Answer:
$29.630
Explanation:
For computation of stock price first we need to follow some steps which is shown below:-
Free cash flow = EBIT (1 - T) + Depreciation - Capital expenditure - Working capital
= $450 million + $65 million - $110 million - $30 million
= $375 million
Value of firm = Free cash flow ÷ (WACC - Growth)
= $375 million ÷ (9% - 4.5%)
= $375 million ÷ 0.045
= $8,333.33 million
Value of equity = Value of firm - Value of debt
= $8,333.33 million - $3,000 million
= $5,333.33 million
Stock price = Value of equity ÷ Outstanding shares
= $5,333.33 million ÷ 180 million
= $29.630
<span>Office of Management and Budget examines the cost of a bill. A proposed bill is given a cost forecast, and they conduct in-depth analysis while also ensuring the bill is legal. The Office of Management and Budget is also responsible for budget proposals.</span>
Answer:
The functional role being used by the government to help Ali's company is;
Redistribution of income and resources
Explanation:
The government using the three arms, namely; legislature, judiciary and executive perform various functions to ensure that it's citizens live and operate in a certain way. There are different activities that need government input o ensure efficiency. Some examples are; social activities, economic activities and political activities. Some of the major functions of government are as follows;
1. Defend and preserve the country's territorial integrity: the government has a duty to defend it's borders against external aggression.
2. Preserve order: order has to be preserved in a country to minimize chaos. The government using the constitution as a tool for preserving and maintaining order.
3. Redistribution of income and resources: the government can enforce certain policies that tend to redistribute income and resources from the wealthy to economically marginalized groups in the society. This can be done by imposing higher taxes on the rich while at the same time imposing little or no tax on the poor. The government can also provide subsidies to goods and services meant for the poor or even support small businesses by providing for cheaper loans with very low interest. An example is Ali's company that utilized a low-cost loan to boost his business. In this way the government is playing the role of redistribution of income and resources.
Answer:
The answer is: Delegated powers are those that are exclusive to national government, like printing money.
Explanation:
Delegated powers are powers given to the federal (national) government and specifically outlined by the US Constitution (Article 1, Section 8). They outline the authority and limits of the three branches of the federal government (legislative, executive and judiciary). Some examples of delegated powers are power to declare war, lay and collect taxes, print and coin money, etc.
Answer:
The answer is: Following the expected value criterion the investor should choose the sell strategy.
Explanation:
The formula we use to calculate the expected return value of the different strategies is:
ERV = ∑ (expected return x probability of occurrence)
The buy strategy has an expected return value of of 1%
ERV Buy = (10% x 33.3%) + (1% x 33.3%) + (-8% x 33.3%) = 1%
The sell strategy has an expected return value of of 1.67%
ERV Sell = (6% x 33.3%) + (2% x 33.3%) + (-3% x 33.3%) = 1.67%
