The present value of expected future earnings of a business in excess of the earnings normally...

The present value of expected future earnings of a business in excess of the earnings normally realized in the industry. Recorded when a business entity is purchased at a price in excess of the fair value of its net identifiable assets (excluding goodwill) less liabilities___

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ekkarill92 answered 2 years ago

Future value and present value concepts are applied in various ways, such as calculating growth rates, earnings per share, expected sales and revenues in the future, and so forth.

Please show excel calculationsFuture value and present value concepts are applied in various ways, such as calculating growth rates, earnings per share, expected sales and revenues in the future, and so forth.Consider the following case:Pharmacist John S. Pemberton invented a soft drink in 1886 that eventually became not only an integral part of everyday life in the United States but also a symbol of consumerism worldwide. In 1929 the first Coca-Cola vending machines were installed in Germany, and in 1930,...

The present value of the future benefits to be paid, taking into consideration expected future increases...

The present value of the future benefits to be paid, taking into consideration expected future increases in salaries, is the -------------------------------------------------------------------- Interest cost is based upon the beginning balance of the ------------------------------ and uses a rate called the --------------------------------------------------------------------------------------------. Retroactive benefits granted to employees for services performed before the initiation of the pension plan are called --------------------------------------------------------------------------- Ten percent of the larger of the PBO at beginning of the year and pension fund at the same time is called the...

4. One way to value a company is to sum the discounted expected future earnings of...

4. One way to value a company is to sum the discounted expected future earnings of the firm. a. Does this make sense? Show and explain. b. Why then might somebody sell their shares and somebody else buy them? (The answer is drawn from the NPV formula)

Determine the future value and the present value of the following single amounts: Future and Present...

Determine the future value and the present value of the following single amounts: Future and Present Values item Invested Amount Interest Rate Percentage No. of Periods 1 15,000.00 6 12 2 20,000.00 8 10 3 30,000.00 12 20 4 50,000.00 4 12

(a)Determine the present value of the expected future cash flowassuming: (1) There is no hedge. 1815...

(a)Determine the present value of the expected future cash flowassuming: (1) There is no hedge. 1815 Gallons * BRL 90.15 = 163,622 Exchange Rate = 0.4234 Covert to USD = $69,277.55 Interest Rate of USD = 0.0215 Present Value In USD =. $67,819.44 (2) The company hedges using a forward contract 1815 Gallons * BRL 90.15 = 163,622 Exchange Rate = 0.4227 Convert to USD = $69,163.02 Interest Rate of USD = 0.0215 Present Value in USD = $67,707.31...

Present Value & Future Value calculation

Calculate the required values and select the correct option.

Using your Present Value for a Lump Sum, Present Value for an Annuity, Future Value of...

Using your Present Value for a Lump Sum, Present Value for an Annuity, Future Value of a Lump Sum and Future Value of an Annuity, create four separate problems (with solutions) that use each table. Therefore, you need one problem for each table but four problems in total. Please include formulas and explanations where needed. The tables aren't provided because it is however you want to do it (however, it does include the period and interest rate). (i.e) Can be...

Explain how the practice of calculating the present value of expected future cash flows can assist...

Explain how the practice of calculating the present value of expected future cash flows can assist you in your next salary negotiation; or perhaps discuss how you would use (in the future or have used in the past) NPV calculations of future personal income earning potential when evaluating the decision to pursue an advanced academic degree.

Finding a present value is the reverse of finding a future value.

3. Present value Finding a present value is the reverse of finding a future value. _______ is the process of calculating the present value of a cash flow or a series of cash flows to be received in the future. Which of the following investments that pay will $15,000 in three years will have a lower price today? The security that earns an interest rate of 21.75% The security that carns an interest rate of 14.50% Eric wants to invest in government securities that promise to...

The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations.

Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $12,800 will be worth $18,807.40 five years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? О 8.00% О 6.40% О 1.47% О 0.29% If an investment of $45,000...

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