ash flow model. Scenario... Subscribe to view answer Related Answered QuestionsQq2c. due by 1145pm est usa.

ash flow model.   Scenario...

Related Answered QuestionsQq2c. due by 1145pm est usa. Exercise 5-9A Allocating costs with different cost drivers LO 5-2, 5-3 Wallace Publishing idAnswered over 90d ago100%QExercise 5-9A Allocating costs with different cost drivers LO 5-2, 5-3 Wallace Publishing identified the following overhAnswered over 90d agoQ9. Planning Investments. Your uncle has $90,000 that he wishes to invest now in order to use the accumulation for purchaAnswered over 90d agoQRomans Food Market, located in Saratoga, New York, carries a variety of specialty foods from around the world. Two of thAnswered over 90d agoQProblem 8-11 The employee credit union at State University is planning the allocation of funds for the coming year. TheAnswered over 90d agoQJournalize the following transactions of Shore Company, a VAT registered company. July 2  Sold and shipped merchandise wAnswered over 90d ago100%

1 of 3

QuestionAnswered step-by-stepAsked by GrandUniverseIbis16

Sage Hill Inc. is using a discounted cash flow model.

 

Scenario 1: Cash flows are fairly certain		Scenario 2: Cash flows are uncertain
$ 240/year for 5 years		75% probability that cash flows will be $ 240 in 5 years
Risk-adjusted discount rate is 6%		25% probability that cash flows will be $ 75 in 5 years
Risk-free discount rate is 4%		Risk-adjusted discount rate is 6%
		Risk-free discount rate is 4%

required

Identify which model Sage Hill might use to estimate the discounted fair value under each scenario, and calculate the fair value

 

Transcribed Image Text:

Messy is a supplier of tablets for kids in Klang Valley. The balance of assets and liabilities as at 1 February 2019 were as follows: Assets: Cash at Bank RM450,000, Accounts Receivable - RANALDO RM60,000 and Building RM390,000 Liabilities: Accounts Payable - BAIL RM220,000, Loan RM300,000 and Capital RM380,000 The following transactions took place during the month of February 2019: Feb 2 Received cheque from RANALDO to settle the outstanding by cheque Dr cash at bank 60,000 r. Acc receivable RONALDO 60,000 5 Purchased tablets on credit from ARBELOA worth RM75,000 on terms 10/30, 60 Dr purchases 75,000 er ace payable- ARBELOA 75,000 9 Sold tablets worth RM54,000 on credit to ALANSA on terms 520, 30. Dr acc receivable-ALANSA 54,000 C Sales 54,000 10 Paid RM1.500 forinport daties Dr import duties 1500 or cash at bank 1500 11 Returned damaged tablets to ARBELOA worth RM2,000 Dr ac payable-ARBELOA 2,000 cr purchases retum 2,000 13 ALANSA returned tablets words RM900 due to wrong specification Dr sales reton 900 race receivable-ALANSA 900 14 ALANSA paid in full the amount outstanding by chaque (after taking into consideration of all the discounts avatiable) 53.100 5%-2655 OR DISCOUNT ALLOWED 2655 CR ACC RECEIVABLE-ALANSA 2655 DR CASH AT BANK 50445 CRACC RECEIVABLE-ALANSA 50445 15 Messy, the owner withdrew tablets worth RM1,000 for personal reference DR drawings 1,000 or purchases 1,000 18 Paid ARBELOA by choque in full settlement (after taking into consideration of all e discuss an 73.000 10%-7300 Or are payable ARRELOA 7300 CR 7300 Or ace payable ARBELOA 65700 Cr cash at bank 65700 21 Purchased more tablets worth RM9,000 from Niko on credit on terms 2/7, n/30 Dr purchases 9,000 cr ace payable-Nike 9,000 25 Parchased two cabinets on cradit from GLASS worth RM12,000 Dr furniture 12,000 er ace payable-GLASS 12.000 29 Paid salaries by cheque to 5 sales staff RM3,000 cach Dr salaries exp 15,000 cr cash at bank 15,000 You are required to prepare: a. ledgers to record the above transactions. b. a trial balance as at 28 February 2019 Messy is a supplier of tablets for kids in Klang Valley. The balance of assets and liabilities as at 1 February 2019 were as follows: Assets: Cash at Bank RM450,000, Accounts Receivable - RANALDO RM60,000 and Building RM390,000 Liabilities: Accounts Payable - BAIL RM220,000, Loan RM300,000 and Capital RM380,000 The following transactions took place during the month of February 2019: Feb 2 Received cheque from RANALDO to settle the outstanding by cheque Dr cash at bank 60,000 r. Acc receivable RONALDO 60,000 5 Purchased tablets on credit from ARBELOA worth RM75,000 on terms 10/30, 60 Dr purchases 75,000 er ace payable- ARBELOA 75,000 9 Sold tablets worth RM54,000 on credit to ALANSA on terms 520, 30. Dr acc receivable-ALANSA 54,000 C Sales 54,000 10 Paid RM1.500 forinport daties Dr import duties 1500 or cash at bank 1500 11 Returned damaged tablets to ARBELOA worth RM2,000 Dr ac payable-ARBELOA 2,000 cr purchases retum 2,000 13 ALANSA returned tablets words RM900 due to wrong specification Dr sales reton 900 race receivable-ALANSA 900 14 ALANSA paid in full the amount outstanding by chaque (after taking into consideration of all the discounts avatiable) 53.100 5%-2655 OR DISCOUNT ALLOWED 2655 CR ACC RECEIVABLE-ALANSA 2655 DR CASH AT BANK 50445 CRACC RECEIVABLE-ALANSA 50445 15 Messy, the owner withdrew tablets worth RM1,000 for personal reference DR drawings 1,000 or purchases 1,000 18 Paid ARBELOA by choque in full settlement (after taking into consideration of all e discuss an 73.000 10%-7300 Or are payable ARRELOA 7300 CR 7300 Or ace payable ARBELOA 65700 Cr cash at bank 65700 21 Purchased more tablets worth RM9,000 from Niko on credit on terms 2/7, n/30 Dr purchases 9,000 cr ace payable-Nike 9,000 25 Parchased two cabinets on cradit from GLASS worth RM12,000 Dr furniture 12,000 er ace payable-GLASS 12.000 29 Paid salaries by cheque to 5 sales staff RM3,000 cach Dr salaries exp 15,000 cr cash at bank 15,000 You are required to prepare: a. ledgers to record the above transactions. b. a trial balance as at 28 February 2019

Answer rating: 100% (QA)

In the given scenario Sage Hill Inc is using a discounted cash flow model to estimate the fair value ... View the full answer