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
Lemur [1.5K]
3 years ago
8

A company’s weighted average cost of capital is 10.8% per year and the market intrinsic value of its debt is $33.1 million. The

company’s free cash flow next year is expected to be $4.7 million and the free cash flow is expected to grow forever at a rate of 3.7% per year. If the company has three million shares of common stock outstanding, what is the intrinsic value per share? Question 6 options: A) $13.72 B) $9.48 C) $11.03 D) $12.24 E) $15.12
Business
1 answer:
VashaNatasha [74]3 years ago
4 0

Answer:

C. $11.03

Explanation:

We need to first compute the firm's value which is shown below.

Firm's value = Free cash flow ÷ (Weighted average cost of capital - Growth rate)

Firm's value = $4.7 million ÷ ( 10.8% - 3.7%)

= $4.7 million ÷ 7.1%

= $66,197,183

Stock price = (Firm value - Debt) ÷ Number of shares

= ($66,197,183 - $33,100,000) ÷ 3,000,000

= $33,097,183 ÷ 3,000,000

= $11.03

You might be interested in
Vinnie (our friend in the video) had a lot of credit cards, and he did have fun with them! Then he nearly went broke. What was t
anyanavicka [17]

The main thing Vinnie did wrong was have multiple credit cards, and it say sin the question 'had fun with them' he probably did not monitor how much money he was spending.

8 0
3 years ago
Which is a commonly used resource for international ethical guidelines for human subjects research?
Andrei [34K]

Answer:

CIOMS International Ethical Guidelines for Biomedical Research Involving Human Subjects

Explanation:

International Ethical  Guidelines for  Health-related Research  Involving Humans  are prepared by the Council for International Organizations of Medical Sciences (CIOMS)  in collaboration with the  World Health Organization (WHO) . The ethical justification for undertaking health-related research involving humans is its  scientific and social value: the prospect of generating the knowledge and the means   necessary to protect and promote people’s health. Patients, health professionals, researchers,  policy-makers, public health officials, pharmaceutical companies and others rely on the  results of research for activities and decisions that impact individual and public health,  welfare, and the use of limited resources. Therefore, researchers, sponsors, research ethics  committees, and health authorities, must ensure that proposed studies are scientifically  sound, build on an adequate prior knowledge base, and are likely to generate valuable  information.  

4 0
3 years ago
Hal Gore won a $1 million prize for special contributions to environmental research. This prize is awarded for public achievemen
Vikki [24]
I think the answer is A
7 0
3 years ago
An "injunction" tells us what we "are not" or "should not be." an example is "don't be independent."
earnstyle [38]
An injunction is a strong, authoritative warning or order to do something. An injunction will let a person know how they should be behaving, when they are acting up and how to properly follow directions. A person giving a command or instructions is often using an injunction. 
6 0
3 years ago
11. Effective communication with patients and co-workers is an important skill for practice managers. Describe what you will do
kolbaska11 [484]

Answer:

The dos and donts in excersing active listening

Explanation:

Active listening helps someone understand what the party is trying to say, even if the message is unclear or ambiguous.  As a practice manager, the following actions will enhance or undermine active listening.

<u>The Do's</u>

  1. Nod in agreement
  2. Maintain eye contact
  3. Offer positive reinforcement with phrases such as 'yes,' ' great' or 'indeed.'
  4. Positive body posture such as facing the speaker and smiling
  5. Ask relevant questions
  6. Seek clarification

<u>The Don't s</u>

  1. Avoid noise: switch off audio devices such as radio, computers while listening.
  2. Do not interrupt or cut off the speaker.
  3. Avoid receiver biases. Keep an open mind, and don't judge the speaker's message before its communicated.
  4. Avoid listener's appreciation: Don't fear that you might not understand the speaker's message.
  5. Keep off distractions such as picking phone calls and reading.

3 0
3 years ago
Other questions:
  • A company's flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,
    13·1 answer
  • On July 1, Runner's Sports Store paid $14,000 to Corona Realty for 4 months rent beginning July 1.Prepaid Rent was debited for t
    8·2 answers
  • Bill thought he had received the best deal on his riding mower. Shortly after the purchase, Bill started to notice certain disad
    11·2 answers
  • 5 find the present value of $7,000 to be received one year from now, assuming a 3 percent annual discount interest rate. also ca
    10·1 answer
  • In October of the current year, Jasmine received a $15,520 payment from a client for 32 months of rent. The rental period begins
    15·1 answer
  • Suppose that over the past decade, US inflation is greater than in Mexico. Assume that the dollar appreciates relative to the Me
    13·1 answer
  • A client is interested in becoming a limited partner of a DPP (direct participation program). He signs a subscription agreement
    5·1 answer
  • Mary is introduced to three new people at a party. Later, however, she cannot remember the names of any of her new acquaintances
    6·1 answer
  • This video speeds through over 10 common mistakes people make that leave them open to identity theft. list at least 5 of them he
    5·1 answer
  • Which of the following is included in the M-2 definition of the money supply but NOT in the M-1 definition?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!