the last recession changed the way many companies offer support to people and communties in need. many companies

1 answer:

3 0

<span>The recession changed the way social assistance is provided by the means of reducing the specific financial capital allocated to these aspects, and instead encourage employees to take part in various social projects and programs that the company would be implementing.</span>

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If the interest rate is 10 percent, then the present value of $100 to be paid in 2 years is

Lina20 [59]

The answer is exactly 100.

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3 years ago

You plan to invest in one of two home delivery pizza companies, High and Low, that were recently founded and are about to commen

ch4aika [34]

Answer:

$0.60

Explanation:

Computation of Firm High's EPS

Profit before Tax (PBT) = EBIT - Interest on debt

= 500,000 - (12% * (70% * 3,000,000)) (Firm High's use of debt is 70%)

= 500,000 - (12%*2,100,000)

= 248,000

Earnings = PBT - tax = 248,000 - (35% * 248,000)

= 161,200

Given 90,000 shares, the EPS = 161,200/90,000 = $1.79.

Computation of Firm Low's EPS

Profit before Tax (PBT) = EBIT - Interest on debt

= 500,000 - (10% * (20% * 3,000,000)) (Firm Low's use of debt is 20%)

= 500,000 - (10%*600,000)

= 440,000

Earnings = PBT - tax = 440,000 - (35% * 440,000)

= 286,000

Given 240,000 shares, the EPS = 286,000/240,000 = $1.19.

Therefore, EPSHigh - EPSLow = 1.79 - 1.19 = $0.60.

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3 years ago

Why is the study of managerial finance important to your professional life regardless of the specific area of responsibility you

Sever21 [200]

Answer:

Explanation:

The essence of understanding managerial finance is important because it helps in cash management, this experience helps an organization, group or even individuals to allocate resource better, justify every financial requirement for any project or job and be able to funds it's financial responsibility. This comes with planning and implementing strategies.

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3 years ago

Read 2 more answers

Scampini Technologies is expected to generate $200 million in free cash flow next year, and FCF is expected to grow at a constan

natulia [17]

Answer:

The stock's value per share is $90.09.

Explanation:

In order to estimate the value of the share, first we have to estimate the value of the company at year 0 (today). We start from the FCF, that is equal to 200,000,000 (year 1). The formula of the company's value is $FCF * (1+g)/(WACC-g)$ , where g is the constant rate of grow (5%). So, the value of the company at year 1 is $200,000,000 * (1,05)/(0,11-0,05) = 3,500,000,000$ .