its post-merger tax rate is 40%. The risk-free rate is 6% and the market risk premium is 4%. REQUIRED: 1. What is the maximum bid price per share of Pizza Place for Western Mountain Pizza? 2. If Western Mountain Pizza has 5,000,000 outstanding shares and are currently selling at $13. How much is the minimum acceptable price (in total) for Western Mountain Pizza?Pizza Place, a national pizza chain is considering purchasing a smaller chain, Western Mountain Pizza. Projected cash flows as a result of the merger are: Year1, P1,500,000; Year2, P2,000,000; Year3, P3,000,000; Year4, P5,000,000. In addition, Western's year4 cashflows are expected to grow at a constant rate of 5% after year 4. Western's post merger beta is estimated to be 1.5 and its post-merger tax rate is 40%. The risk-free rate is 6% and the market risk premium is 4%. What is the total value of Western Mountain Pizza to Pizza Place? Show your solution.Pizza Place, a national pizza chain is considering purchasing a smaller chain, Western Mountain Pizza. Projected cash flows as a result of the merger are: Year1, P1,500,000; Year2, P2,000,000; Year3, P3,000,000; Year4, P5,000,000. In addition, Western's year4 cashflows are expected to grow at a constant rate of 5% after year 4. Western's post merger beta is estimated to be 1.5 and its post-merger tax rate is 40%. The risk-free rate is 6% and the market risk premium is 4%. How much is the projected terminal cashflow (cashflow after year 4 to infinity) from Western Mountain Pizza. Show your solution.
- Pizza Place, a national pizza chain is considering purchasing a smaller chain, Western Mountain Pizza. Projected cash flows as a result of the merger are: Year1, P1,500,000; Year2, P2,000,000; Year3, P3,000,000; Year4, P5,000,000. In addition, Western's year4 cashflows are expected to grow at a constant rate of 5% after year 4. Western's post merger beta is estimated to be 1.5 and its post-merger tax rate is 40%. The risk-free rate is 6% and the market risk premium is 4%. What is the maximum bid price per share of Pizza Place for Western Mountain Pizza? Show your solutionPizza Place, a national pizza chain is considering purchasing a smaller chain, Western Mountain Pizza. Projected cash flows as a result of the merger are: Year1, P1,500,000; Year2, P2,000,000; Year3, P3,000,000; Year4, P5,000,000. In addition, Western's year4 cashflows are expected to grow at a constant rate of 5% after year 4. Western's post merger beta is estimated to be 1.5 and its post-merger tax rate is 40%. The risk-free rate is 6% and the market risk premium is 4%. If Western Mountain Pizza has 5,000,000 outstanding shares and are currently selling at P13. How much is the minimum acceptable price (in total) for Western Mountain Pizza? Show your solution.Pizza Place, a national pizza chain, is considering purchasing a smallerchain, Western Mountain Pizza. Pizza Place’s analysts project that the merger will resultin incremental cash flows of $1.5 million in Year 1, $2 million in Year 2, $3 million inYear 3, and $5 million in Year 4. In addition, Western’s Year 4 cash flows are expectedto grow at a constant rate of 5% after Year 4. Assume that all cash flows occur at theend of the year. The acquisition will be made immediately if it is undertaken. Western’spost-merger beta is estimated to be 1.5, and its post-merger tax rate would be 40%. Therisk-free rate is 6%, and the market risk premium is 4%. What is the value of WesternMountain Pizza to Pizza Place?
- Cupp Cake is considering purchasing a competitor, ChocoMallow. Projected cash flows as a result of the merger are: Year1, P1,450,000; Year2, P1,750,000; Year3, P2,000,000; Year4, P2,500,000. In addition, Cupcake2's year4 cashflows are expected to grow at a constant rate of 6% after year 4. Cupcake's post merger beta is estimated to be 1.2 and its post-merger tax rate is 40%. The risk-free rate is 8% and the market risk premium is 4%. 1. What is the maximum bid price that Cup Cake can offer in the acquisition 2. How much is the net advantage/disadvantage to Cup Cake if it acquires ChocoMallow's 10,000,000 shares at the current market price of P9Melissa’s Kitchen is considering acquiring Takeshi’s Takeout Corp., a small local restaurant chain. Expected net cash flows from the acquisition for the first four years of the post-merger period are: Year 1 $350,000 Year 2 $400,000 Year 3 $475,000 Year 4 $550,000 After four years, the net cash flows are expected to grow at a constant rate of 3 percent per year. If we know the following information, what is the most Melissa’s Kitchen Should pay for Takeshi’s Takeout? Melissa’s Kitchen Borrowing costs 5% above the current long-term Treasury Bond rate 10-year T-Bond Rate 2/8/23 = 3.64% Beta 2.4 Debt $4 million Stock 500,000 shares outstanding - $20 per share on 2/8/23 Tax Rate 21 percentCake World2 is considering purchasing a competitor, Cupcake2. Projected cash flows as a result of the merger are: Year1, P1,450,000; Year2, P1,750,000; Year3, P2,000,000; Year4, P2,500,000. In addition, Cupcake2's year4 cashflows are expected to grow at a constant rate of 6% after year 4. Cupcake's post merger beta is estimated to be 1.2 and its post-merger tax rate is 40%. The risk-free rate is 8% and the market risk premium is 4%. How much is the net advantage/disadvantage to Cake World2 if it acquires Cupcake2's 10,000,000 shares at the current market price of P9.
- Cuppy World is considering purchasing a competitor, Cupcake. Projected cash flows as a result of the merger are: Year 1, P1,450,000; Year 2, P1,750,000; Year 3, P2,000,000; Year 4, P2,500,000. In addition, Cupcake's year4 cash flows are expected to grow at a constant rate of 6% after year 4. Cupcake's post-merger beta is estimated to be 1.2 and its post-merger tax rate is 40%. The risk-free rate is 8% and the market risk premium is 4%. 1. Compute for the maximum bid price that Cuppy World can offer in the acquisition. 2. How much is the net advantage/disadvantage to Cuppy World if it acquires Cupcake's 10,000,000 shares at the current market price of P9?Cake World is considering purchasing a competitor, Cupcake. Projected cash flows as a result of the merger are: Year1, P1,450,000; Year2, P1,750,000; Year3, P2,000,000; Year4, P2,500,000. In addition, Cupcake's year4 cashflows are expected to grow at a constant rate of 6% after year 4. Cupcake's post-merger beta is estimated to be 1.2 and its post-merger tax rate is 40%. The risk-free rate is 8% and the market risk premium is 4%. Compute for the maximum bid price that Cake World can offer in the acquisitionJupiter Inc.’s directors are considering expanding their operations in foreign markets. They estimate that the cost of expansion is approximately $42 million. The company’s CFO has estimated that new foreign operations will generate the following cash flows: Year 1 = $2,120,000 Year 2 = $2,838,000 Year 3 = $3,480,000 Year 4 = $4,570,000 Year 5 onward, the cash flow stream is going to stabilize at $5,500,000 which is going to continue forever. Given that the company’s required rate of return is 11%, what is the NPV of the project?
