Answer:
3 out of every 5 people
Explanation:
Labor force = 60% of 100 M = 60M
Labor force participation rate = Labor force / Total Population
= 60,000,000 / 100,000,000
= 6/10 = 3/5
The rate therefore is :
3 out of every 5 people are in the labor force
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
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Answer:
a. What is the value today of Steinberg's debt and equity?
b. What is the value today of Dietrich's debt and equity?
c. Steinberg’s CEO recently stated that Steinberg’s value should be higher than Dietrich’s because the company has less debt and therefore less bankruptcy risk. Do you agree or disagree with this statement?
- A. Disagree: a company's value is determined by by its operating income (EBIT), not by there capital structure (M&M theory).
Explanation:
economic expansion 80% chance, EBIT $3.5 million
economic recession 20% chance, EBIT $1.9 million
expected EBIT = (3.5 x 0.8) + (1.9 x 0.2) = $2.8 million + $0.38 million = $3.18 million
Steinberg's debt obligations $980,000 at the end of next year
Dietrich's debt obligations $2,000,000 at the end of next year
total company value = $3.18 million / (1 + 10%) = $2,890,909
Answer:
Dividend per share $ 2.16
Explanation:
Return = Dividend yield + Capital gains yield = 0.08
Dividend yield = Capital gains yield
Div yield 0.08 / 2 = 0.04
Next year dividend:
share Price x dividend yield
$ 55 x 0.04 = $2.2
<u>Current dividend:</u>
We remove the grow factor from next year dividend:
2.2 / (1+0.04) = 2,11538