If the price of the ski trip has increased then the demand
for the ski jacket will likely decrease because of the demand curve in terms of
the ski jackets that will be shipping to the leftward as the ski trip were to
increase.
The higher the interest rate, the more money you will pay back from using their credit card.
<span>b. interest rates increaseincrease causing planned investment to decreasedecrease, which causes a decreasea decrease in aggregate demand.</span>
Answer:
Present Value= $142
Explanation:
Giving the following information:
In 40 years, you will receive a gold watch valued at $1,000. The interest rate is 5%.
<u>We have to calculate the value today of $1,000. To do this, we need to use the following formula:</u>
PV= FV/ (1+i)^n
PV= 1,000 / (1.05)^40
PV= $142
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
