Answer:
Using the discount cash flow model to value the company, we can say that the company is worth $85 million / 12% = $708.33 million
Each stock should be worth approximately $708.33 million / 100 million = $7.0833 per stock
If the company uses the cash to finance new projects, then future cash flows should be approximately $97.75 million, and the company's value = $97.75 million / 12% = $814.583 million. This represents a 15% increase in value. The stock price should also increase by 15% to $8.1458 per stock.
If the company instead decides to repurchase stocks using all the cash, then it could repurchase 35.29 million stocks. Since we are assuming that the company's future cash flows wouldn't be affected by this decision, then the company's total value will still be $708.33 million, but each stock would be worth much more = $708.33 / 64.71 million stocks = $10.95. This represents a 34.36% increase with respect to the other alternative of investing the cash.
The issue here, is that this situation is not very realistic. It is not normal for a company to use all of its cash to repurchase stocks since it would result in a huge increase in stock prices (stock prices are set by supply and demand). Also, this would also result in a sharp increase in the cost of equity due to higher risks.
Answer:
False
Bill will have less than Beth
Explanation:
let us compare the amounts accumulated by the two individuals at age 65 to see which is more.
Money accumulated by Bill at age 65:
Since bill saves $2500 a year for 30 years, amount saved at the end of 30 years = 2500 X 30 = $75000.
Money accumulated by Beth at age 65:
Beth saves $2,500 a year from age 25 until age 34: Amount saved = 2500 X 9 = $22500
Invests the money in an account earning ten percent annually for 31 years.
Assuming it was at a simple interest rate,
The interest at the end of the 31st year will be:
Therefore total amount at age 65 = $22, 500 + 69750 = $92,250.
∴ This shows that Bill will have less money than Beth. Primarily due to the fact that he started investing at a lot later time than Beth.
Answer:
The correct answer is The global village.
Explanation:
The term "global village" is conceived as the impact that communications have within socio-cultural aspects. This phenomenon goes hand in hand with the spread of telecommunications and the internet, which allows access to information to be carried out at any place and time desired. In this way, ideas and events that occur within another geographical space can be conceived as their own, which directly influences the perception of people as if they lived in a remote place.
Answer: b. evidence-based
Explanation:
Evidence based management refers to the use of pragmatism in the making of decisions and basing those decisions on actual evidence.
The new Uber CEO Khosrowshahi, decided to hold meetings with the staff in other to get to find out what they thought was wrong with the company and then using this evidence he decided to preserve what worked and remove what doesn't. He therefore used evidence in his decision.
