century, your text author cites the work of Dr. Edward Jenner. Sometimes called the father of immunology; Jenner's
work directly led to the development of a vaccine that led to the eradication of...
Samsung Electronics reports the following regarding its accounting for inventories. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the average cost method, except for materials-in-transit. Inventories are reduced for the estimated losses arising from excess, obsolescence, and the decline in value. This reduction is determined by estimating market value based on future customer demand. The losses on inventory obsolescence are recorded as a part of cost of sales. 1. What cost flow assumption(s) does Samsung apply in assigning costs to its inventories? 2. If at year-end 2016 there was an increase in the value of its inventories such that there was a reversal of W 550 (W is Korean won) million for the 2015 write-down, how would Samsung account for this under IFRS? Would Samsung’s accounting be different for this reversal if it reported under U.S. GAAP? Explain.
Parnassus Corporation plans to invest $150 million in a new generator that will produce free cash flows of $20 million per year in perpetuity. The firm is all equity financed, with an equity cost of capital of 10%.
a. What is the NPV of the project ignoring any costs of raising funds?
b. Suppose the firm will issue new equity to raise the $150 million, and has after-tax issuance costs equal to 8% of the proceeds. What is the NPV of the project including these issuance costs, assuming all future free cash flows generated by it will be paid out?
c. Suppose that instead of paying out the project's future free cash flows, a substantial portion of these free cash flows will be retained and invested in other projects, reducing Parnassus' required fundraising in the future. Specifically, suppose the firm will reinvest all free cash flows for the next 10 years, and then pay out the cash flows after that. If its issuance costs remain constant at 8%, what is the NPV of the project including issuance costs in this case?
Solve for part in each of the following application problems. Round to the nearest cent unless otherwise indicated.
In a poll of 1582 people , 4.5% said that they prefer to purchase Ben and Jerry' s brand ice cream. Find the number of people who said they prefer Ben and Jerry's ice cream . Round to the nearest whole number.