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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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. Terry purchases an annuity with payments made at the beginning of each month for 36 payments. The monthly payments are a const
lara31 [8.8K]

Answer:

The present value of the annuity is $ 825.02  

Explanation:

The present value of the annuity is the today's worth of the thirty annuity payments.

Each of the annuity payment is multiplied by its discount factor,for instance the discount factor for the first payment is computed thus

=$15*(1/(1+6%/12)^1=$14.93

The 6% interest rate is divided by 12 months to show a monthly rate of return find attached.

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4 0
3 years ago
Juanita is having her yard landscaped. She obtained an estimate from two landscaping companies. Company A gave an estimate of $2
mafiozo [28]

Answer:

8 hours is required for both companies to cost the same

Explanation:

given data

company A materials and equipment = $220

company A labor = $45 per hour

company B materials and equipment = $300

company B labor = $35 per hour

to find out

how many hours of labor required

solution

total cost of company A =  220 + 45 h

total cost of company B =  300 + 35 h

so we can say

total cost of company A = total cost of company B

220 + 45 h  = 300 + 35 h

h = 8

so 8 hours is required for both companies to cost the same

5 0
3 years ago
Which example involves a real-world restriction that can affect your decision-making process?
ankoles [38]

Answer: Your answer would most likely be C. Physical attributes.

Explanation:

3 0
3 years ago
Given one or more hypothetical assumptions, a responsible party may prepare, to the best of his knowledge and belief, an entity'
Sergeeva-Olga [200]

Answer: Financial projections

Explanation:

 The financial projection is the term which is used for forecasting the various types of future based expenses and also the revenue of an organization. It also helps in preparing the financial statement by using their best knowledge, result and also manage the cash flow system.  

It also helps in developing the various types of short term financial based projection that for the purpose of internal marketing information.

The importance of the financial projection is that it helps in preparing the basic finance base statement by predicting the firm's outcome. Therefore, Financial projections is the correct answer.

 

5 0
4 years ago
On May 2, 1990 SAFE BANK discussed the possibility of loaning Tyler Corp. $500,000. Tyler signed a security agreement and UCC-1
Yakvenalex [24]

Answer:A. Safe Bank

B. No

Explanation:

Safe bank did the filling before One Time credit, moreover One time is expected to do a check on Tyler credits background before giving out the loan.

The taken over of the collateral will not change the answer, because it's the filling that is more important than taken possession of the collateral.

4 0
4 years ago
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