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
AURORKA [14]
3 years ago
13

Justus Motor Co.has a WACC of 11.50%, and its value of operations is $25.00 million. Justus's free cash flow is expected to grow

at a constant rate of 7.00%. What was the last free cash flow, FCF0 in millions?a. $0.95b. $1.05c. $1.16d. $1.27e. $1.40
Business
1 answer:
lakkis [162]3 years ago
4 0

Answer:

FCF_0=1.05

So option (b) is correct option

Explanation:

We have given value of operation PV = $25.00

WACC, that is Ke = 11.50% = 0.1150

It is grow at a constant rat of 7 % so g = 0.07

We have to find the value of FCF_0

We know that value of operation is given by

PV=\frac{FCF_0(1+g)}{Ke-g}

So 25=\frac{FCF_0(1+0.07)}{0.1150-0.07}

FCF_0=1.05

So option (b) is correct option

You might be interested in
Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
Aneli [31]

Answer:

The letter A is the right one.

Explanation:

By promoting deserving employees, Jeffrey will create an environment where employees who act correctly, integrate and present high levels of professionals receive good promotions and will raise their status in the company. This shows that acting in a moral, responsible and ethical manner is rewarding and that is why everyone should follow this level of work that encourages morality and good work.

4 0
2 years ago
All of the following are characteristics of Weberian bureaucracy except:
azamat

Answer:

b. management is the same as the ownership of the organization.

Explanation:

Weberian bureaucracy is the term used for the bureaucracy concept introduced by Max Weber, the famous sociologist and economists. He clearly stated that for any kind of administration the basic need is to maintain some standard characteristics:

Which included hierarchy as basics, therefore, it clearly distinguished the management and ownership and both are on different hierarchy.

Therefore, the correct option is:

b. management is the same as the ownership of the organization.

6 0
3 years ago
In her research paper, Kirstein copied a few paragraphs from a renowned author's work verbatim without placing them within quota
Effectus [21]

Answer:

Word-for-word.

Explanation:

Word for word plagiarism is seen to be an unethical form of writing where the said student or researcher is seen to copy a fellow researchers works verbatim and particularly word for word with also quotation marks too. In as much as this is a bad form for writers, people are always seen to commit themselves in still doing it. This can cause a lawsuit in some places depending on the researcher whose work is been stolen/copied.

In all, it is been tagged an act of intellectual dishonesty which comes with uneasy consequences when it is done to a wrong person; a plagiarized assignment may lead to a failing grade, a suspension, or an expulsion.

4 0
3 years ago
Using accrual accounting, expenses are recorded and reported only: _A. when they are incurred and paid at the same time. B. if t
sleet_krkn [62]

Answer:

C. when they are incurred, whether or not cash is paid.

Explanation:

In accrual accounting, expenses are recorded in the moment they are incurred, even if they have not been paid for.

In fact, the term "accrued expense" means an expense that has been incurred, but not yet paid.

One common example of an accrued expense is accrued wages:

Suppose that a firm hires a worker on March 1, for a wage of $1,000 dollars per month, that is due to be paid at the end of the month (March 31). This worker is earning $33 per day. By March 4, the firm should have recorded accrued wages for $132 ($33 x 4 days) even if no payments will be made until March 31.

4 0
3 years ago
On May 3, 2020, Concord Company consigned 80 freezers, costing $540 each, to Remmers Company. The cost of shipping the freezers
NeX [460]

Answer:

a) $22,010

b) $3,780

c) $25,790

Explanation:

a) In calculating the value of inventory still left, the total value needs to be calculated first,

= (80 freezers * $540) + $820 ( transport fees)

= 43,200 + 820

= $44,020

40 out of 80 freezers have not been sold so,

= 40/80 * 44,020

= $22,010

b) In calculating the profit, subtract the expenses from the sales

Sales = 40 * 700

= $28,000

= 28,000 - Cost of refrigerators - commission of 6% of sales - advertising - installation

= 28,000 - 22,010 - (28,000*0.06) - 180 - 350

= $3,780

c) The amount remitted by the consignor will be,

= Sales - commission - advertising - installation

= 28,000 - (28,000 * 0.06) - 180 - 350

= $25,790

7 0
2 years ago
Other questions:
  • Xyz company is a low-cost provider. xyz is most susceptible to
    8·1 answer
  • Suppose that a worker in agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in zen
    8·1 answer
  • In Section 7, the word warranty is best defined as A) a contract between USATestPrep and its Customers. B) a guarantee of any pa
    7·2 answers
  • Marketers use persuasive communications and product distribution in an effort to make sure its market is _______.
    8·1 answer
  • The gasoline tax:
    9·1 answer
  • If people bought the same market basket of goods as the average consumer again and again the:______.
    8·1 answer
  • Case A.
    15·1 answer
  • For tax reasons, your client wishes to purchase an annuity that pays $100,000 each year for 6 years, with the first payment in o
    14·1 answer
  • Establishing a secure customer or client base is an example of how to deal with this type of risk.
    8·1 answer
  • The minimum amount (planned) of fuel to be aboard a domestic flight within the 48 contiguous united states, after reaching the m
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!