Answer:
Enterprise value = $20.988 million
Explanation:
We calculate the FCFF first using the given information.
FCFF from EBIT = EBIT * ( 1 - Tax rate) + Depreciation - Working Capital increase - Capital expenditure
Thus, the FCFF for Victoria Enterprises is:
- FCFF = 1.3 million * (1 - 0.35) + 0.309 million - 0.053 million - 0.309 million
Using the FCFF we calculate the firm value using constant growth model as,
Value = 0.792 * ( 1 + 0.06) / 0.10 - 0.06 = $20.988 million
A bakery can sell 800 cupcakes at $3 each, or 1,000 cupcakes at $2.50 each. Option (c) $0.50 is the correct answer.
To compute the marginal revenue, you have to divide the change in its total revenue by the change in its total output quantity.
Marginal revenue is equal to the selling price of an item that was sold.
The marginal revenue associated with cupcakes of 800 from 1,000.
Marginal Revenue= Change in Revenue/ Change in Quantity
= (Current Revenue - Initial Revenue) / (Current Product Quantity - Initial Product Quantity)
= (1000*2.50) - (800*3) / 1000 - 800
= 2500 - 2400 / 200
= 100/200
= ½
=0.5
= $0.50
Marginal Revenue
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C sounds most correct.
please vote my answer branliest! Thanks.
