Answer:
= $52.78 per share
Explanation:
<em>The value of a business can be determined using the free cash flow model. According to this model, the value of a firm is is the present value of its free cash flow discounted at the weigthed average cost of capital (WACC.)</em>
<em>The value of equity is the value of firm less value of other instruments (e.g debt and preferred stocks)</em>
<em>Value of equity = Value of the entire firm - Value of debt </em>
We can work out the the value per share using the steps below:
<em>Step 1</em>
<em>Calculate the total value of the firm</em>
Value of firm = 27.50/(0.1-0.07)
= $916.66 million
<em>Step 2</em>
<em>Calculate the value of equity</em>
<em>Value of equity = Value of the entire firm - Value of debt</em>
= $916.66 million - $125.0 million
=791.666 million
<em>Step 3</em>
<em>Calculate the value per share</em>
Value per share = Value of equity/ units of common stock
=$791.666 million/15 million units
= $52.78 per share
Prior to the studies of Hawthorne, it has been studied that
the managers had pay little attention of the role in human behavior when it
comes to making decisions because they are likely focus more about their line
of work and the progress rather than having to use their own behavior as a
human and whether which are acceptable and not.
Answer:
Alex is not at his seat and Danny urgently requires some documents, so he logs in to Alex's computer and mails the file to himself.
Explanation:
Logging in to another employee's system without his/her consent nor informing the boss of the firm is an unethical business practice.
Alex might have some vital and private information or data on his system in which he alone must access it.
Answer:
The standard deviation of the portfolio is 26.15%
Explanation:
First the formula of variance of a portfolio is used.
Take the square root of variance to get standard deviation.
(0.3)^2 × (0.35)^2 + (0.7)^2 × (0.3)^2 + 2 × 0.3 × 0.7 × 0.35 × 0.3 × 0.3 = 0.068355
Taking square root of 0.068355 to get standard deviation that is 26.15%
Answer:
b. have reason to know of the cause of the failure.
