Explain the difference between these two bases of valuation

Assignment Help Financial Accounting
Reference no: EM132420117

Problem: A business had a net book value of $96,000. A conservative, properly prepared present value of cash flow analysis indicated a true economic value of $123,000. What could explain the difference between these two bases of valuation for the business? Please describe your solutions.

Reference no: EM132420117

Questions Cloud

What is the value of celec stock : Celec common stock paid a dividend of $2.75 in the year just ended. If you estimate that Celec's dividend will grow at a rate of 15% in the coming year
Prepare sildes on preventing attacks on web applications : 12 slides not including title and references on a topic related to "Preventing attacks on web applications". It should be graduate level and in depth not.
What is the annual percentage rate : What is the annual percentage rate. Please explain how to calculate in steps.
What is the npv of the project : Labor and material costs total $750 per block, and fixed costs are $150,000 per year. Assume a 32% tax rate and a 12% discount rate.
Explain the difference between these two bases of valuation : What could explain the difference between these two bases of valuation for the business? Please describe your solutions.
Develop the integrated marketing communications plan : Develop your message strategy. Develop your media strategy. Develop your public relations, sales promotion, and personal selling plan relevant for your product
Article critique on software development model : Article Critique on Software development model - The research reports should be included in three paragraphs namely Introduction, body/ description, conclusion
Calculate the annual payment for option : Your firm is planning to purchase a building for $2,000,000 to use as its new corporate headquarters. The company is considering the two financing options
How technology supports learning for all students : In addition to the graphic organizer, in 250-500 words, summarize, reflect, and include a rationale for the inclusion of technology in classrooms.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd