Cool cargo corporation is considering going public. managers want to estimate common stock value. cool cargo’s cfo has collected data for valuation using the free cash flow method as follows… the firm’s weighted average cost of capital is 10%, and it has $100,000 of debt at market value, and $200,000 of preferred stock also at market value. the estimated free cash flows over the next 5 years, 2017-2021, are given as follows: year estimated free cash flow 2017 $200,000 2018 $250,000 2019 $310,000 from 2019 to infinity, the firm expects free cash flow to grow at a rate of 3% per year. (a) estimate the value of cool cargo’s entire company using the free cash flow valuation model. (b) use your finding in part (a), along with the data provided above, to find cool cargo’s common stock value. (c) if the firm has 200,000 shares of common stock outstanding, what is its estimated value per common share? (d) cool cargo corporation is too small to immediately become part of the djia. how are stocks weighted in the djia? which index, djia, s& p 500, or nasdaq 100, is most representative of the u. s. stock market? (e) the above free cash flow estimates were based on the 2017 tax code (i. e., before the recent income tax cuts were passed). describe how you think the new corporate and personal income tax cuts passed by the trump administration and congress effective 2018 will or hurt cool cargo corporation stock price.

For each separate case below, follow the 3-step process for adjusting the prepaid asset account at december 31. step 1: determine what the current account balance equals. step 2: determine what the current account balance should equal. step 3: record the december 31 adjusting entry to get from step 1 to step 2. assume no other adjusting entries are made during the year. a. prepaid insurance. the prepaid insurance account has a $4,700 debit balance to start the year. a re- view of insurance policies and payments shows that $900 of unexpired insurance remains at year-end. b. prepaid insurance. the prepaid insurance account has a $5,890 debit balance at the start of the year. a review of insurance policies and payments shows $1,040 of insurance has expired by year-end. c.prepaidrent.onseptember1ofthecurrentyear,thecompanyprepaid$24,000 for 2 years of rentfor facilities being occupied that day. the company debited prepaid rent and credited cash for $24,000.

Fred smithers, a recent college graduate decided to open his own portable juice bar, smithers smoothies, to wheel around newport beach. you, a trusted friend of fred, are a business major that has also recently graduated and agreed to handle the books for a while to get some practical experience and have a favor that you can ask of fred in the future. given the following five transactions concerning the new venture, prepare the necessary journal entries for the transactions, post the journal entries to appropriate t accounts and prepare a trial balance as of the end of the month in order to answer to the necessary may 2: fred invests $12,000 of his own money to start the new company. this money was obtained from a part-time job working at a legal firm while he was in school. may 3: fred spent $5,100 cash to purchase a refrigerated trailer that he can pull behind his car and set up at the beach. under your advice, fred agrees to place the new asset under an account called "equipment." may 6: fred bought $640 of supplies on account from the flav-o-rite confectioners company. because they will last longer than a single accounting period fred agrees to record them as, "supplies" as per your suggestion. may 13: fred sat on the beach for six hours without a single sale and was feeling very down. right before he left, however, a plumber escorting his family reunion along the beach stopped by his stand and bought $800 worth of smoothies for the entire family. under your advice, fred agrees to call this cash revenue, "sales." may 15: excited about his new venture, fred withdraws $350 from the company to take his girlfriend out to dinner. what would be the balance in the cash account at the end of the period following the posting of all the transactions?

All of the following led to the collapse of the soviet economy except a. a lack of worker incentives. c. inadequate supply of consumer goods. b. a reliance on production quotas. d. the introduction of a market economy.