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emmainna [20.7K]
1 year ago
11

SI International had a FCFE of $122.1M last year and has 12.43M shares outstanding. SI's required return on equity is 11.3%, and

WACC is 9.8%. If FCFE is expected to grow at 7.0% forever, the intrinsic value of SI's shares is Multiple Choice $14.76. $244.43. $108.00. $68.29.
Business
1 answer:
alexandr402 [8]1 year ago
7 0

Answer:

<em>The value per share = </em>$375.379

Explanation:

<em>The intrinsic value of shares is the present value of the Free cash flow to equity (FFCE) discounted at cost of equity. </em>

Total value of equity= FCFE× (1+g)/(r-g)

Total Value of equity= 122.1 × (1.07)/(0.113-0.07)= 3038.302326

The value per share = Total Value of company /Number of shares

                                 = $3038.302326 / 12.43  units

<em>                                    = </em>$244.43 per unit

<em />

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Complete Question:

Ben & Jerry’s Ice Cream buys keywords for a search marketing campaign such as “Ben & Jerry’s Chunky Monkey” and “Ben & Jerry’s Cherry Garcia.” What type of keywords is the firm buying?

Group of answer choices

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B. Organic keywords

C. Native keywords

D. Generic keywords

E. Branded keywords

Answer:

E. Branded keywords.

Explanation:

In this scenario, Ben & Jerry's Ice Cream buys keywords for a search marketing campaign such as "Ben & Jerry's Chunky Monkey" and "Ben & Jerry's Cherry Garcia." The type of keywords that the firm is buying is generally referred to as branded keywords.

A branded keyword can be defined as any query of a database through a search engine such as Google which includes the name of the business firm or company.

This ultimately implies that, a branded keyword is any query or search phrases that combines the name of a firm or brand and other branded terms associated with the firm such as product name, type, motto etc. Branded keywords is a strategic marketing process or approach which helps to make business firms or brands available to online customers and the target market or audience.

8 0
1 year ago
On January 1, 2019, Shay Company issues $400,000 of 10%, 12-year bonds. The bonds sell for $391,000. Six years later, on January
noname [10]

Answer:

$9,000

Explanation:

The computation of the  amount of the discount on the bonds at issuance is shown below:

= Par value of the bond - issued price of the bond

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By deducting the issued price of the bond from the par value of the bond we can get the discount amount on issuance of the bond and the same is applied above

4 0
2 years ago
A rug manufacturer has decided to use 7 compatible colors in her rugs. however, in weaving a rug, only 5 spindles can be used. i
zubka84 [21]
The number of available colors is n = 7.
The number of colors that can be selected at a time among the 7 colors is r = 5.

This means that the number of selections of 5 colors from 7 colors at a time is ₇C₅.
By definition,
_{7} C_{5} = \frac{7!}{2!5!} = \frac{7.6.5!}{2.1.5!} = \frac{7.6}{2}=21

Answer: The number of color groupings is 21.


3 0
2 years ago
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Assume that a company makes only three products: Product A, Product B, and Product C. Currently, the company uses a conventional
VikaD [51]

Answer:

Company A

Using the activity-based costing approach, the percent of the company’s total Material Handling activity cost that would be allocated to Product B is:

 

d. 33%

Explanation:

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Number of units produced   1,000 units  7,000 units 2,000 units   10,000

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Number of material moves  600 moves 400 moves  200 moves    1,200

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Therefore, the percentage of Product B usage of material handling activity is:

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