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Katena32 [7]
1 year ago
12

When valuing a firm with the weighted average cost of capital, the blank______ value of the firm can be estimated by assuming a

constant perpetual growth rate for cash flows beyond the horizon.
Business
1 answer:
Ludmilka [50]1 year ago
7 0

The firm's blank command line value can be calculated by assuming a continual perpetual rate of growth for cash flows beyond the horizon.

<h3>How does terminal value work?</h3>

An asset, company, or project's value after the anticipated time frame at which future cash flows can be predicted is known as its terminal value (TV). A business will supposedly continue to grow at a specific rate after the forecast period, according to the concept of terminal value.

<h3>Uses for terminal value:</h3>

The terminal value (TV) of a business is its estimated present value after the explicit forecast period. The Gordon Growth Model, special discount cash flow, and residue left earnings computation.

To know more about terminal value visit:

brainly.com/question/25296684

#SPJ4

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A large life insurance company has decided to switch from using a strong fear appeal to a humorous approach. What are the streng
BlackZzzverrR [31]

Answer:

Explanation:

A fear approach is meant to scare people and make them aware that they are only human and that bad things can happen. This would push them towards buying the insurance package. A humorous approach would focus more and a funny message of why it is important. This change would be targetting the same audience but with a completely opposite message which may not reach people the same way, especially if those individuals do not like the humor aspect of it and are not longer scared from the previous fear strategy that the company would have had.

5 0
2 years ago
The common stock of Alpha Manufacturers has a beta of 1.14 and an actual expected return of 15.26 percent. The risk-free rate of
Gre4nikov [31]

Answer: d. The actual expected stock return indicates the stock is currently underpriced.

Explanation:

According to CAPM, the expected return is:

= Risk free rate + beta * (market return - risk free rate)

= 4.3% + 1.14 * (12.01% - 4.3%)

= 13.09%

The actual expected return is greater than the CAPM expected return.

This stock is underpriced because it is bringing in a higher return than CAPM predicted based on the market.

8 0
3 years ago
Police policies and practices have also undergone a transformation in order to adapt to the economic changes brought about by th
kupik [55]

Answer:

E. all of the above are examples of this adaptation.

Explanation:

Based on the information and answers provided it can be said that all of the above are examples of this adaptation. All of these cut backs were done in order to save money for more important aspects within the police policies and practices. While expanded use of technology systems and joint forces with other county governments were done in order to facilitate the jobs and cut down on time needed for certain practices which in term saved money.

7 0
3 years ago
Which statement is true?
horrorfan [7]
I think it can be the "D"
4 0
3 years ago
Shi Import-Export’s balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common e
Mamont248 [21]

Answer:

Shi Import-Export’s  WACC is 9.44%

Explanation:

WACC is the minimum return that a project MUST  offer before it can be accepted. It shows the risk of the company

<em>Capital Source            Weight         Cost             WACC</em>

Debt                                30%          4.5%               1.35%

Preferred Stock               5%           5.8%               0.29%

Common Equity             65%           12%.               7.80%

Total                              100%                                 9.44%

<em><u>Cost of Debt </u></em>

Cost of Debt = Interest × ( 1-tax rate)

                     = 6% ×  ( 1-0.25)

                     = 4.5%

<em><u>Cost of Preferred Stock</u></em>

Cost of Preferred Stock = 5.8%

<em><u>Cost of </u></em><u>Common Equity</u>

Cost of Common Equity = 12%.

<em><u /></em>

3 0
2 years ago
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