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WARRIOR [948]
3 years ago
10

Mooradian Corporation’s free cash flow during the just-ended year (t = 0) was $250 million, and its FCF is expected to grow at a

constant rate of 5.0% in the future. Assume the firm has zero non-operating assets. If the weighted average cost of capital is 12.5%, what is the firm’s total corporate value, in millions?
Business
1 answer:
LenaWriter [7]3 years ago
7 0

Answer:

the firm’s total corporate value is 3.500.000.000

Explanation:

Consider the following formula to calculate the corporate value of the firm

Firm Total Corporate Value =Free cash flow (T1) / Ke - G

= 250.000.000 ( 1+0.05)/12.5%-5%

= 3.500.000.000

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DiKsa [7]
This is an example of.... Libtards... I mean the Democratic system that’s running&ruining this country.
7 0
2 years ago
Martinez Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $166,900 to $19
kolezko [41]

Answer:

<u>monthly flexible budget for each $11,100 increment </u>

Sales                                                               $11,100

Less Sales Commissions ( $11,100 × 6%)       ($666)

Net Sales                                                       $10,434

advertising ( $11,100 × 5%)                              ($555)

traveling ( $11,100 × 4%)                                  ($444)

delivery ( $11,100 × 2%)                                   ($222)

Net Income                                                     $9,213

Explanation:

Consider Only the incremental costs and revenues.Fixed costs are not relevant for the $11,100 increment

<u />

4 0
3 years ago
A running shoe company wants to reach "avid marathon runners" instead of just "sports fans". which targeting method should this
fiasKO [112]
The correct answer:
Custom affinity audiences

Source, explanation and more answers: https://goo.gl/LkZN6c
3 0
3 years ago
Could I Industries just paid a dividend of $1.62 per share. The dividends are expected to grow at a rate of 20 percent for the n
nata0808 [166]

Answer:

Explanation:

Using the dividend growth model = Do(1+g)/Ke-g

Do=1.62$

G=4%

Ke=12%

Do(1+g)/Ke-g  =  2.0736(1+4%)/12%-4%

                      =   1.6848

/8%

                      =   53.916

                 Year Year Year Year Year  

                    0             1             2           3            4  

                          20%  20%  20% 20%  

Dividend             1        1.2      1.44  1.728 2.0736  

Ifninty dividend                                               55.91*  

Total Cashflows 1    1.2     1.44         1.728 55.98  

Pres.Val @12%    1     1.07142 1.14795  1.22995   35.583

     

Value of stock 40.030    

4 0
3 years ago
In a decision to either sell as is or process a product further, __________costs are considered irrelevant and _____________cost
MrRa [10]

In a decision to either sell as is or process a product further, joint costs are considered irrelevant and process further costs are considered relevant.

The decision of whether to sell the product right away or wait to sell it in order to earn more money. Although we think that growing the business's income is great, we also need to make sure that the costs associated with the growth will be met. We must contrast the profit margin between selling now and selling later because additional processes will demand more resources and expenses.

Additionally, we need to make an effort to maximise the return on our investment. Additional processes might need more money spent on equipment. These factors require us to apply the sell or process further technique in order to choose the best course of action.

Typically, this scenario occurs in a joint product where one or more outputs can be generated and produce additional revenue. The joint products are produced at the same cost up until the point where they are divided and further sold or processed. Although the products can be sold at the split point, there are instances when continuing developing them is more profitable.

Learn more about joint cost here brainly.com/question/14988439

#SPJ4

6 0
1 year ago
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