Available Options Are:
A.The introduction of a new product designed to increase the firm’s cash inflows is delayed by one year. The size of the expected cash flows is not affected.
B. A firm announces to the press that its cash earnings for the coming year will be 10% higher than previously forecast.
C. A utility company acquires a natural gas exploration company. After the acquisition, 50 percent of the new company's assets are from the original utility company and 50 percent from the new exploration company.
Answer with Explanation:
The value of the firm can be calculated as under:
Value of Firm = Present Value of Net Cash Inflows
<u>Option A:</u> If the future net cash inflow is delayed then this means that the future net cash flow will lose money value which means that the present value of the net cash inflows will be reduced and this will reduce the value of the company.
<u>Option B:</u> The cash inflow has increased by 10% which means that the present value of net cash flow would be increased and thus the value of the firm will also increase.
<u>Option C:</u> Now here, if the decision is in the money which means that the decision increased the future cash inflows or created synergy value or in simple words the acquisition has generated additional profits for the company. Then this is the case of increased cash inflow generated which will increase the value of the company. And if the synergy is not created enough to compensate the additional amount paid to acquire the company then this will reduce the value of the firm as it will not generate enough profits as planned by the management.
Answer:
Strategic planning
Explanation:
Strategic planning is defined as the process by which a business outlines direction and strategy. It also involves decision on how the business will allocate it's resources to achieve its strategic goals.
Strategic plan involves formulation of mission, vision, and plan of action that will make the business achieve set goals.
In this scenario top management of Wisniewski Automobile Parts Inc. has decided that the company's objective for the next two years will be to expand the overall business internationally. This is the strategic plan of the business for the next two years
A mortgage broker acts as a middleman between you and potential lenders. The broker's job is to compare mortgage lenders on your behalf and find interest rates that fit your needs. ... Mortgage brokers are licensed
<h2>wireless payments from mobile devices.</h2>
Explanation:
Now the trend is cashless. Everybody has smart phones and people are willing to pay through various money transfer application. So according to the given situation Vice president should choose wireless payments from mobile devices.
Option A: Correct answer
Option B: Social media application can only be used to promote product and not payment so far.
Option C: Desktop will still be present since it is not only mobile apps that is existing. May are using websites for payment
Option D & E: invalid choice.
Answer:
. $11.98
Explanation:
D1 = D0(1+g)
D0 = Last dividend
r = Required rate of retrun
g = Growth rate
Stock price formula = D1/(r-g)
Stock price = D0(1+g)/(r-g)
Stock price = 1*(1+0.054) / (0.142-0.054)
Stock price = 1.054 / 0.088
Stock price = 11.97727273
Stock price = $11.98
