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kondor19780726 [428]
2 years ago
4

A stock analyst collected the following information about ABC Inc.: - The firm required rate of return on equity is 17% and its

WACC is estimated at 14%. - Based a thorough forecast, the analyst estimates for the free cash flows to the firm for the next two years are 820,000 and 970,000 respectively. His estimates for the free cash flows to equity are however: 550,000 and 660,000 for the next two years respectively. - Both FCFFs and FCFEs are expected to grow at a constant rate of 5% after the second year. The value of the firm is closest to: Question 13 options: 1) $8,245,228.47 2) $9,445,615.08 3) $10,173,489.28 4) $11,098,614.25
Business
1 answer:
REY [17]2 years ago
7 0

Answer:

$5,170,940.17

Explanation:

The computation of the value of the firm is shown below:

As we know that

Value\ of\ Equity = \frac{FCFE_1}{(1 + Ke)^1} + \frac{FCFE_2}{(1 + Ke)^2} + \frac{FCFE_2 (1 + g)}{ke - g} \times \frac{1}{(1 + ke)^2}

where,

FCFE = Free cash flow of equity

ke = cost of equity

g = growth rate

So,

Value\ of\ Equity = \frac{550,000}{(1 + 0.17)^1} + \frac{660,000}{(1 + 0.17)^2} + \frac{660,000_2 (1 + 0.05)}{0.17 - 0.05} \times \frac{1}{(1 + 0.17)^2}

= $470,085.47 + $482,138.94 + $4,218,715.76

= $5,170,940.17

This is the answer but the same is not provided in the given options

We simply applied the above formula so that the value of the firm could come

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High levels of brand​ ________, or the extent to which consumers feel they are​ "in sync" with the fox news​ brand, and engageme
lawyer [7]
I am definitely sure that correct statement should be completed like this: High levels of brand​ <span>resonance</span>, or the extent to which consumers feel they are​ "in sync" with the fox news​ brand, and engagement in fox news programs often leads to greater recall of the ads fox news runs. Brand resonances is the relationship between consumer and the product. It shows how the consumer can relate to it.
7 0
2 years ago
Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively. The va
klemol [59]

Answer:

Contribution = $35 X 2,00 = $7,000

But it has no warrant of demand therefore this additional contribution can only be realized on sale of 2,00 units.

Explanation:

Provided

Products                           Bales         Tales            Wales

Selling Price                      $55             $78               $32

Less: Variable Cost           $20             $50               $15

Contribution per unit =      $35             $28               $17

Hours per unit required       5                  7                   1

Contribution per hour        $35/5        $28/7             $17/1

                                              $7             $4                   $17

Second highest contribution margin per hour is of Bales, first is of Wales. We need to produce and sale the product with second highest margin per hour that is Bales, but since the first 1,000 units were used to produce goods with highest contribution margin per unit, and provided here is no warrant of its demand, it shall not be produced any further.

Now Wales shall be produced as it has highest contribution margin per hour.

Units produced within 1,000 hours of Wales = 1,000/1 hours = 1,000 units.

Contribution = 1,000 units of Wales X $17 = $17,000.

But it is asked - maximum additional contribution margin that can be realized by utilizing the remaining 1,000 hours on the product with the second highest contribution margin per hour is of Bales in that case

No of units = 1,000/5 = 2,00 units

Contribution = $35 X 2,00 = $7,000

But it has no warrant of demand therefore this additional contribution can only be realized on sale of 2,00 units.

3 0
2 years ago
Iris was at fault in a car crash in which Phil was injured. As they waited for the EMT's to arrive, a plane, which was part of a
kvv77 [185]

Answer:

superseding cause

Explanation:

According to my research on different liability law suits, I can say that based on the information provided within the question Iris will not be liable for this second set of injuries because the plane crash was a superseding cause. This refers to an accident that happens after another (initial accident) has already occurred in which an injury has happened. In this type of situation the person who caused the initial accident is not responsible for the second accident or injuries caused by it.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
2 years ago
Trell Corporation transferred $55,000 of accounts receivable to a local bank. The transfer was made without recourse. The local
e-lub [12.9K]
Answer:
Trell will show an amount receivable from factor equal to 20, 010 dollars.
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NON recourse factoring is when a company sells it's invoices to a factor, without the promise that the company will buy back any uncollected invoices. The factor does not take the risk of any uncollected invoices.
So in this factoring arrangement no allowance for bad debt exist
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2 years ago
Callista "cherry bomb" davidson is a world-famous stunt woman, and she is trying to achieve the long distance world record human
11Alexandr11 [23.1K]

Answer:

CODE

import time #importing time module

import math #importing math module

pi = math.pi #defining the value of pi

u = 70 #initial velocity

g = 9.8 #gravitational acceleration

time_step = 0.01 #time step of 0.01 secs

time_elapsed = 0.0

maxAngle = 0

angle = 1

h = 5.0 #setting the initial height to to 5m

x = 0.0

maxRange = 0.0

for angle in range(1,91): #loop which angle takes value from 1 to 90

ux = u * math.cos((pi / 180) * angle) #velocity in x axis

uy = u * math.sin((pi / 180) * angle) #velocity in y axis

for i in range(1000): #running for 1000 steps

dragx = 0.5 * 1.225 * 1.4 * 0.8 * ux * ux #calculating the drag in x direction

dragy = 0.5 * 1.225 * 1.4 * 0.8 * uy * uy #calculating the drag in y direction

drag_ax = dragx / 65.0 #calculating drag acceleration in x axis

drag_ay = dragy / 65.0 #calculating drag acceleration in y axis

accelx = drag_ax #resultant acceleration in x axis

accely = g + drag_ay #resultant acceleration in y axis

vx = ux - accelx * time_step #velocity in the x axis at any instant

vy = uy - accely * time_step #velocity in the y axis at any instant

h += uy * time_step - 0.5 * accely * time_step * time_step #height at any instant of the projectile

x += ux * time_step - 0.5 * accelx * time_step * time_step #range at any instant in the x axis of the projectile

print("Height " + str(h) + " Range " + str(x)) #printing the current position

time.sleep(time_step) #waiting for 0.01 secs

time_elapsed += time_step #calculating the time elapsed

ux = vx #setting the final velocitites to new initial velocities

uy = vy

if h <= 0.0: #if a height 0 is reached

if x > maxRange:

maxRange = x #max angles are noted

maxAngle = angle

h = 5.0 #variables are initialized

x = 0.0

u = 70.0

vx = 0.0

vy = 0.0

print("Wait till the next simulation starts.....")

time.sleep(10.0 - time_elapsed) #wait for 10 secs

time_elapsed = 0.0

break

print("The optimum angle for for Callista is {} degrees which will give her a range of {} metres".format(str(maxAngle),str(maxRange))) #the optimum angle is printed

Explanation:

3 0
2 years ago
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