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:
d.transferred to Cost of Goods Sold
Explanation:
Given that
Balance in the factory overhead is small
So, the balance is normally transferred to the cost of good sold as the factory overhead consists of the indirect cost which are required to producing a product while the cost of goods sold is the total cost which is incurred to manufacture the cost. It involves direct cost as well as the indirect cost
Answer:
sustainable growth rate for Crash Davis Driving School: 9.044%
Explanation:
0.133 x (1-0.32) = 0.09044
The firm will grow as the amount that isn't paid as dividends increase the equity through retained earnings. Because both, common sense the acounting equaition if the earnings are retained they will be investment and assets will increase:
Assuming the company thakes no debt for the period then:
Assets = liab + equity
Assets = 0 + increase in RE
Assets = + increase in RE
Thus, this is the rate at which assets grows without taking new debt
Answer:
Confirmation bias
Explanation:
Confirmation bias occurs from the direct influence of desire on beliefs. When people would like a certain idea or concept to be true, they end up believing it to be true. They are motivated by wishful thinking. This error leads the individual to stop gathering information when the evidence gathered so far confirms the views or prejudices one would like to be true. Once we have formed a view, we embrace information that confirms that view while ignoring, or rejecting, information that casts doubt on it. Confirmation bias suggests that we don’t perceive circumstances objectively. A confirmation bias is a type of cognitive bias that involves favoring information that confirms your previously existing beliefs or biases.
For example, imagine that a person holds a belief that left-handed people are more creative than right-handed people. Whenever this person encounters a person that is both left-handed and creative, they place greater importance on this "evidence" that supports what they already believe. This individual might even seek "proof" that further backs up this belief while discounting examples that don't support the idea.
Answer:
The correct answer that a dividend is a better choice is . a. Regarding taxes, which would benefit Aleshia the most? The $114,000 dividend because after taxes she would have $ from the dividend and $ 86,640 from the bonus.
Explanation:
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business and pay a proportion of the profit as a dividend to shareholders.
A tax (from the Latin taxo) is a compulsory financial charge or some other type of levy imposed upon a taxpayer (an individual or legal entity) by a governmental organization in order to fund various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law.
