Answer:
Explanation:
The computation is shown below:
The free cash flow is
= Expected net operating profit after taxes - net capital expenditure - net operating working capital
= $2,400 million - $360 million - $45 million
= $1,995 million
Now the total firm value is
= Free cash flow ÷ (cost of capital - growth rate)
= $1,995 million ÷ (11.70% - 3.90% )
= $1,995 million ÷ 7.8%
= $25,576.92 million
Now the intrinsic value of equity is
= Total firm value - outstanding debt - preferred stock
= $25,576.92 million - $11,510 million - $6,394 million
= $7,672.92 million
And, the intrinsic value per share
= $7,672.92 million ÷ 675 million shares
= $11.37 per share
Answer:
Explanation:
The expected cash flows from one of these bonds are:
- $60 in interest at the end of each year for 10 years, and
- $1,000 repayment of principal at the end of 10 years.
Answer:
The supply of Nigeria cocoa nibs will increase this year.
Explanation:
last year Nigeria supplied at $9 per 10 pounds but this year its supplying at $12 per pounds, this means that the Nigerian nibs quantity will have to increase to cover up for the demand of its goods.
False, even if an objective is impossible to attain , it still meets the criteria of good objective because it motivate workers.
Explanation:
Goal and objectives are required for running a company properly. If the workers are motivated they will be able to increase the production as well as work hard to improve their performance. It will increase the output
Proper motivation increases the efficiency of the workers , it also increases the efficiency of the company, it also reduces the cost and also increase the overall productivity. Workers are also motivated if they are given reward for their work. The leader should keep in mind that he should motivate for that can be achieved if the goal are not not achieved the workers will be dishearten.
Answer:
a) Seizing the farms from his political rivals, and giving them to his friends, even when they do not know about farming, will result in less economic growth, because the human capital employed in farming is now of less quality. If things turn sour, a famine could even result (there have been many examples of this kind of situation throughout history).
b) This kind of red-tape will result in less economic growth, because investments that could have been made during the current year, will be postponed at least one year due to the bureaucracy.
c) The government of Tempestia is improving the judiciary, granting it independence and credibility. This will result in more economic growth because now both citizens, and international investors have more confidence in the country, since they feel that their property rights will be enforced, giving them an incentive to invest and take risks.
d) This kind of protectionist policies will likely result in less economic growth because the lack of international trade makes things more expensive for consumers, keeping their incomes from growing, and also because protectionism leads to the misallocation of resources by keeping afloat inefficient economic sectors that under a free trade system would otherwise collapse to give way to more efficient sectors.
