1answer.
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
hichkok12 [17]
1 year ago
14

Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below.

Business
1 answer:
Katarina [22]1 year ago
5 0

The stock price is mathematically given as

P=$57.64

<h3>What is the stock price?</h3>

Generally, the equation for is Value after year  mathematically given as

V=\frac{(FCF for year 5*Growth rate)}{(WACC-Growth rate)}\\\\V = \frac{(55.4*1.05)}{(0.09-0.05)}

V= $1454.25

Hence, the current value is mathematically given as

I=Discounting factor equal to the future cash flows multiplied by their present value

I=\frac{-22.76}{1.09} + \frac{38.8}{1.09^2}+ \frac{43.4}{1.09^3}+\frac{52.3}{1.09^4}+\frac{55.4}{1.09^5}+\frac{1454.25}{1.09^5}

I=$1063.508769

current value for ordinary stock

I'=$1037.508769million

In conclusion, the stock price is

P=(1037.508769/18)

P=$57.64

Read more about the stock price

brainly.com/question/15021152

#SPJ1

You might be interested in
Database Systems is considering expansion into a new product line. Assets to support expansion will cost $750,000. It is estimat
Delvig [45]

Answer:

The net income is $150,500 and the return on assets is 20.06 %

Explanation:

The formula for computing net income and return on assets is shown below and the computation is also made.

Net income =  Sales revenue × Profit margin

                   = $2,150,000 × 7%

                   = $150,500

Return on assets = Net income ÷ total assets

                            = $150,500 ÷ $750,000

                            = 0.2006

                            = 20.06 %

Thus, the net income is $150,500 and the return on assets is 20.06 %

4 0
3 years ago
What does the business cycle shown on this graph suggest about the condition of the economy at point A?
miv72 [106K]

Answer:

C the Ecenomy has been well for while and is

at its highest piont of the cycle

Explanation:

hope it helps

8 0
2 years ago
A wealthy individual has set up a grat. should she die during the time the trust is active, how are the remaining assets in the
Leto [7]

A wealthy individual has set up a grat. should she die during the time the trust is active, the original value plus any appreciation is taxed as part of the grantor's estate.

Taxes are mandatory contributions levied on individuals or groups through a central authority entity—whether or not neighborhood, local, or countrywide. Tax sales finance authorities sports, together with public works and offerings which includes roads and colleges, or programs including Social security and Medicare.

A tax is a mandatory fee or financial rate levied by using any authority on a man or woman or a company to accumulate revenue for public works supplying quality facilities and infrastructure. The amassed fund is then used to fund different public expenditure applications.

Learn more about tax here:brainly.com/question/26316390
#SPJ4

4 0
2 years ago
PLEASE HELP ASAP
ioda
It would have to be  E 
3 0
2 years ago
Read 2 more answers
60 points please help
Trava [24]

Answer:

Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption to meet the requirements of customers or corporations.

8 0
3 years ago
Other questions:
  • A firm's ________ reports the profit or loss for the firm over a specified time period.
    14·1 answer
  • In the chapter, we used Rosengarten Corporation to demonstrate how to calculate EFN. The ROE for Rosengarten is about 7.3 percen
    5·1 answer
  • High levels of inventory hide problems within a production system. Some of the problems that high inventory hide are quality pro
    5·1 answer
  • The type and frequency of security awareness training is contingent on the type of user. For instance, all users might be requir
    12·1 answer
  • Providers cannot maintain inventories of their services, leading them to vary prices according to demand. For example, most hote
    6·1 answer
  • Swifty Pest Control Products has the following information available:
    15·1 answer
  • Harry Rawlings wants to withdraw $10,000 (including principal) from an investment fund at the end of each year for 5 years. How
    6·1 answer
  • WILL GIVE BRANEST PLZ ANSWER FAST
    6·2 answers
  • You start a new business selling a product thats the best of its kind on the market. In addition to this product, what must you
    9·1 answer
  • Clarifying the issues of a problem is the _____ step in the problem solving process.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!