Atchley corporation’s last free cash flow was $1.55 million. the free cash flow growth rate is expected to be constant at 1.5% for 2 years, after which free cash flows are expected to grow at a rate of 8.0% forever. the firm's weighted average cost of capital (wacc) is 12.0%. The best estimate of the intrinsic stock price is $25.05.
What is free cash flows?
The amount by which a company's operating cash flow exceeds its demands for working capital and expenditures for fixed assets is known in corporate finance as free cash flow or free cash flow to firm.
Therefore,
The best estimate of the intrinsic stock price is $25.05.
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Answer:
The correct answer is letter "D": Interest in solving a problem.
Explanation:
Situational leadership is exercised by managers when they need to adapt their method of working to the current situation their companies are facing. The key point is to get to the solution of the problem. Thus, the leader does not wait for the subordinates to adapt to his or her leadership style but is the leader who proactively takes a step towards a change.
The stock price is mathematically given as
P=$57.64
<h3>What is the
stock price?</h3>
Generally, the equation for is Value after year mathematically given as

V= $1454.25
Hence, the current value is mathematically given as
I=Discounting factor equal to the future cash flows multiplied by their present value

I=$1063.508769
current value for ordinary stock
I'=$1037.508769million
In conclusion, the stock price is
P=(1037.508769/18)
P=$57.64
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Answer:
a. Aggregate demand will shift to the left and unemployment rate will rise
Explanation:
Aggregate demand (AD) is the sum of consumer spending, government spending, investment, and net exports. The AD curve assumes that money supply is fixed. Increased money supply causes reduction in interest rates and further spending and therefore an increase in AD. <u>On the other hand, decreased money supply causes increase in interest rates and therefore a decrease in Aggregate Demand</u>
<u>Since the FED is buying Bonds it is reducing money supply and hence aggregate demand will fall causing the curve to shift to the left.</u>
Secondly inflation and unemployment has an inverse relationship. More money in the economy is inflation and unemployment level will be low because there will be an increase in wages <u>BUT when the FED reduces money supply by buying bonds, as a means of countering inflation, then unemployment will rise.</u>
Answer:
Yes, he can buy stock in Apple.
Explanation: