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Keith_Richards [23]
2 years 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]2 years 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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Assuming two investments have equal lives, a high discount rate tends to favor Group of answer choices the investment with even
notka56 [123]

Answer:

the investment with large cash flow early

Explanation:

This can be illustrated with an example.

There are 2 investments A and B

The cash flows of A =

Cash flow in year 1 = $50,000

Cash flow in year 2 = 0

Cash flow in year 3 = 0

The cash flows of B =

Cash flow in year 1 = 0

Cash flow in year 2 = 0

Cash flow in year 3 = 50,000

Discount rate for both investment is 40%

Present value of A = $35,714.29

Pesent value for B = $18,221.57

It can be seen that the investment with the higher cash flow early has a higher present value

3 0
3 years ago
Miracle Green Corporation operates two garden supply stores: A and B. The following information relates to store A: Sales revenu
Volgvan

Answer:

A's segment profit margin is: $151,000

Explanation:

<u>Calculation of A's segment profit margin</u>

Sales revenue                                               $ 810,000

Less Variable operating expenses             ($319,000)

Controllable Contribution                             $491,000

Less Fixed expenses:

Traceable to A and controllable by A        ($230,000)

Traceable to A and controllable by others ($111,000)

Profit Margin                                                  $151,000

8 0
3 years ago
5. If you enter a road from a driveway, alley or roadside you must:
8_murik_8 [283]

Answer:

If you enter a road from a driveway, alley or roadside you must:

Yield to vehicles already on the main road.

Explanation:

The concept of right to way is supposed to be understand since there are no law that actually grants the right of way since it only states when the right of way is to be yielded. This concept has to be considered and well understood by all motorists to avoid conflict on roads. These conflicts often cause accidents which can lead to possible loss of life. Thus the rules governing right of way have to be taken very seriously to minimize the probability of accident.

In the following cases the right of way has to be yielded;

1. When one is at a yield sign for example; a stop sign

2. At a pedestrian crosswalk

3. At intersections that don't have traffic lights or where there is uncontrolled movement

4. At T intersections where one has to yield to motorists already on the main road

5. When one needs to turn left into the main road, one needs to yield to oncoming vehicles on the main road

6. One one is moving from a parking lot to the pavement

In our case, rule number four applies since one needs to enter from a driveway alley or roadside to the main road. This means that one on the driveway needs to yield to vehicles already on the main road.

3 0
3 years ago
Read 2 more answers
Research and then discuss the two types of equity found on the balance sheet that contribute to total stockholder’s equity for t
marshall27 [118]

The equity on the balance sheet that contribute to total stockholder’s equity for the corporation are:

  • stockholders' equity
  • owner's equity

<h3>What is a total stockholder’s equity?</h3>

The total stockholders' equity means the total value of assets that remains in a business after all the total liabilities have been settled.

However, the stockholders' equity is the most important for rewarding stockholder investment because it is the basis at which a dividend for the stockholder will be calculated.

Read more about stockholder equity

<em>brainly.com/question/14032844</em>

#SPJ1

7 0
2 years ago
The next dividend payment by Hoffman, Inc., will be $2.65 per share. The dividends are anticipated to maintain a growth rate of
IrinaK [193]

Answer:

jvةنىعي تىهاخو٦ى ةلهةق ظىنلر تىلاىلا يعنب ان هناك الكثير

4 0
3 years ago
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