answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zepelin [54]
2 years ago
13

Suppose Boyson Corporation's projected free cash flow for next year is FCF1 = $150,000, and FCF is expected to grow at a constan

t rate of 6.5%. If the company's weighted average cost of capital is 11.5%, what is the firm's total corporate value? a. $2,572,125 b. $2,707,500 c. $2,850,000 d. $3,000,000 e. $3,150,000
Business
1 answer:
bearhunter [10]2 years ago
8 0

Answer:

The total corporate value of the firm is $3,000,000

Explanation:

The total corporate value of the firm is computed as:

Total corporate value = FCF1 / (average cost of capital - Growth rate)

Where

FCF1 is $150,000

Growth rate is 6.5%

average cost of capital is 11.5%

Putting the values :

= $150,000 / (11.5% - 6.5%)

= $150,000 / 5%

= $3,000,000

You might be interested in
A company has the choice of either selling 1,000 unfinished units as is or completing them. The company could sell the unfinishe
professor190 [17]

Answer:

It is more convenient to sell the units unfinished by $500.

Explanation:

Giving the following information:

Units= 1,000

Unfinished:

Selling price= $4.00 per unit.

Complete:

Incremental costs= $1.00 per unit for direct materials, $2.00 per unit for direct labor, and $1.50 per unit for overhead

Selling price= $8.00 each.

We need to calculate the gross profit of each option and choose the more convenient:

Unfinished:

Gross profit= 1,000*4= $4,000

Complete:

Gross profit= 1,000*(8 - 4.5)= $3,500

It is more convenient to sell the units unfinished by $500.

5 0
2 years ago
Harrison Corp. wants to raise its level of service to enhance customer experience. The board of directors send out an email cont
bearhunter [10]

Answer:

Downward communication

Explanation:

Within an organization, downward communication refers to any communication that starts in a higher level of the organization and flows to a lower level of the organization.

In this case, since the board of directors is the highest level of a corporation, any communication that is sent to other parts of the corporation will always be downward communication.

5 0
2 years ago
A type of production that yields customized products or services for each customer is called
victus00 [196]

Answer:

b. Job order production.

Explanation:

Job order production is the process of manufacturing non-standard or unique products for specific customers. Sometimes making a job order production is also called making a work order or making it an individual order, because each order or work is an order placed by the customer. In most cases, custom jobs are created only once. Many manufacturers specialize in mass production of custom products. Buyers come to the manufacturer with a special design or product, and the manufacturer develops and creates an individual product.

A customer-oriented production puts customer satisfaction at the center of each of its business decisions. Customer focus is defined as an approach to sales and customer relations, in which employees focus on helping customers meet their long-term needs and desires. Here, management and employees coordinate their individual and team goals in order to satisfy and retain customers. This contrasts, in particular, with a focus on sales, which is a strategic approach when the needs and desires of a company or seller are evaluated in relation to the client.

Just in Time production is an inventory strategy developed to increase production and productivity. All production processes (in-progress cost) and the type of production taking into consideration the time criteria in order to minimize the associated sub-costs are derived from the Japanese Kanban system. During production, it determines the order of work by considering the production of the next process. This strategy, which states that the order level is reached in the storage process and that the order must be met after this point, provides the most efficient storage volume and production continuity. In short, just in time, the demand is to produce as soon as possible with excellent quality and transport it to the right place at any time.

Job lot production is a production futures contract whose trading volume is below the level required by normal operations. These contracts or lots are available to add liquidity to futures exchanges by allowing smaller "participants" to enter the market.

Process production is a system from production in which a product goes through several processes or stages from production, which will be operated on a more continuous basis; for example, in oil refineries and petrochemical plants, where these processes include liquid or semi-solid materials. In the production of the main product, they say, gasoline, from such in the production process, by-products such as tar or creosote can inevitably arise.

5 0
2 years ago
Which of the following is true regarding systematic study?A) It attributes causes and effects based on intuition.B) It involves
Arturiano [62]

Answer:

D. It involves analyzing relationships based on scientific data

Explanation:

6 0
1 year ago
A(n) _____ staffing approach is compatible with an international strategy but can produce resentment in the host country.
Sladkaya [172]

Answer:

geocentric  

Explanation:

The staffing policy which which seeks for staffing the best people for main jobs throughout the organization, regardless of their nationality is called geocentric policy. It is very much compatible to any international strategy but there can be some resentments in the host country due to cultural myopia.

There can be also lack of some management transfers from the home country  to the host countries also from the host to home. There can be lack of integration also.

8 0
2 years ago
Other questions:
  • The two broad categories of buying behavior are ____ and ____.
    13·2 answers
  • Which of the following is NOT a proposition of the Heckscher-Ohlin model? Countries will completely specialize in the product in
    6·1 answer
  • On January 1, 2016, Lester Company purchased 70% of Stork Corporation's $5 par common stock for $600,000. The book value of Stor
    12·1 answer
  • 12 years ago, Chris purchased an investment for $57,000. The investment earned 9 percent interest each year. Using the equation
    15·1 answer
  • Each machine must be run by one of 19 cross-trained workers who are each available 35 hours per week. The plant has 10 type 1 ma
    12·1 answer
  • Tryon Corp. and Sandoval, Inc. were joint owners of the former Sandy Glass manufacturing facility. An environmental assessment f
    5·2 answers
  • When American Express Co. advertised that it would donate 3 cents per transaction to nonprofit anti-hunger groups over a two-mon
    13·1 answer
  • S) Barkley and James cannot attend training during the exercise. They must attend before 4 May or after 25 May. Identify the con
    13·1 answer
  • The charter of Vista West Corporation specifies that it is authorized to issue 209,000 shares of common stock. Since the company
    6·1 answer
  • Second-degree price discrimination: Multiple Choice results in transfer pricing. None of the answers are correct. is the practic
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!