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svet-max [94.6K]
3 years ago
11

Tropetech Inc.’s FCFs are expected to grow at a constant rate of 4.62% per year in the future. The market value of Tropetech Inc

.’s outstanding debt is $4,894 million, and its preferred stocks’ value is $2,719 million. Tropetech Inc. has 225 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 13.86%.Find the total firm value ?
Business
1 answer:
weeeeeb [17]3 years ago
6 0

Answer:

The total firm value is $10,877 million

Explanation:

Value of Firm = Expected FCF/(WACC - Growth Rate)

                       = $1,005 million/(0.1386 - 0.0462)

                       = $1,005 million / 0.0924

                       = $10,877 million

Therefore, The total firm value is $10,877 million

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A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $30, $38, and $90. The nu
galina1969 [7]

Answer:

The one-day rate of return on the index is 3.43%

Explanation:

Given that the shares were priced at;

$30    for    710,000 shares

$38    for    610,000 shares

$90    for    310,000 shares

Changes in prices of shares

$34-$30=4

$36-$38= -2

$92-$90=2

Return=change in price of shares/initial price of shares *100

The return will be;

4/30*100 =13.33

-2/38*100= -5.26

2/90*100 = 2.22

Total = 13.33+2.22 - 5.26 =10.29

10.29/3 =3.43

3 0
3 years ago
. For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual in
Zielflug [23.3K]

Answer:

Inventory cost will be $3

So option (b) is correct option

Explanation:

We have given that carrying and setup cost is $600

So carrying and setup cost = $600

And EOQ = 200 units

We have to find the inventory carrying cost per year

We know that inventory carrying cost is given by

inventory carrying cost =\frac{carrying\ and\ setup\ cost}{EOQ}=\frac{600}{200}=$3

So option (b) will be correct option

4 0
3 years ago
The Carter Corporation makes products A and B in a joint process from a single input, R. During a typical production run, 50,000
klemol [59]

Answer: $54,000 per production run

Explanation:

As we are dealing with the decision of whether or not to process the good further, the irrelevant cost would be the cost of producing product B from input R.

This is because this cost has already been incurred to produce product B and so is a sunk cost. Sunk costs are irrelevant to the decision to process further.

30,000 units of B were made from 90,000 units R so the cost of B is:

= 30,000 / 50,000 * 90,000

= $54,000

<em />

<em>The options here are probably for a variant of this question.</em>

8 0
3 years ago
Assessment
faust18 [17]

Answer:

false cause people they alr on the stock market

6 0
3 years ago
Federal antitrust statutes are complex, but the basic goal is straightforward: to prevent a major industry from being so dominat
kicyunya [14]

Answer:

Since it is the supreme Court that has given this decision, there is nothing much an individual congressman can do alone or even a president.

However, since anti trust laws do not cover those which are not trade or Commerce in nature, a congressman can propose to inact new laws that cover Sports related economic activities. Or they can pass a new law to include the sports related financials in the anti trust laws. But this could change the structure and the purpose of anti trust laws.

Explanation:

6 0
3 years ago
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