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
Normally, a person with a high level of education makes more money than a person without an education.
WITCHER [35]

Answer: true

Explanation:

8 0
3 years ago
Pease Answer ASAP. I need help with sources to answer the following question:
cestrela7 [59]

Answer:

No, a college degree can help you earn a better salary but nothing is guaranteed. For example, someone with a college degree earns on average around $50,000 per year, while those with only a high school degree earn around $28,000 (that is almost half of a college graduate).

But the salary you earn is not guaranteed, it might be much higher or it might be zero. If you work hard you might get a raise pretty soon or you can get promoted, but if you are lazy then you can get fired.

The income classification is based on income, not on education. There are people who never graduated from college that are extremely rich, e.g. Bill Gates, Mark Zuckerberg, but they are not the majority. That is why they serve as examples so often. Most rich people actually do have a college degree, but they are rich not because of their college degree, but because of their work.

6 0
3 years ago
Which factors decrease because of protectionism? competition job security domestic production goodwill with trade partners impor
sveticcg [70]
Protectionism<span> is the economic policy of restraining trade between states through certain methods. From the choices listed above, I think the correct answer is the third option. The factor that would </span>decrease because of protectionism is <span>goodwill with trade partners.</span>
6 0
3 years ago
alicia worked in the customer service department and received a large amount of e-mail. her job required her to open e-mail and
Daniel [21]
Wait a sec. Is the multiple choice 
Antivirus Cleaner
Data encryption
Firewall

Because if its that, I think it might be the first one because, I think firewall blocks websites and encryption protects the actual computer. Antivirus can notify her if something it up with the emails right away.
8 0
3 years ago
Read 2 more answers
At the end of Year 2, retained earnings for the Baker Company was $1,850. Revenue earned by the company in Year 2 was $2,100, ex
icang [17]

Answer

Retained earnings at the beginning of Year 2 was: $1,450

Explanation

Revenue = $2,100

Retained Earnings Closing Balance = $1,850

Expenses = $1,150

Dividends = $550

Retained Earnings Closing Balance = Revenue - Expenses - Dividends + Retained Earning Beginning Balance

$1,850 = $2,100 - $1,150 - $550 + Retained Earning Beginning Balance

Retained Earning Beginning Balance = $1,450

5 0
3 years ago
Other questions:
  • When a firm takes existing products and attempts to sell them to new markets, this growth strategy is considered: A. Market deve
    8·1 answer
  • Red Mountain, Inc. has the following information from its payroll records: Salaries and wages earned by employees $ 180,000 Less
    11·1 answer
  • Which appraisal method would be most useful in appraising an unusual building which has a very limited and specific use?
    14·1 answer
  • Diversification may dissipate value if it is wrongly based on: a. transferring competencies. b. realizing economies of scope. c.
    7·1 answer
  • McCoy's Fish House purchases a tract of land and an existing building for $910,000. The company plans to remove the old building
    12·1 answer
  • Which of these would most likely cause an increase in the price of an item?
    14·1 answer
  • In Illinois Mobile homes are generally considered?
    15·1 answer
  • On their second date, Colby and Mac spend a considerable amount of time talking about their pasts, revealing their likes and dis
    14·1 answer
  • A pension fund has an average duration of its liabilities equal to 15 years. The fund is looking at 5-year maturity zero-coupon
    14·1 answer
  • True or false: Controlling involves developing goals and preparing various budgets to achieve those goals.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!