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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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Select all of the information that appears on a bank statement.
Korolek [52]
<span>account number

social security number</span>
8 0
2 years ago
Read 2 more answers
Multinational enterprises (MNEs) have an impact far beyond their firm boundaries. Assume you are working for a small firm that s
In-s [12.5K]

Answer:

Multinational enterprises (MNEs)

Relationship Change as the MNE moves from Globalization 2.0 to Globalization 3.0 operations:

This move means that Indian and Chinese companies would be competing with my local small firm.  The MNE may be looking for cheaper prices for my company's products and services, which the Indian and Chinese companies would more efficiently supply it.  My firm may be on the precipice of liquidating if this MNE is our major customer.  My firm must move fast to become more competitive by differentiating our products and services with better quality and perhaps reduced production costs, to enable it compete more favorably with the Indian and Chinese competitors.  Otherwise, we may regard the relationship as nearing its end and prepare for other opportunities with other companies.

Explanation:

Globalization reduces national boundaries by integrating national economies into a globalized economy, thus enabling companies to compete globally for financial resources, goods, and services.  When Globalization 1.0 happened, countries were globalized and the world became a global village.  When Globalization 2.0 from which the G7 profited largely, companies were globalized.  With the current Globalization 3.0, individuals are being globalized, and the highest beneficiaries are Indian and Chinese nationals who appear better prepared to take on the world, garner most of the important resources to themselves, and call the shots from the boardrooms.  An example is Microsoft's current CEO, Satya Nadella, who is an Indian-American.

4 0
2 years ago
Ou have been hired as the new pricing manager for WCG, which sells cell phone plans to customers. You manage a team of pricing a
andrew-mc [135]

Answer:

1. WCG agrees with its cell plan competitors to raise prices for all customers - Sherman Antitrust Act

2. WCG colludes with another company to stop offering family plan discounts - Sherman Antitrust Act

3. WCG decides to advertise a new plan that is 75 percent off the regular plan, even though it is only 20 percent less - Wheeler-Lea Act

4. WCG promises retail consumers a "wholesale" rate, even though it is the same price as always - Wheeler-Lea Act

5. WCG wants to attract more women to its plans and starts offering female consumers 30 percent off their bill - Robinson-Patman Act

6. WCG offers a discount to teenage males in an effort to get customers from its more trendy competitor - Robinson-Patman Act

8 0
3 years ago
Your neighbor, Bayonetta, offers you an investment opportunity which will pay a single lump sum of $2,150 four years from today.
Olenka [21]

Answer:

18.24%

Explanation:

Annual rate of return is used in determining the return on an investment over a 12 month or one year period.

Annual rate of return = [(future value / cost ) ^( 1/n) ] - 1

future value = 2150

present cost = 1100

n = number of years = 4

(2150 / 1100)^(1/4) - 1 = 0.1824 = 18.24%

3 0
2 years ago
Which example describes sharing risk?
alexandr1967 [171]

Answer:

getting car insurance is the correct answer.

Explanation:

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