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Likurg_2 [28]
3 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]3 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

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6 0
3 years ago
Suppose you know a company's stock currently sells for $64 per share and the required return on the stock is 0.12. You also know
jasenka [17]

Answer:

$3.62

Explanation:

Dividend Yield = 0.12/2

Dividend Yield = 0.06

==> (Dividend in One Year)/Current Price= .045

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D0 (Current Dividend) = $3.62

6 0
3 years ago
The use of symbols such as charts, graphs, and signs are best classified as * 1 point oral communication written communication v
Verdich [7]

Answer:

visual communication

Explanation:

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Generally, there are four (4) main types of communication and these includes;

I. Verbal (oral) communication.

II. Non-verbal communication.

III. Written communication.

IV. Visual communication.

Visual communication can be defined as the use of visual elements and symbols such as charts, graphs, and signs to convey ideas and information that effectively creates meaning to the recipient.

In conclusion, visual communication is strictly based on vision or sight.

6 0
3 years ago
During the ________ era, the prevalent business philosophy turned from an emphasis on production to an emphasis on advertising a
Vilka [71]
Hello There!

<span>During the selling era, the prevalent business philosophy turned from an emphasis on production to an emphasis on advertising and selling.</span>

Hope This Helps You!
Good Luck :) 

- Hannah ❤
8 0
3 years ago
Suppose the Digby company shifts focus to only competing in the Thrift and Nano segments, while competing on price by reducing c
Bess [88]

Answer:

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Thus, from the above we can conclude that the correct answer is niche cost leader.

6 0
3 years ago
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