Business, 03.02.2021 21:30, lahebra

Teal Mountain Inc. owns 25% of the common shares of Monty Corp. The other 75% of the shares are owned by the Monty family. Teal Mountain acquired the shares eight years ago through a financing transaction. Each year, Teal Mountain has received a dividend from Monty. Monty has been in business for 60 years and continues to have strong operations and cash flows. Teal Mountain must determine the fair value of this investment at its year end. Since there is no market on which the shares are traded, Teal Mountain must use a discounted cash flow model to determine fair value. Teal Mountain management intends to hold the shares for 5 more years, at which time they will sell the shares to the Monty family under an existing agreement for $1 million. There is no uncertainty in this amount. Management expects to receive dividends of $88,000 for each of the five years, although there is a 20% chance that dividends could be $44,000 each year. The risk-free rate is 6% and the risk-adjusted rate is 8%.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 04:00, 702580

Medtronic, inc., is a medical technology company that competes for customers with st. jude medical s. c., inc. james hughes worked for medtronic as a sales manager. his contract prohibited him from working for a competitor for one year after leaving medtronic. hughes sought a position as a sales director for st. jude. st. jude told hughes that his contract with medtronic was unenforceable and offered him a job. hughes accepted. medtronic filed a suit, alleging wrongful interference. which type of interference was most likely the basis for this suit? did it occur here? medtronic, inc., is a medical technology company that competes for customers with st. jude medical s. c., inc. james hughes worked for medtronic as a sales manager. his contract prohibited him from working for a competitor for one year after leaving medtronic

Answers: 2

continue

Business, 22.06.2019 13:40, ilovecatsomuchlolol

A. j. was a newly hired attorney for idle time gaming, inc. even though he reported directly to the president of the company, a. j. noticed that the president always had time to converse with the director of sales, calling on him to get a pulse on legal/regulatory issues that, as the company attorney, a. j. could have probably handled. a. j. also noted that the hr manager’s administrative assistant was the go-to person for a number of things that would make life easier at work. a. j. was recognizing the culture at idle time gaming.

Answers: 3

continue

Business, 22.06.2019 14:50, keishadawson

The following information is needed to reconcile the cash balance for gourmet catering services. * a deposit of $5,600 is in transit. * outstanding checks total $1,000. * the book balance is $6,400 at february 28, 2019. * the bookkeeper recorded a $1,800 check as $17,200 in payment of the current month's rent. * the bank balance at february 28, 2019 was $17,410. * a deposit of $400 was credited by the bank for $4,000. * a customer's check for $3,300 was returned for nonsufficient funds. * the bank service charge is $90. what was the adjusted book balance?

Answers: 1

continue

Business, 23.06.2019 01:00, F00Dislife

What are the benefits of different types of career education, like community colleges, vocational training programs, and four-year colleges?

Answers: 3

continue

Do you know the correct answer?

Teal Mountain Inc. owns 25% of the common shares of Monty Corp. The other 75% of the shares are owne...