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: d. Uncle John's
Absolute Advantage refers to the ability of an individual, company, region or country to produce a particular product or service at a price lower than that of his or her or its competitors.
When the price for the company's products are lower in comparison to other similar products, the demand for its products are more and it's able to sell more number of units than its competitors.
In this case, Uncle John's has the absolute advantage since it sold the most number of cookies (125)
Answer:
it is not easy to carry out the functions of marketing intermediaries, and that probably they will not perform them very efficiently.
Explanation:
Marketing intermediaries play a huge role in the market channel distribution of all goods. They help reduce or rather bridge that gap that exist between the producers and the final consumers. Marketing intermediaries play a vital role in which they are specialized in. The role they are specialized in cannot just be picked and played easily by any other agent like the producer. As marketing intermediaries, they are specialized in their job duties and because of that are the most effective and efficient in playing that role. It thus, becomes very difficult to carry out functions of what you aren't specialized in.
Answer and Explanation:
The computations are shown below:
1. For annual implicit cost
= Earning annual salary + earned annual interest
= $80,000 + $500
= $80,500
2. For Annual accounting cost
= Explicit cost
= Direct expenses
= Office rent + rent of equipment + supplies + utilities + salary of a book keeper
= $15,000 + $3,000 + $1,000 + $1,200 + $35,000
= $55,200
3. For economic cost
= Accounting cost + implicit cost
= $55,200 + $80,500
= $135,700
4. For revenue
= Accounting profit + profit
= $55,200 + $50,000
= $105,200
5. For revenue
= Economic cost + profit
= $135,700 + $50,000
= $185,700
Answer: Chad took an illegal listing
Explanation:
From the question, we are informed that Seller Wanda told her broker Chad that she wants to clear $75,000.00 when she sells her home and that Chad took the listing and sold the home for $150,000 and gave Wanda her $75,000.00 and he kept the other $75,000.00.
In this scenario, Chad took an illegal listing. Wanda has the right to know the amount that the home was sold. All written offers should have been sent to Wanda for her to review.
