Answer:
$5,697,674
Explanation:
Dividend Valuation method is used to value the operations of a company based on the dividend paid, its growth rate and rate of return/WACC. The price is calculated by calculating present value of future dividend payment.
Free cash flow is the residual cash flow of operation after paying the capital expenditure from net income of the company. It represent the cash from the operations.
Formula to calculate the value of operation
Value of Operations = FCF / ( WACC - growth rate )
Value of Operations = $490,000 / ( 13% - 4.4% )
Value of Operations = $5,697,674
Answer:
Revenue could be of amount $33,836,000
Explanation:
As the selling price is not given in the question, only the cost of the inventory is given, So,
We assume that the Sales quantity is X and the Selling Price per unit be Y
Then,
Sales = X × Y ............... Equation (1)
Less : COSG = $33,836,000 ................ Equation (2)
Net Income = 1 - 2
If the selling price is equal to the cost of the inventory which is $33,836,000. So, the only revenue which is to be added is the amount of $33,836,000.
Note: It totally depend or grounded on the Sales value.
Answer:
c. The maturity risk premium is assumed to be zero.
Explanation:
In the case when the term structure of the rate of interest would be measured via the pure expectations theory so here the maturity risk premium would be zero as under this theory it is assumed that the risk premium i.e. of the long term would be equivalent to the zero
Therefore the option c is correct
And, the rest of the options seems wrong
If Nike and Adidas merge, it would be a horizontal merger
<h3>What is a merger?</h3>
A merger can be described as the absorption of one firm by another firm. When a merger occurs, one of the firms involved in the merger ceases to exist. Only one firm would exist.
<h3>What is an horizontal merger?</h3>
An horizontal merger occurs between firms in the same industry. The firms are usually competitors.
Reasons for an horizontal merger include:
- To increase the market power of a firm
- To achieve economies of scale.
To learn more about mergers, please check: brainly.com/question/1086715
Answer:
Option (A) is correct.
Explanation:
Money multiplier refers to the reciprocal of required reserve ratio.
The formula for determining money multiplier is as follows:
= 1 ÷ Reserve requirement ratio
If the households are desired to hold more currency in hand then as result the there will be leakage in the form of households holding cash with themselves.
Hence, this will lead to decrease the money multiplier because of higher reserve requirement ratio for the banks.
