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sammy [17]
4 years ago
6

Which of the following is the appropriate way to calculate the price of a share of a given company using the free cash flow valu

ation​ model?
A. P0​ = ​(V0​ + Cash0 - Debt0​) ​/ (Shares Outstanding0​)
B. P0​ = Div1​/(rE - g​)
C. P0​ = PV​(Future Free Cash Flow of​ Firm) /​ (Shares Outstanding0​)
D. P0​ = ​[Div1 ​/ ​(rE - g​)] ​/ (Shares Outstanding0​)
Business
1 answer:
vfiekz [6]4 years ago
4 0

Answer: Under the free cash flow valuation​ model, free cash flows in future are projected.  These are discounted by the adjusted capital cost i.e. (debt and equity).

Therefore, the appropriate way to calculate the price of a share of a given company using the free cash flow valuation​ model is given as :

P_{0} = \frac{V_{0}+Cash_{0}-Debt{0}}{(Outstanding Share)_{0}}

<u><em>Here, the correct option is (a). i.e. P_{0} = \frac{V_{0}+Cash_{0}-Debt{0}}{(Outstanding Share)_{0}}</em></u>

<u><em></em></u>

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You are sales director for a company that sells manufactured products to customers who use the products as components of product
Anna [14]

Answer: Business market

                       

Explanation: In simple words, business market refers to the markets in which business to business transactions takes place. In such markets one business sells their product to customers who are not the final consumers of its utility but use that product to create additional utility.

  In the given case, the company is selling its product to a company who  use that product as component of some other product. Hence the given case depicts business market.

3 0
3 years ago
if an internal audit reveals issues, it is time to do some interviews and document reviews. how many people should be involved i
r-ruslan [8.4K]

'If an internal audit reveals issues, it is time to do some interviews and document reviews. 2 the attorney many people should be involved in the interview process of an employee.

An employee is a person who is paid to work for an individual or company. A worker does not have to work full time to be considered an employee. You just need to be paid for your work by your employer (the person or company that pays your salary).

An employer is an individual, firm, or organization that employs people and pays them wages for their work. A person who works and gets paid is called an employee. Employers provide employment.

An example of an employee is a store clerk. Employees are required to perform specific tasks such as: B. An employee is considered an employee if they wear a name tag and greet customers with certain expressions.

Learn more about employee brainly.com/question/27953070

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6 0
1 year ago
when perfectly competitive firm X sells three units of product Z, its marginal revenue is $4.67. when it sells one hundred units
Ghella [55]

Answer:

B) $4.67

Explanation:

By definition marginal revenue is the revenue generated by the sale of one more unit of product Z.

Marginal revenue = unit price

Since firm X participates in a perfectly competitive market, it is a price taker, and since the marginal revenue is constant, we can assume that this is the equilibrium price of product Z.  

3 0
3 years ago
The journal entry to record the sale of treasury stock might include all of the following except for:
Ghella [55]

Answer:

b. a debit to Paid-In Capital from Sale of Treasury Stock.

Explanation:

Treasury stock is the stock of equity purchased by the company itself, from open market. Basically it has a debit balance. And it is shown as a negative value from common equity in the balance sheet.

Now when there is sale of such treasury stock, this treasury stock will be credited, also in next entry common stock will be credited as it will increase automatically therefore in no circumstances Paid in capital will be debited from sale of treasury Stock.

Final Answer

b. a debit to Paid-In Capital from Sale of Treasury Stock.

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3 years ago
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Tasya [4]

The cost at which a company records purchases of machinery and equipment should include all the under listed:

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<h3>What is acquisition cost?</h3>

Acquisition cost refers to all the cost associated with the purchase of an asset.  When calculating how a company records purchases of machinery and equipment, it should be the all inclusive cost of the equipment.

The cost acquisition cost should include :

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