Reynolds Construction's value of operations is $750 million based on the free cash flow valuation model. Its balance sheet shows $50 million of short-term investments that are unrelated to operations, $100 million of accounts payable, $100 million of notes payable, $200 million of long-term debt, $40 million of common stock (par plus paid-in-capital), and $160 million of retained earnings. What is the best estimate for the firm's value of equity, in millions?
A. $429
B. $451
C. $475
D. $500
E. $525
Answer: D
You might also like to view...
Ultimately, the amount of steel sold to General Motors depends on the consumers' demand for GM cars and trucks. From the standpoint of the steel manufacturer, which of the following demand forms is most pertinent?
A) derived demand B) inelastic demand C) geographic demand D) relational demand E) static demand
The Retained earnings account has a credit balance of $47,000 before closing entries are made. Total revenues for the period are $65,200, total expenses are $44,800, and dividends are $13,000. What is the correct closing entry for the revenue accounts?
A. Debit Revenue accounts $47,000; credit Retained earnings $47,000. B. Debit Income Summary $65,200; credit Revenue accounts $65,200. C. Debit Income Summary $47,000; credit Retained earnings $47,000. D. Debit Revenue accounts $65,200; credit Income Summary $65,200. E. Debit Revenue accounts $65,200; credit Retained earnings $47,000.
Define planning. List and briefly discuss the two types of planning managers perform.
What will be an ideal response?
In advanced economies, marketing costs only about 10 percent of each consumer's dollar.
Answer the following statement true (T) or false (F)