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wariber [46]
3 years ago
11

Year 1 2 3 4 Free Cash Flow ​$12 million ​$18 million ​$22 million ​$26 million Conundrum Mining is expected to generate the abo

ve free cash flows over the next four​ years, after which they are expected to grow at a rate of 3​% per year. If the weighted average cost of capital is 13​% and Conundrum has cash of​ $80 million, debt of​ $60 million, and 30 million shares​ outstanding, what is​ Conundrums expected terminal enterprise​ value
Business
1 answer:
makkiz [27]3 years ago
4 0

Answer:

$463.67 million

Explanation:

The computation of the expected terminal enterprise value is shown below:

Terminal Enterprise value is

= Free cash flow ×  (1 + growth rate)  ÷ (Weighted average cost of capital - growth rate)

= $26 million × (1.07) ÷ (0.13 - 0.07 )

= $27.82 million ÷ 0.06

= $463.67 million

We simply applied the above formula to determine the expected terminal value

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Prefrontal cortex is the decision-making and planning center of consciousness.

<h3>What is prefrontal cortex?</h3>

The prefrontal cortex is said to be the seat of planning.

The cortex is a part of the brain which is the control of all mind activity. The prefrontal is located at the front of the brain and it helps planning of activities.

Therefore, prefrontal cortex is the decision-making and planning center of consciousness.

Learn more on planning below,

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3 0
2 years ago
In capitalism what does competition do for consumers?
Aleks [24]

D. It keeps prices fair for consumers

3 0
3 years ago
Read 2 more answers
An insurer hires an advertising agency to create an advertisement for a health insurance policy. The public complains that the w
OLga [1]

Answer:

The insurer shall be held liable

Explanation:

For any published or displayed content which relates to the insurer or it's products, the insurer shall be made liable for any inappropriate content.

In cases wherein the advertisement function has been assigned to an insurance agency, even in such a scenarios, the sole responsibility rests with the insurer and it's their primary responsibility to check upon the content advertised.

Thus, if any inappropriate content or misleading claims are made, it shall be assumed those have been issued by consent of the insurer and the insurer cannot escape this liability.

5 0
3 years ago
Regardless of which method you choose, why is it important to pay at least the monthly minimum payment on every debt? Your credi
Diano4ka-milaya [45]

Answer:

You will have to pay fees and your credit score will decrease.

Explanation:

If you do not make at lest the minimum payments for all your outstanding debts, the lender will probably charge you late payment fees (which can be very expensive), and your credit score will certainly decrease. This will end up increasing your future credit costs and hurt your ability to access them.

7 0
3 years ago
Echo Sound Company just began business and made the following four inventory purchases in June: June 1 150 units $ 1,040 June 10
postnew [5]

Answer:

FiFo method as prices are continuously increasing

Explanation:

Date                Units               Cost                    Per Unit Cost

June 1             150 units            $ 1,040               6.93

June 10           200 units              1,560               7.8

June 15          200 units               1,680               8.4

June 28          150 units               1,320               8.8

                                                  $5,600

As the unit price is increasing the method which yields the highest gross profit would be FIFO.But in some cases the income is overstated as the beginning inventory is too old to account for . Similarly Lifo gives lower net income but that too is not very beneficial when the inventory is almost obsolete.

The average method gives a measure in between FIFO and LIFO.

7 0
3 years ago
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