I think that white winexpensive is heterogeneous
<span>The corporation would be the most suitable for Mr. Glowen. This would shield him from liability in the event that something negative were to occur. The liability for any and all debts would be taken by the company and not by the person himself.</span>
Answer:
The consumer surplus will definitely increase.
Explanation:
The reason is that the manufacturers have purchased the sugar at a high price and now it is available at a lower price. So this means that the price of chocolate must decrease in the market if the price of material input is fallen. But the chocolate prices will take time to fall and as the result the customer is willing to pay lower prices but he is forced to pay more because the manufactured chocolates include sugar which was bought at a higher price. So the consumer surplus will increase.
Answer:
Stock value per share = $136.8
Explanation:
The value of a firm can be determined using the free cash flow and the Discount cash flow model.
The discounted cash flow model values a firm as the the sum of the present values of the future cash flows generated by the assets of the firm discounted at an appropriate required rate of return. This rate of return (discount rate)is called Weighted average cost of capital (WACC)
The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.
Free cash flow to the Firm ( FCFF) is the cash flow from operations minus capital expenditures. It is the cash flow available to all providers of capital after all investments in non-current assets and working capital have been made.
Value of a firm = FCFF (1+g)/(WACC-g)
g- growth rate
Value of Banco = 150 × (1+0.04)/(0.0685- 0.04)
=5473.684211
Value per stock = (Value of the firm - Value of Debt)/ No of stock units
= <u>5473.68 - 0</u>
40 million units
Stock value per share = $136.8