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
Suppose that a monopoly computer chip maker increases production from 10 microchips to 11 microchips. If the market price declin
Sergeu [11.5K]

Answer:

$19

Explanation:

Marginal revenue is the change in revenue when production increases by one unit

Marginal revenue = change in total revenue / change in quantity produced

total revenue 1 = $30 x 10 = $300

Total revenue 2 = $29 x 11 = $319

change in total revenue = $319 - $3000 = $19

Change in quantity produced = 11 - 10 = 1

Marginal revenue = $19 / 1 = 19

5 0
3 years ago
Quill Manufacturing Business makes two models of marking pens. The requirements for each lot of pens in the three manufacturing
Juliette [100K]

Answer:

Optimal production quantity for the Tiptop model pen is 7.5 lot  

Explanation:

Say, X and Y is the is the fliptop and tiptop quantity respectively, then

Profit = 1000*(X + Y)

Objective function: Maximize 1000*(X+Y) subject to;

Eq:1 3X+4Y=< 36

Eq:2 5X+4Y=< 40

Eq:3 5X+2Y=< 30  

Using Excel Solver, we get:  

Optimal production quantity for the Tiptop model pen is 7.5 lot  

7 0
3 years ago
An ad agency creates two ads for a particular car. One stresses the car's safety and gas mileage; the other simply shows how fun
Kay [80]

The first ad relies on the Central route to persuasion; the second, on the Peripheral route .

<u>Explanation: </u>

Advertising is a payment of the messages sent by those who send them to notify or affect the recipients, as defined by the British Advertising Association.

The central route to convincing takes place when the substance of a message persuades a person. The peripheral way to persuade takes place when a person is convinced by something other than the content of the post.

The peripheral route often occurs if a listener is convinced that there are many points in a text— but there is no ability or incentive to care about each one individually. In other terms, secondary data such as the identity of the source (credibility) or many claims in a single message is shortcut.

3 0
3 years ago
Most teens do not have full-time jobs, and their income is often limited. Setting
soldi70 [24.7K]
Yessssssssssssssssssssss
8 0
3 years ago
The current market value of the assets of ABCD is $86.28 million. The call option value on the firm's assets is $53.09 million.
Temka [501]

Answer: $33.19 million

Explanation:

From the question, we are informed that the current market value of the assets of ABCD is $86.28 million and that the call option value on the firm's assets is $53.09 million.

The market value of the firm's debt will be the difference between the market value of assets and the call option value of the firm's assets. This will be:

= $86.28m - $53.09m

= $33.19 million

6 0
3 years ago
Other questions:
  • Suppose you own a travel agency in a large city. you have many corporate clients, but growth has slowed somewhat. some long-term
    9·1 answer
  • Assume the MPC is 0.8. Assuming only the multiplier effect matters, a decrease in government purchases of $100 billion will shif
    11·1 answer
  • Williams &amp; Co. is a medium-sized CPA firm enrolled in the Private Companies Practice Section (PCPS). The firm is to have a p
    12·1 answer
  • Bundling is expected to provide greater profits when the two bundled goods are: i. substitutes. ii. goods that have high fixed c
    7·1 answer
  • Stuck on this one is financial literacy please help
    7·1 answer
  • All of a country’s citizens pay the ___A__an income tax that is 7% of their annual earnings. This tax is___B____ tax
    14·2 answers
  • Explain why the scenario below fails to address the protection that patent laws offer inventors.
    9·1 answer
  • State with brief reason whether the following statements are true, false, or uncertain:a. In the presence of heteroscedasticity
    5·1 answer
  • Josh is an HR Manager at RoxCom LLC. He is responsible for conducting performance appraisals for all entry-level employees in hi
    15·1 answer
  • What is the primary cause of failure for strategic initiatives?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!