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
Outsourcing is becoming more and more common, but it is a controversial idea in the United States. Why do you think this is such
aliya0001 [1]

Answer:

Outsourcing is a contested idea because the original company loses control of the job they are trying to complete. Outsourcing is a bad idea because it also causes jobs to be lost.  (you might want to change the wording a bit.)

Explanation:

8 0
3 years ago
Safety and self-actualization are examples of __________. A. Credibility appeals b. Emotional appeals c. Selective appeals d. Lo
Eduardwww [97]

Safety and self- actualization are examples of emotional appeals.

<h3> </h3><h3>What is emotional appeal?</h3>

An emotional appeal is a method of persuasion and sentimental approach designed mainly to create an emotional response. Emotional appeal is specially used in advertising and politics.

For employees, job security, safety, and self-actualization matters the most. The employer can boost employees' motivation and improve their efficiency by offering them all of the above.  

Employees emotions can be attached to the job by way of developing in them a feeling of control and leadership, by appreciations and offering permanency.

Hence, safety and self-actualization are examples of emotional appeal.

Learn more about emotional appeal here:

brainly.com/question/1748019

8 0
2 years ago
The capital projects fund of Hood River completed construction of an addition to its city hall at a cost of $4,000,000. The city
Vanyuwa [196]

The capital projects fund account for the 10 percent retainage as (B) II only.

<h3>What is retainage?</h3>
  • Retainage is a percentage of the agreed-upon contract price withheld until the work is substantially completed to ensure that the contractor or subcontractor will fulfill its responsibilities and complete a construction project.
  • Retention is money kept back by one party in a contract as security for unfinished or defective work.
  • Assume the contract is worth $20,000 and you're submitting a paid app after finishing 25% of the work.
  • So you earned $5,000 during the pay period, but retainage is 5%. The current progress payment has been reduced by $250.
  • As a result, the "Amount Due for this Request" will be $4,750.

So, in the given situation the capital projects fund account for the 10 percent retainage as (II) the credit for $400,000 to Contracts Payable-Retained Percentage, that is (B) II only.

Therefore, the capital projects fund account for the 10 percent retainage as (B) II only.

Know more about retainage here:

brainly.com/question/24101126

#SPJ4

The correct question is given below:
The capital projects fund of Hood River completed the construction of an addition to its city hall at a cost of $4,000,000. The city council approved payment of the amount due to the general contractor, less a 10 percent retainage. How should the capital projects fund account for the 10 percent retainage?

I. As a credit of $400,000 to Deferred Revenue-Retained Percentage

II. As the credit for $400,000 to Contracts Payable-Retained Percentage.

A. I only

B. II only

C. Either I or II

D. Neither I nor II

3 0
1 year ago
Challenges encountered in satisfaction of human wants​
bearhunter [10]

Explanation:

They are unlimited/many. Human needs are never restricted, they are infinite and keeps on changing because of various factors. ...

Scarce resources to satisfy them. ...

are recurrent/felt again and again. ...

some are complimentary. ...

change with time age and gender.

8 0
3 years ago
question 14(multiple choice worth 5 points) (04.02 mc) who was intended to benefit from the land act of 1800? a large-scale farm
oksano4ka [1.4K]

Since the government aimed to make westward migration more appealing to immigrants, "A poor family that coveted property" was primarily those who benefited.

Due to their inability to purchase a farm at an affordable price, many ended up squatting on public property without a valid title. The Harrison's Land Act of 1800 decreased the minimum purchase size from 640 acres to 320 acres and added a credit provision. A quarter of the total cost had to be paid up front, and the remaining amount had to be paid over the course of four years with an extra year added on for late payments.

To learn more about Land Act of 1800 here

brainly.com/question/697970

#SPJ4

5 0
11 months ago
Other questions:
  • To be useful, market research has to be _____.
    12·2 answers
  • How might the telemarketer’s job be redesigned so that employees are more satisfied and challenged by their work? Is telemarketi
    7·1 answer
  • You are scheduled to receive annual payments of $3,600 for each of the next 12 years. The discount rate is 8 percent. What is th
    9·1 answer
  • 3 oz x 6 feedings = 18oz per day X 30 days =
    5·1 answer
  • How would the U.S. government most likely react to a boom in the economy?
    9·1 answer
  • Mariota Corp. just paid a dividend of $4.30 per share on its stock. The dividend growth rate is expected to be 3.2 forever and i
    9·1 answer
  • Your client submits an application to rent a condo unit. He has excellent credit and has had the same job for a long time. He us
    15·1 answer
  • DO
    6·1 answer
  • Cullumber Co. invested $1,100,000 in Riverbed Co. for 25% of its outstanding stock. Riverbed Co. pays out 30% of net income in d
    15·1 answer
  • With an order instrument, the payee must be identified with certainty, because the transfer of the instrument requires his or he
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!