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Katen [24]
3 years ago
12

A firm expects to earn $10,000,000 in cash in 2018. The firm also expects to increase its cash earnings by 2% each year in perpe

tuity. Using a discount rate of 7.50%, what is the current value of this firm?
Business
1 answer:
deff fn [24]3 years ago
3 0

Answer:

$181,818,181.82

Explanation:

The computation of the current value of this firm is shown below:

= (Firm expectation to earns in cash) ÷ (discount rate - increased cash earning percentage)

= ($10,000,000) ÷ (7.5% - 2%)

= ($10,000,000) ÷ (5.5%)

= $181,818,181.82

In order to find out the current value, we considered all the given information that are mentioned in the question

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Why the economy sees business cycle fluctuations rather than slow, smooth growth is a central issue of ______.
____ [38]

The financial system sees commercial enterprise cycle fluctuations in preference to slow, easy boom is a crucial trouble of Economic shocks.

The required details for Economic shocks in given paragraph

An financial surprise refers to any extrude to fundamental macroeconomic variables or relationships that has a considerable impact on macroeconomic effects and measures of financial performance, which includes unemployment, consumption, and inflation. Shocks are regularly unpredictable and are generally the end result of occasions concept to be past the scope of regular financial transactions. Economic shocks have full-size and lasting outcomes at the financial system, and, in accordance to actual commercial enterprise cycle theory (RBC), are concept to be the foundation purpose of recessions and financial cycles. Economic shocks are random, unpredictable occasions which have a full-size effect at the financial system and are due to matters outdoor the scope of financial models.

Economic shocks may be labeled with the aid of using the financial area that they originate from or with the aid of using whether or not they mainly affect both deliver or demand. Because markets are connected, the outcomes of shocks can pass via the financial system to many markets and feature a main macroeconomic effect, for higher or worse.

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6 0
1 year ago
Careers in the Health Science Career Cluster include:
aleksklad [387]

Answer:

  • radiologist
  • occupational therapist

Explanation:

Careers in the health services cluster revolve around working in hospitals, health centers, clinics, patients’ homes, chemists, pharmaceutical outlets. The people in this cluster are healthcare workers such as doctors, clinical officers, pharmacists, paramedics, and others title in the medical services.  A radiologist work with diagnostics equipment in hospital laboratories. An occupational therapist is a healthcare professional who assists patients in recovering or regain the full use of their abilities.

6 0
3 years ago
Read 2 more answers
Stoneheart Group is expected to pay a dividend of $3.25 next year. The company's dividend growth rate is expected to be 3.5 perc
Vera_Pavlovna [14]

Answer:

$37.79

Explanation:

The computation of the stock price is shown below:

Data given in the question

Next year dividend = $3.25

Growth rate = 3.5%

Required rate of return = 12.1%

So, the stock price is

= Next year dividend ÷ (Required rate of return - growth rate)

= $3.25 ÷ (12.1% - 3.5%)

= $3.25 ÷ 8.6%

= $37.79

We simply apply the above formula to find out the stock price

5 0
3 years ago
What is the main problem that sellers suffering from marketing myopia​ face?
Tanya [424]
The answer is "<span>They focus more on products than the​ customer's underlying need.".
</span>
Marketing Myopia is marketing term as it shows by its name, referred to short-sighted and inward looking way to deal with promoting that spotlights on the requirements of the organization as opposed to characterizing the organization and its items as far as the clients' needs. It brings about the inability to check and accommodates to the quick changes in their business sectors or markets.
8 0
3 years ago
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Do you think being charitable can be taught?
lesya692 [45]

Answer:

Yes, I feel like anyone can be taught what charitable means and what it is. Its all about helping..and anyone could learn that without being taught

Explanation:

5 0
3 years ago
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