Explain the two main components that determine a firm's franchise value. If a company has a base cost of equity of 13% and does not possess any franchise value, calculate its P/E ratio.
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![Explain the two main components that determine a firm's
franchise value. If a company has a base cost of equity of
13% and does not possess any franchise value, calculate
its P/E ratio.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e1ad2a4-bb80-4077-935b-e4df75319139%2F1cb2ae63-82ff-462e-bb4b-e23ac2dd2e5c%2Fwshnd5a_processed.jpeg&w=3840&q=75)
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- The activity ratios measure which of the following? Select one: O a the efficiency of the company's supply chain O b. the efficiency with which a company generates sales from its assets Oc the profitability of the company's activities Od the production efficiency of a company's fixed assets If the assumption of financial distress costs is added, then Modigliani and Miller (with taxes) predicts that the optimal capital structure is 100% debt Select one: O True O FalseAs the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity. You have been provided with the following data: D0 = $0.80; P0 = $22.50; and g = 8.00% (constant). Based on the DCF approach, what is the cost of common from retained earnings? Please show formula and answerDuPont system of analysis Use the following financial information for AT&T and Verizon to conduct a DuPont system of analysis for each company. Sales Earnings available for common stockholders Total assets Stockholders' equity a. Which company has the higher net profit margin? Higher asset turnover? b. Which company has the higher ROA? The higher ROE? c. Which company has the higher financial leverage multiplier? a. Net profit margin (Round to three decimal places.) AT&T Net profit margin AT&T $164,000 13,333 403,921 201,934 Verizon Verizon $126,280 13,608 244,280 24,232
- Discuss the two factors that determine the franchise value of a firm. Please solve these general accounting questionAssume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.80; P0 = $32.50; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?What is WACC (select all that are true)? Group of answer choices Rd (1-Tc) * D/V + Re * E/V Weighted Average Cost of Capital For a firm overall, it is based on the riskiness of the firm's assets While it is generally estimated by looking at the right-hand-side of the balance sheet, it is largely driven by the left-hand-side (i.e., assets) It is the amount that equity holders demand for an investment in a firm It is the amount that debt holders demand for a loan made to the firm
- Which one of the following will decrease the net working capital of a firm? Assume the current ratio is greater than 1.0. A. selling inventory at cost B. collecting payment from a customer C. paying a payment on a long-term debt D. selling a fixed asset for book value E. paying a supplier for the purchase of an inventory itemPlease provide correct answer with correct solutionGiven correct answer
- Please provide correct solution for problemUsing the information in the following chart, and PE Multiples, what is the per-share intrinsic value of Firm A's equity? That is, calculate the estimated per-share intrinsic value of Firm A's equity using the price-to-earnings (P/E) multiples below. Note: You should form (separate value estimates using the average price-to-book ratio and average price-to-earnings ratio for three comparables (Firms B, C and D) Book Value of Share Price (5) Shares Outstanding Common Equity (5) Earnings Per Share (EPS) (5) 2,000,000 20,000,000 8.00 Firm A 100.00 Firm B 200.00 3,000,000 50,000,000 14.00 Firm C 400.00 6,000,000 160,000,000 30.00 Firm D 800.00 12,000,000 880,000,000 60.00 A $100 B $126.36 C) $142.90 $109.21I don't need ai answer general accounting question
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