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
Likurg_2 [28]
4 years ago
15

Suppose Boyson Corporation's projected free cash flow for next year is FCF1 = $100,000, and FCF is expected to grow at a constan

t rate of 6.5%. If the company's weighted average cost of capital is 11.5%, what is the firm's total corporate value?
Business
1 answer:
Molodets [167]4 years ago
5 0

Answer:

Value of firm today = $2,000,000

Explanation:

Provided details are,

Future Cash Flow = $100,000

Expected growth rate = 6.5%

Weighted average cost of capital = 11.5%

Firm's total corporate value = \frac{Future\ Cash\ Flow}{Cost\ of\ capital - growth\ rate}

= \frac{100,000}{0.115 - 0.065}

= \frac{100,000}{0.05}

= $2,000,000

Thus, value of firm today with the details provided = $2,000,000

You might be interested in
Managing proactively instead of reactively is an example of which of the following?
lubasha [3.4K]

Answer:

good macromanagement

Explanation:

3 0
3 years ago
Read 2 more answers
FL Systems Inc. and Oryxo Systems Inc. are two competing firms. FL Systems Inc. has $300,000 in tangible assets and $200,000 in
BartSMP [9]

Answer:

C

Explanation:

Based on the scenario being described within the question it can be said that FL Systems Inc. will find it harder than Oryxo Systems Inc. to attain competitive advantage. This is mainly due to the fact that FL Systems Inc. has a large percentage of their money locked in intangible assets. These are assets that cannot be touched or physically used by the customers which makes it very difficult for customers to see the potential value which ultimately hurts their competitive advantage.

8 0
3 years ago
How is knowing one's own credit score important in avoiding predatory scams
Lerok [7]
You can tell the difference because your credit score can decrease if you try to check it  it may decrease everyday
4 0
3 years ago
If Vernon and his parents forget to file the FAFSA, what are the consequences?
butalik [34]
Fafsa is the student financial aid program, so Vernon would not be able to obtain financial aid for college:( poor vernon
3 0
4 years ago
Strickland Company sells inventory to its parent, Carter Company, at a profit during 2012. One-third of the inventory is sold by
Rudik [331]

Answer:<u><em> Cost of goods sold</em></u> would be a debit entry to eliminate the intra-entity transfer of inventory.

Cost of goods sold is known as the direct costs ascribable to the production of the commodity sold in a organization. This considers the cost of the materials that has been substantially used in making the commodity including the labor costs.

<u><em>Therefore, the correct option is (b)</em></u>

5 0
3 years ago
Other questions:
  • Excerpts from Neuwirth Corporation's comparative balance sheet appear below: Ending Balance Beginning Balance Cash and cash equi
    14·1 answer
  • A company that is introducing a new product in its final form to a geographically limited market to see how well the product sel
    9·1 answer
  • And currency risks are to key country success factors as land costs and​ ________ are to key region success factors.
    11·1 answer
  • Which savings account will earn you the least money?
    5·1 answer
  • In preparation for developing its statement of cash flows for the year ended December 31, 2021, Rapid Pac, Inc., collected the f
    8·1 answer
  • Lenny works for Mechanical Engineers, P.A. While working on a Mechanical Engineers project, Lenny is injured. Under state worker
    11·1 answer
  • On January 2, 2017, Swify Corporation began construction of a new citrus processing plant. The automated plant was finished and
    8·1 answer
  • A rise in government spending could Group of answer choices a. decrease both the size and scope of government. b. increase the s
    11·1 answer
  • US Government uses <br> ____ income taxes to collect revenue.
    13·2 answers
  • Can you outsmart me test? I will give you 20 brainly points!
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!