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Keith_Richards [23]
1 year ago
11

Estimates of a stock's intrinsic value calculated with the free cash flow methodology depend most critically on _______.

Business
1 answer:
lubasha [3.4K]1 year ago
4 0

Estimates of a stock's intrinsic value calculated with the free cash flow methodology depend most critically on the terminal value used.

What is intrinsic value of stock?

A thing, asset, or financial contract can have intrinsic value if it has some basic, objective value. It may be a good buy or a good sale if the market price is less than that value. There are various approaches for determining a reasonable appraisal of a share's intrinsic value when reviewing equities.

What does terminal value mean?

The worth of a firm, project, or asset after the period for which future cash flows can be predicted is known as its terminal value (TV). After the projected period, terminal value assumes a company will continue to expand at a specific pace indefinitely.

Learn more about intrinsic value: brainly.com/question/14582100

#SPJ4

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Julie Brown is a single woman in her late 20s. She is renting an apartment in the fashionable part of town for $1,000 a month. A
Yakvenalex [24]

Answer:

a. Julie should continue live in her own apartment.

b. She should then purchase the condo

c. Home maintenance cost and tax benefit.

d. She should live in her own apartment and rent the condo after purchase.

Explanation:

Buying cost of condo $175,000

Loan interest amount  $8,400 [ $175,000 * 80% * 6%]

Insurance premium $10  [560 - 550]

Property taxes $1,000

Maintenance expense $875  [$175,000 * 0.5%]

Total additional cost per year $10,280

If Julie plans to buy the condo she will have to incur additional cost of $10,280 per annum.

b. If the price of condo increases by 3.5% per year then she should consider buying the condo.

5 0
3 years ago
A(n) ______ cost requires a future outlay of cash and is relevant for current and future decision making. Multiple choice questi
Liono4ka [1.6K]

Answer:

out-of-pocket

Explanation:

In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

Cost pool is simply the amount of money spent by a firm on a particular activity.

Generally, an activity-based costing uses numerous cost pools such as manufacturing cost or customer services and numerous cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.

Generally, an out-of-pocket cost requires that an individual or business outlay their future cash-flow and it must be relevant for current and future decision making.

5 0
3 years ago
In the context of Lazarus's model of appraisal, which of the following defines the term reappraisal? a. Determining whether reso
gladu [14]

Answer:<u><em>(d.) Evaluation of whether the response made to a demand or threat was effective</em></u>

Explanation:

Richard Lazarus stated that stress is a process where the manufacturing of stressors by the surrounding, and the effect on an individual subjected to these stressors.  

He also stated that these cognitive appraisal will happen when a individual considers two major element that add in his response to stress. These two element are as follow :

The baleful propensity of the stress to the individual, and

The classification of resources required to decrease, endure or decimate the stressor and the stress it produces.

3 0
3 years ago
What percentage of those over the age of 75 in the united states has never married?
yan [13]
In the year 2000, the US census showed that 9.1% of those over 75 had not married so the percentage is relatively low and from 75-84 yrs old, about 50% were still married, 40% were widowed and 5.4 % were divorced.
6 0
3 years ago
Both the Onus ferry operator in the monopoly market and each of the Yuri ferry operators in the perfectly competitive market wil
Lisa [10]

Answer: Please refer to Explanation.

Explanation:

Monopoly.

The 2 reasons why the monopoly’s marginal revenue will always be less than its price are;

a) Even though Monopolies have very large influence on the prices of goods and services they offer, for a Monopoly to sell more goods, they generally have to lower their prices. This will lead to a situation where Marginal Revenue, which is the additional revenue made per additional unit sold will be less than Price because additional revenue for a new unit will be less than the last one because prices are dropped .

b) A Monopoly's demand schedule is downward sloping. This means that demand rises as prices drop. As prices drop therefore, more goods will be sold but the marginal revenue will be less because prices had to be dropped to get an additional unit to be sold. That unit therefore will bring in less revenue than the last unit.

Perfectly Competitive Market

In such a market, the seller is a Price Taker. This means that sellers in this market do not sell at a price that they want but rather at a price the market has established to be the Equilibrium. This is because of the high competition in the market. Since they are all selling at the same price, this means that every additional revenue they get is the same as the price the market charges. This means that Price equals Marginal Revenue in this market.

3 0
2 years ago
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