Answer: 12.5 %
Explanation:
Hi, to answer this question we have to apply the simple interest formula:
I = p x r x t
Where:
I = interest (investment after interests - principal; 12000-8000=4000)
P = Principal Amount (initial invest)
r = Interest Rate (decimal form)
t= time
Replacing with the values given
4,000= 8,000 (x) 4
Solving for x
:
4,000= 32,000x
4,000/ 32,000 =x
x= 0.125
Since the interest rate is in decimal form, we have to multiply it by 100 to obtain the percentage.
0.125 x 100 = 12.5 %
Feel free to ask for more if needed or if you did not understand something.
Answer:
Firm value in millions 1,605 (one thousand six houndred five milllions)
Explanation:
To evaluate a firm based on the free cash flow we do a procedure similar to gordon dividend grow model

We are going to replace dividend for the free cash flow
and the return for the WACC
notice we are given with the current FCF and for the gordon model we require dividend for the next year. (time=1)
here we need the same
FCF x (1+g) = 120 x (1 + 0.07) = 128.4
WACC .15
grow 0.07

Firm value in millions 1,605 (one thousand six houndred five milllions)
During the prosperity of the america during 1920, it is not well distributed. nearly half of its population still resides in the rural areas where there primary source of income is farming. this is the time that farming is not suited for business. because at that time many manufacturing came and mass production