Answer:
can we see the choices so we can answer.
Explanation:
Answer: b. select appropriate corporate-level strategies
Explanation:
Prior to setting pricing options for its products to maximize profit, a company must select appropriate corporate-level strategies.
This is necessary in order to ensure that the strategies aligns with what the organization is willing to do in order to achieve its profit maximization goal.
I am not rather certain what you imply by "text that you pay when making a profit selling a house is an example of", I will proceed to presume your intentions were to the following word, "tax" and follow-up with this: A capital gains tax would be an instance of devising a sort of investment or gain (such as a house) And you have to remuneration taxes for it.
Answer:
$36.8 million
Explanation:
The computation of the free cash flow is shown below:
= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure.
= $56 million × ( 1 - 0.30) + $5.6 million - $2.7 million - $5.3 million
= $39.20 million + $5.6 million - $2.7 million - $5.3 million
= $36.8 million
All other information which is given is not relevant. Hence, ignored it
Answer:
P0 = $28
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D1 / (r - g)
Where,
- D1 is the dividend expected for the next year
- r is the required rate of return
We first need to calculate r using the CAPM. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the market rate of return
r = 0.05 + 1.4 * (0.15 - 0.05)
r = 0.19 or 19%
Now we can calculate the price of the stock today.
P0 = 3.92 / (0.19 - 0.05)
P0 = $28