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
Explanation:
The company either provides a service to its clients and sell its goods to the customers so that it can accomplish their targets and can achieve a maximum share in the market
In the given situation, it is mentioned that the company either performed a service, sells inventory i.e purchase from others but this is a wrong statement as it provides a service and sells its goods but not perform a service
Hence, the given statement is false
Answer: Planning, Programming, Budgeting and Execution system (PPBE).
Explanation:
The decision support system that is a "calendar-driven process and offers the basis for informed affordability assessment is the Planning, Programming, Budgeting and Execution system (PPBE).
The Planning, Programming, Budgeting, and Execution (PPBE) is simply used in the allocation of resources.
Answer:
a. the advertisements wasted money and time because they were not targeted properly
Explanation:
The advertisement is not well targeted, with the increased unemployment in this region and the fact that the major source of economic wealth ( the beer manufacturer) has been bought and relocated, means the economy is not well profiled for the luxury cars that are advertised.
The company should first of all do it's research to gauge how well profiled the residents of the economy is to their products.
Ideally the target if the advertisement should be a thriving economy where there is excess cash to purchase luxury goods.
Explanation:
Clean Air Act which arouse in 1963 to protect environment as well as human health in the United States.
Advantages to the environment:
- Reduces air pollution by setting standard for industry to control emission of dangerous wastes
- People becomes active because of the in-take of fresh air
- Protects ozone layer
Disadvantages to the Industry:
- A big challenge to the industry
- Certain goods cannot be produced since the emission of chemicals into the air is more than the stipulated ratio specified by the Clean air act
Clean air act is essential to protect the environment, at the same time, the industry has many intelligent people to wisely control pollution and reach success in-spite of challenges.
