FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that DroneTech's 3 year pro-forma is below. Assume that the appropriate discount rate is 20%. What is the fair market equity value (present value

image text in transcribed
Assume that DroneTech's 3 year pro-forma is below. Assume that the appropriate discount rate is 20%. What is the fair market equity value (present value of earnings) of this company. Choose from the following "rounded" answers the one that is closest to the equity value that you calculate $537,800 $492,800 $479,166 $441,600

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Executives Managing For Value Creation

Finance For Executives Managing For Value Creation

Authors: Gabriel Hawawini, Claude Viallet

2nd Edition

0324117752, 9780324117752

More Books

Students also viewed these Finance questions

Question

★★★★★
To spark interest in choosing accounting as a major, the Accounting Students Association at South Willow University is sponsoring an accounting contest. Students across campus are invited to create...

Answered: 1 week ago

Question

★★★★★
For the regression equation obtained in Exercise 15.91, analyze the residuals by (a) Constructing a histogram, (b) Using a normal probability plot, (c) Plotting the residuals versus the x values, and...

Answered: 1 week ago

Question

★★★★★
In a two-class priority queueing model suppose that a cost of Ci per unit time is incurred for each type i customer that waits in queue, i = 1, 2. Show that type 1 customers should be given priority...

Answered: 1 week ago

Question

★★★★★
Rit Corporation paid $1,372,000 for a 30 percent interest in Tel Corporations outstanding voting stock on April 1, 2011. At December 31, 2010, Tel had net assets of $4,000,000 and only common stock...

Answered: 1 week ago

Question

★★★★★
Question 3 Not yet answered Marked out of 1.00 P Flag question Auditing of management accounting is compulsory Select one: O True O False

Answered: 1 week ago

Question

★★★★★
Help Save & Exit Submit A company had beginning inventory of 12 units at a cost of $18 each on March 1. On March 2. it purchased 12 units at $30 each. On March 6 lt purchased 7 units at $23 each. On...

Answered: 1 week ago

Question

★★★★★
1)Breakeven point: Algebraic and graphicalFine Leather Enterprises sells its single product for $129.00 per unit. The firm's fixed operating costs are $473,000 annually, and its variable operating...

Answered: 1 week ago

Question

★★★★★
13. Jose is 35 years old, and makes $40,000 per year. If he dies, how much would the beneficiaries of his life insurance policy receive if they can get by on 75% of his income?

Answered: 1 week ago

Question

★★★★★
Cookie Business In this project, you will be opening your own specialty cookie company to see how product costing methods and changes in production affect business decisions. You will be creating a...

Answered: 1 week ago

Question

★★★★★
The probability of event "A" is 50%. The probability of event "B" is 20%. "A" and "B" are two independent events. What is the probability of observing "A" and "B"?

Answered: 1 week ago

Question

★★★★★
Some statements are not considered hearsay because these statements are not being offered to prove the truth of the matter asserted in the statements. Thus, you must always ask yourself what is being...

Answered: 1 week ago

Question

★★★★★
What was the first HR error to be made?

Answered: 1 week ago

Question

★★★★★
Describe the Ethic of Justice. Why was it important in this situation?

Answered: 1 week ago

Question

★★★★★
Describe the Ethic of Critique. Why was it important in this situation?

Answered: 1 week ago

Previous Question Next Question