Answer:
a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.
b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.
d. The formula to calculate present value of expected free cash flows is:
PVn=CFn(1+in)n
The formula for the present value of expected free cash flows when discounted at WACC is:
PV=∑Nn=0CFn(1+in)n
Explanation:
a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.
b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.
d. The formula to calculate present value of expected free cash flows is:
PVn=CFn(1+in)n
The formula for the present value of expected free cash flows when discounted at WACC is:
PV=∑Nn=0CFn(1+in)n
Answer:please refer to the explanation section
Explanation:
direct labor hours = 39000 hours
Finished Goods = 13000 units
direct labour hours per unit = 3 hours
Direct Labor cost per hour = $12
Direct Labor Cost = 13000 units x 3 hours x $12 = $ 468000.
William corporation will pay $480000 (40000 x $12) as per the contract agreement with labour union but Direct Labor cost to be capitalized on Cost of Finished Goods is $ 468000. The cost of $ 12000 should be treated as an expense
Answer:
It is a result of adverse selection
Explanation:
The economic problem in this story is adverse selection. As in this the person who take the insurance drive uselessly and carelessly . In Coverall, Inc., an insurance company's case insurance company increases premium amount in order to cover this type of customer. It is a result of adverse selection.
The Transcontinental Railroad affected companies that made products because c<span>ompanies could ship goods cheaply over long distances.</span>
