Answer:
$75 million
Explanation:
Firm's value = FCF1 / WACC - growth
Equity Value = Firm's value - Debt value
Intrinsic value per share = Equity Value / Number of shares
Therefore Firm's value = $75.0 million / (0.10 - 0.05) = $1,500 million
Equity Value = Firm's value - Debt value = $1500 - 0 debt = $1,500 million
Intrinsic value per share = Equity Value of $1500 / 20 million shares =
$75 million
Answer: $935,000
Explanation:
Net capital spending refers to the amount spent on acquiring new fixed assets.
= 2020 net fixed assets + 2020 depreciation - 2019 net fixed assets
= 5,800,000 + 335,000 - 5,200,000
= $935,000
Answer: $1.50
Explanation:
Based on the information given in the question, we are informed that the variable cost of each box is $1.50 and usually has a contribution margin of $0.80 per box.
We should note that the minimum transfer price that the box division should find as acceptable will be the relevant cost. In this case, the relevant cost is given as $1.50 pee box and therefore, the minimum transfer price will be $1.50.
Answer:
$200,000
Explanation:
The value of the government obligation = $5,00,000, 8%, 20 years bonds payable at 103
Interest expenses = $5,000,000 * 8/100 * 6/12 = $200,000.
Thus, $200,000 will be reported as debt service expenses in the fiscal year 20X7.
The correct answer is choice c, changes in the price level.
Aggregate supply is only affected by capital, labor, and technology in the long run because everything in the economy is assumed to be used optimally. Of the options that are presented, the only option that is not capital, labor or technology is the change in price level, which makes it the correct answer.
