1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
2. In 2016; the cost of a market basket of goods was $2,000. In 2018, the cost of the same market basket of goods was
GREYUIT [131]

Answer:

105

Explanation:

base year = 2016

cost of market basket of goods in base year = $2,000

CPI for base year = 100

year 2018

cost of market basket of goods in 2018 = $2,100

CPI for 2018 = (cost of basket of goods in 2018 / cost of basket of goods in base year) x 100 = ($2,100 / $2,000) x 100 = 105

7 0
3 years ago
Rising unemployment levels tend to stifle demand for goods and services, which can have the effect of forcing prices downward is
Yuki888 [10]

Answer:

This is called deflation.

Explanation:

Deflation refers to the situation when there is a decline in the general price level, it causes the economy to slow down. It generally happens because of a reduction in the money supply.  

The nominal costs of goods and services, labor, capital, etc. decline. But the relative prices, generally remain the same. '

The decline in price is not good for everyone and adversely affects producers.  It is also harmful to borrowers. The decline in the price level increases the purchasing power of money.

5 0
3 years ago
In most systems for reducing pollution using an effluent fee, the government is directly involved as a fee collector. For exampl
Ganezh [65]

The Italian government can increase the efficiency of its effluent system by becoming creating a law that makes it illegal to smoke in smoke-free zones.

<h3>What is an Effluent?</h3>

This refers to wastes that are secreted or released into the air, water, or underground channels.

Examples of effluents are:

  • Liquid factory waste
  • Smoke
  • Sewage etc.

See the link below for more about the effluent system:

brainly.com/question/6277954

3 0
2 years ago
Use the​ high-low method to determine the​ hospital's cost equation using nursing hours as the cost driver. Predict total overhe
netineya [11]

Answer: Total cost  (23500 hours predicted ) = $ 484625

Explanation:

The question is incomplete the high and low methods requires us to use high and low level of activity together with the corresponding total costs at each level to determine the variable cost per unit. we will provide assumed total costs and nursing hours in order to show how high and low method is used to predict total costs for the next period.

Assume the following were total costs and corresponding nursing hours for the previous 3 months

Total cost                Hours

$560000             30000 hours

$400000             220000 hours

$225000             10000 hours

calculating Variable cost using high and low method

Variable cost per unit  = (high cost - low cost)/high hour - low hours)

Variable Cost Per unit =  (840000 - 225000)/ (30000 - 10000) = 16.75

Variable cost per unit = $ 16.75

Fixed costs = 560000 - (28000 x 16.75) =  560000 - 469000

Fixed costs =  $91000

Total cost  (23500 hours predicted ) =Total Fixed cost + Total Variable costs

Total cost  (23500 hours predicted ) = $91000 + (23500 x $16.75)

Total cost  (23500 hours predicted ) == $91000 + $393625

Total cost  (23500 hours predicted ) = $ 484625

6 0
3 years ago
Dibert Inc. has provided the following data concerning one of the products in its standard cost system.Inputs Standard Quantity
Soloha48 [4]

Answer:

Option (C) is correct.

Explanation:

Actual output = 5100 units

Actual direct labor-hours = 3,380 hours

Actual direct labor cost = $74,698

The  labor rate variance:

= (Actual Hours × Actual rate ) - ( Actual Hours × Standard Rate)

= $74,698 - ( 3,380 Hours × $20.40 Per Hour)

= $74,698 - $68,952

= $5,746 U

Since, the Actual is more than the Standard, the Variance is Unfavorable

Hence, the correct answer is $ 5,746 U

5 0
3 years ago
Other questions:
  • Exercise 24-3 Payback period computation; straight-line depreciation LO P1 A machine can be purchased for $140,000 and used for
    10·1 answer
  • Derrick invested $70,000 cash in the business. Paid $10,000 in cash for equipment. Performed services for cash amounting to $7,0
    7·1 answer
  • Anne has chosen how many bagels and how many units of cream cheese she would buy this month. She has $20 to spend on these two g
    9·1 answer
  • Explain how can you avoid conflict by adjusting your own behavior?
    13·2 answers
  • "________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially in
    11·1 answer
  • A client would like to implement a management information system that integrates all functional areas within an organization to
    13·1 answer
  • What is an insurance premium?
    9·1 answer
  • b. A second approach using the cost method of valuation will also be used to estimate value. Comparing vacant lot sales in the m
    7·1 answer
  • Classify the items as to whether or not they would be included in calculating the GDP for Canada. If a country is not specified,
    7·1 answer
  • olmstead industry has 9.40% coupon bonds outstanding with a price of $1,023.58. interest is paid semiannually and the yield to m
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!