In business, the four basic forms of competition are

Justus Motor Co.has a WACC of 11.50%, and its value of operations is $25.00 million. Justus's free cash flow is expected to grow

lakkis [162]

Answer:

$FCF_0=1.05$

So option (b) is correct option

Explanation:

We have given value of operation PV = $25.00

WACC, that is $Ke$ = 11.50% = 0.1150

It is grow at a constant rat of 7 % so g = 0.07

We have to find the value of $FCF_0$

We know that value of operation is given by

$PV=\frac{FCF_0(1+g)}{Ke-g}$

So $25=\frac{FCF_0(1+0.07)}{0.1150-0.07}$

$FCF_0=1.05$

So option (b) is correct option

4 0

3 years ago

The formal or informal societal rules that specify or prohibit certain behaviors in specific situations are called ______.

babymother [125]

Answer:

social norms

Explanation:

Social norms can be seen as mutual depictions of appropriate social behavior as well as internal opinions of specific group behavior. Norms can be seen as cultural ideas (including principles, traditions, and rituals) that serve a basic understanding of what others practice and believe that they ought to be doing.

Social norms are, if seen as a societal viewpoint, informal interpretations which regulate the actions of people in a society. In response to religious or community expectations, behavioral economics acknowledges smaller group structures (such as a team or perhaps a department) can also accept norms independently.

6 0

3 years ago

Suppose Stuart Company has the following results related to cash flows for 2021: Net Income of $5,600,000 Increase in Accounts P

seropon [69]

1. The statement of cash flows of Stuart Company for the year ended December 31, 2021, is as follows:

Stuart Company

<h3>Statement of Cash Flows</h3>

For the year ended December 31, 2021, $'000

Net Income $5,600

Depreciation 1,900

Other Adjustments (800)

Increase in Accounts Payable 600

Decrease in Accounts Receivable 900

Increase in Inventory (200)

Net Cash Flow from Operating Activities $8,000

2. The Net Cash Flow from Operating Activities for Stuart Company for 2021 is <u>$8 million</u>.

<h3>What are operating activities' cash flows?</h3>

The cash flows from the operating activities section affect revenues and expenses.

They indicate the cash flows that originate from the regular business activities of the entity.

To prepare the statement of cash flows, the first items to adjust the net income are the non-cash expenses and losses and revenues and gains.

Learn more about the operating activities section at brainly.com/question/25530656

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8 0

2 years ago

What rapidly changing factor has led to the social age in business?

Nina [5.8K]

Answer:

Communication technology

Explanation:

6 0

3 years ago

HI Corporation is considering the purchase of a machine that promises to reduce operating costs by the same amount for every yea

Alexus [3.1K]

Answer:

Annual savings = 61,746.

Explanation:

The Net Present Value (NPV) is the difference between the present value (PV) of cash outflows and PV of cash inflow

At the internal rate of return the PC of annual cash savings will be equal to the investment cost

Initial cost = 211980

PV = annual cash savings = A× (1- (1+r)^(-n)/ r

A=? r-internal rate of return, 14%, n-number of years- 5

211980 = A (1- (1.14)^(-5)/ 0.14

211,980 = A× 3.433080969

A= 211,980/3.43308

A= 61746.28619

Annual savings = 61,746.

5 0

3 years ago