<span>Lack of good education in maths is a global pandemic, and rather than coding, I think we should be teaching school children and encouraging adult learners to train themselves in basic maths and showing the benefits to people so that they have a reason to take initiative here. I think this will contribute to better decision making and ultimately a better world.</span>
Answer:
c. $386.7 million
Explanation:
The enterprise value of the firm is the present value of its future free cash flows discounted at the weighted average cost of capital as well as the present value of free cash flow terminal value beyond year 3 as shown thus:
Year 1 FCF=$10 million
Year 2 FCF=$20 million
Year 3 FCF=$30 million
terminal value=Year 3 FCF*(1+terminal growth rate)/(WACC-terminal growth rate)
terminal growth rate=2%
WACC=9%
terminal value=$30*(1+2%)/(9%-2%)
terminal value=$437.14 million( $437.1 million is wrong as it is the terminal value, not the enterprise value)
present value of FCF=FCF/(1+WACC)^n
n is the year in which the free cash flow is expected, it is 1 for year 1 FCF, 2 for year 2 FCF , 3 for year 3 FCF as well as the terminal (the terminal value is also stated in year 3 terms)
enterprise value=$10/(1+9%)^1+$20/(1+9%)^2+$30/(1+9%)^3+$437.14 /(1+9%)^3
enterprise value= $386.7 milion
Answer:
Percentage change in quantity= 2.3%
Explanation:
Price elasticity is define as a measure of responsiveness of quantity demanded to changes in price.
When price is highly elastic there is large change in quantity demanded to small change in price. While when it is inelastic quantity demanded is less responsive to changes in price.
Mathematically
Price elasticity= percentage change in quantity / percentage change in price.
2.3= percentage change in quantity/0.01
Percentage change in quantity= 2.3* 0.01
Percentage change in quantity= 0.023= 2.3%
<u>Explanation:</u>
Given
Consumption = (10 x 30) = 300
Investment = (100 x 2) = 200
Government Spending = (500 x 1) =500
13. Total GDP for this economy = Consumption + Investment+ Government spending
=(10 x 30) + (100 x 2) + (500 x 1)
=$1000
14. Consumption % on GDP
= Consumption/ Total GDP x 100
=(300/1000) x 100
= 30%
15. Investment % in GDP
= Investment / Total GDP x 100
=(200/ 1000) x 100
=20%
16. Government spending % on GDP
=Government spending/ Total GDP x 100
=(500/1000) x 100
=50%
Answer:
D. they can save money this way.