Answer:
Consider the following calculations
Explanation:
Expected pay off of investing 1000 in Rothko,LLC= probability of getting oil stock *increase in value ofstock= .37* 63% of 1000
= .37*630= 233.1
Similarly
Expected pay off of investing 1000 in Calder & co = .63* 37% of 1000= .63* 370= 233.1
Of investing 500 in each
Expected pay off= .37 * 63% of 500 + .63* 37% of 500
= .37* 315 + .63* 185= 233.1
Answer:
A. The rate when the inventory was paid for
Explanation:
The U.S. company should register the inventory purchase in their balance sheet using the $/C$ exchange rate at that date the inventory was paid for since that would represent the actual monetary value spent on inventory. The rate is subject to change and, therefore, using the exchange rate at the time of delivery, sale or at the balance sheet date, could incorrectly represent the company's inventory expenses.
Answer:
The total firm value is $10,877 million
Explanation:
Value of Firm = Expected FCF/(WACC - Growth Rate)
= $1,005 million/(0.1386 - 0.0462)
= $1,005 million / 0.0924
= $10,877 million
Therefore, The total firm value is $10,877 million
Answer:
B) Land costs; air and rail systems
and
D) Labor cost; proximity to customers
Explanation:
