Answer:
The present value of terminal value is $ 863,689.48
Explanation:
Terminal value=Cash flows at third year*(1+g)/WACC-g
cash flows at the third year is $64,000
g is the growth rate of net cash flows which is 2% in perpetuity
WACC is 8%
Terminal value=$64,000*(1+2%)/(8%-2%)
=$64000*1.02/0.06
=$ 1,088,000.00
The present value of terminal=terminal value*discount factor in year 3
discount factor in year=1/(1+8%)^3=0.793832241
Present value of terminal cash flow=1,088,000.00 *0.79383224
=$ 863,689.48
The answer is: B. sacrifice profits for less risk.
Interest rates influence the amount of money that the borrower had to give back to the bank and Higher interest rate would give higher profit for the bank.
When bank people give low interest rates for people with good credit, the number of revenue that bank would make from giving the loan would decrease. But people with good credit has high likelihood of returning the money they borrow, which mean that there is less risk for the bank.
Answer:
horizontal; vertical
Explanation:
A merger is called horizontal if the company takes a competitor. This will result in the company taking the current market share of the competitor and widen its operational range, thus its called horizontal.
A merger will be called vertical if the company joins with the supplier or retailer. Its called vertical since the two businesses located at the different production stages (either on top or bottom). This will help them become more efficient in making or delivering their product, help them to decrease the cost of production.
<h3>Increased factory product indicates derived demand is True statement.
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Explanation:
The dealers kept waiting lists of people wanting Toyota Prius, so ordering more raw materials required to ramp up production is a clear example of derived demand.
Derived demand is an economic term that describes the demand for a certain good or service arising from a demand for similar, necessary goods or services.
Derived demand represents the association between the demand of customers for the output of a company and the purchase by the company of the required inputs for the production or assembly of that particular output.
Be honest and forthright is not exist as one among the key points of principled negotiation.
Explanation:
The activity of Be honest and forthright maybe act as a common methodology of human behaviour. Such human behavior cannot be related and linked with business terminology. As the motive of all traders is filled with a focus on profit, not on service point. It is purely based on values and ethical reactions. The corporate culture does not deal with emotions and feelings. It can deal only with the principles and well structured organizational behavior.
Human Resource management trains the executives to handle the critical situation in a diplomatic manner. It can help to take good and effective decisions amidst such controversial opinions of all employees. But they cannot seek help with the moral qualities of Honest and forthright to solve the problems. We can odd them out from the list of principled negotiations.
