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horrorfan [7]
3 years ago
15

Gonzales Corporation generated free cash flow of $88 million this year. For the next two years,the companyʹs free cash flow is e

xpected to grow at a rate of 10%. After that time, the companyʹsfree cash flow is expected to level off to the industry long-term growth rate of 4% per year. Ifthe weighted average cost of capital is 12% and Gonzales Corporation has cash of $100 million,debt of $300 million, and 100 million shares outstanding, what is Gonzales Corporationʹsexpected terminal enterprise value in year 2?
A) $1384.24
B) $1245.82
C) $1107.39
D) $968.97
Business
1 answer:
vodka [1.7K]3 years ago
6 0

Answer:

A) $1384.24

Explanation:

Terminal Value = Free Cash Flow (FCF) of last forecast *(1+ perpetual growth rate)/(discount rate – perpetual growth rate)

FCF of last forecast = $88*(1+10%)^2 = $106.48

Gonzales Corporationʹs expected terminal enterprise value in year 2 = $106.48 * (1+4%)/(12%-4%) = $1382.24

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X Company is concerned that it does not have enough employees to ensure adequate segregation of duties in its revenue cycle. Whi
MAVERICK [17]

Answer:

The correct answer is C)Opening the mail and recording entries in the sales journal.

Explanation:

It is the correct answer because both activities can be done sitting on the desk, using the same computer. All the other answers refer to activity pairs that would require physical activity, and this would reduce efficiency. For example, making journal records and delivering inventory are extremely disjointed activities, it is like being an accountant and a delivery person at the same job.

5 0
3 years ago
Cadilengy, a nonprofit organization, is conducting a food fair in the month of October. The proceeds of this fair will go to cha
Viktor [21]

Answer: (A) Event marketing    

Explanation:

 The event marketing is one of the business promotional strategy in which the various types of brands, products and the services are get promoted in the market so that the customers or users are get aware about the specific brand and the new products.  

 According to the given question, the Event marketing is one of the type of strategy that best illustrating the given scenario about a non profit organization is conduct a food fair and the collected fair is basically contributed for the charity purpose.

On the other hand, along with charity the various types of restaurants distribute their pamphlets and promote their restaurants business in the event. Therefore, Option (A) is correct answer.    

8 0
3 years ago
If the interest rate rises in the United States relative to other​ nations, then in the foreign exchange market the demand for d
34kurt

Answer:

B. ​increases; decreases

Explanation:

Foreign exchange market can be defined as type of market in which the currency of one country is converted into that of another country.

For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.

Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

An interest rate can be defined as an amount of money that is charged as a percentage of the total amount borrowed from an individual or a financial institution.

Generally, if the interest rate rises in the United States relative to other​ nations, then in the foreign exchange market the demand for dollars​ increases and the supply of dollars​ decreases because of the high value of the dollar compared to the other currency.

4 0
2 years ago
Read 2 more answers
Which scenario most strongly indicates that workplace rules will have to be changed to resolve the conflict
8090 [49]

The scenario that show workplace rules need to be changed is Workers voting to disband their union because they feel that it has not adequately represent their interest.

<h3>What is a workplace?</h3>

A workplace is a designated location or place where employees of and employer work or a place where workers perform their designated duties.

Therefore, The scenario that indicate workplace rules need to be changed to resolve conflict is Workers voting to disband their union because they feel that it has not adequately represent their interest.

The question is incomplete are the options were not given.

Here are the options from another website.

  • A lack of deadlines for research staff, preventing other staff members from getting information in a timely fashion
  • Line workers and executives not eating together at lunch, except for onescheduled day each month
  • An employee threatening to quit, because he did not get a raise that he hadcounted on and believed he deserved
  • Workers voting to disband their union because they feel that it has not adequately represent their interest.

Learn more about workplace below.

brainly.com/question/1249474

5 0
2 years ago
Western Wear Clothing issues 3,000 shares of its $0.01 par value common stock to provide funds for further expansion. Assuming t
Komok [63]

Answer:

The journal entry for the issuance of the common stock is shown below:

Explanation:

Cash A/c.............................................Dr    $33,000

     Common Stock A/c........................Cr   $30

     Paid in Capital A/c...........................Cr   $32,970

Working Notes:

Cash = Number of shares × Issue Price

= 3,000 × $11

= $33,000

Common Stock = Number of Shares × Par Value

= 3,000 ×  $0.01

= $30

Paid in Capital = Cash - Common stock

= $33,000 - 30

= $32,970

3 0
3 years ago
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