Answer:
$6.3 per share
Explanation:
There are two method of Valuation of the firm
- Weighted average cost of the capital (WACC)
- Free cash flow to equity (FCFE)
We have to calculate the value of the firm using FCFE. Free cash flow to equity (FCFE) is the amount of cash flow generated by the business and potentially available for distribution among the stockholders.
Value of firm = Free cash flow / required rate of return = $120,000 / 12% = $1,000,000
Market value of Equity = Total value of firm - Market value of Debt - Market value of Preferred share
Market value of Equity = $1,000,000 - $300,000 - $70,000 = $630,000
Value of Patrick's stock = Market Value of equity / shares of stock outstanding = $630,000 / 100,000 = $6.3 per share
Answer:
Jacob made a mistake at the Initiation stage of the project management process
Explanation:
The initiation stage is the first stage in every project cycle. It is the stage of defining the objectives, scope, purpose and deliverable to be produced.
If this stage of project management had been well managed the project might not have failed because the employees would have been guided on the trends to follow to achieve the various goal and objectives set for each projects.
<span>Potential sources of error for bmi come from measurement errors. BMI is calculated by your height and weight. If the height is calculated by seeing how tall you are and measured by inches. If you are not standing straight and slouch you height measurement is not accurate. Weight is measured on a scale in pounds. One must remove clothes to get an accurate weight. If any of these measurements are off, the bmi will not correct.</span>
a. The population of this study consists of all subscribers to Bloomberg Newsweek in North America.
b. Quantitative variables are those that can be measured numerically. Annual income is a quantitative variable since it can be expressed in numbers.
c. Categorical variables are those that can’t be quantified. They can only take on a fixed number of values. In this case, the question ‘do you own an American express credit card’ can take on only two values – Yes or No. So, the ownership of an American Express credit card is a categorical variable.
d. The data above gives two different values that describe the same population at the same time, it involves cross-sectional data.
Time-series data refers to data that is collected at equally spaced time intervals. For e.g. production of wheat in each year for the last 10 years, the amount of rainfall received over each of the last five years etc.
Cross-sectional data refers to data from many (similar)individual groups at one given point in time. For e.g. Prices of different varieties of corn on a particular day.
e. On the basis of the survey, Bloomberg Newsweek might infer that at least some of its subscribers with an income of $75,000 or more have an American Express credit card.
Answer:
1. Is this a 17 percent loan?
- No, the loan charges a much higher interest rate
2. What rate would legally have to be quoted?
3. What is the effective annual rate?
Explanation:
effective annual rate = (1 + i/n)ⁿ - 1
using a financial calculator, i = 30% (PV = 20,000, PMT = -1,950, Nper = 12, FV = 0)
monthly interest rate = 2.5%
effective annual rate = (1 + 0.30/12)¹² - 1 = (1 + 0.025)¹² - 1 = 1.3449 - 1 = 0.3449 = 34.49%
APR (legal rate) = 2.5% x 12 = 30%
