Answer:
The correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.
Explanation:
Free cash flow (FCF) refers to the cash that a company generates after taking into consideration cash outflows needed to support operations and maintain the capital assets of the company.
When the free cash flow of a company is expected to grow at a certain constant rate, the implication is that the the value of operations of that company one year from the current period is expected to be higher than the current price.
Based on the explanation above, the correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.
Answer:
2022 2021
EPS $1.12 $0.99
Explanation:
EPS = NET INCOME / no of shares outstanding
= $75801000/68000000 =1.12 (2022)
= $68855000/ 69820000= 0.99 (2021)
Answer:
$1,952 (Positive NPV)
Explanation:
Year Annual CF ($) PV factor at 10.30% PV of Cash Flow ($)
1 17,000 0.90662 15,413
2 17,000 0.82196 13,973
3 17,000 0.74520 12,668
4 17,000 0.67561 11,485
5 17,000 0.61252 10,413
6 17,000 0.55532 9,441
7 17,000 0.50347 8,559
TOTAL 1.73554 81,952
Net Present Value (NPV) = Present value of annual cash flows - Initial Cost
Net Present Value (NPV) = $81,952 - $80,000
Net Present Value (NPV) = $1,952 (Positive NPV)
Answer:
the answer is D hope that helps you out
