Answer:
the indifference between receiving $250 today or is $235.85
Explanation:
The computation of the indifference between receiving $250 today or is shown below:
Here we determine the present value
= Amount ÷ (1 + risk free rate of interest)
= $250 ÷ (1 + 0.06)
= $250 ÷ 1.06
= $235.85
Hence, the indifference between receiving $250 today or is $235.85
The same is relevant and considered too
Answer:
664,000 Company's equity
Explanation:
sales 1,660,000
COGS (850,000)
G&A cost (585,000)
EBIT 225,000
Interest expense (59, 000)
EBT 166, 000
Income tax (66,400)
Net income 99,600
We now calculate the present value of the equity based on the free cash flow:
FCF 99,600
k_e 15%
grow = 0
99,600/0.15 = 664,000 Company's equity
Answer:
183,333.33 shares
Explanation:
The computation of the shares of stock need to be sold is shown below:
= Total amount required to expand its current operations ÷ subscription price
= $3,300,000 ÷ $18 per share
= 183,333.33 shares
This is the answer and the same is not provided in the given options
We simply divide the Total amount required to expand its current operations by the subscription price so that the accurate shares can come.
All other information which is given is not relevant. Hence, ignored it
Answer:
Enterprise resource planning
Explanation:
An enterprise resource system is a software suite that integrates, automate and streamlines the business processes and operations.
By acquiring an enterprise resource system, the production manager Marvin McNealy will be able to:
1. Improve efficiency and provide varied data analysis of all related business operations.
2. Customize the ERP to meet requirements of the various divisions.
3. Improve business operations through standardization of workflows across all divisions.
4. Improve data integrity, analysis and security across the divisions.
5. Ensure comprehensive visibility and reporting across all the divisions.