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tiny-mole [99]
3 years ago
6

A company forecasts growth of 6 percent for the next five years and 3 percent thereafter. Given last year's free cash flow was $

100, what is its horizon value (PV looking forward from year 4) if the company cost of capital is 8 percent?
a. $0
b. $1,672
c. $2,000
d. $2,676
Business
1 answer:
Ilya [14]3 years ago
4 0

Answer:

d. $2,676

Explanation:

The computation of the horizontal value is shown below:

FCF1 = (100 × 1.06) = 106

FCF2  = (106 × 1.06) = 112.36

FCF3 = (112.36 × 1.06) = 119.1016

FCF4  = (119.1016 × 1.06) = 126.247696

FCF5  = (126.247696 × 1.06) = 133.8225578

Now

Horizon value is

= FCF5 ÷ (Cost of capital  - Growth rate)

= 133.8225578 ÷ (0.08  - 0.03)

= $2,676

Hence, the correct option is d.

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Answer:

All of the above.

Explanation:

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In job analysis, information is made available to managers to know which employee is best suited for a particular role. It is also used to measure the capacity of employees whether they are being under or over utilized.

For effective job redistribution, job analysis is best recommended because it describes the work of current employee, working conditions and necessary educational certifications. Skills needed to perform on a role are also part of what is being considered in job analysis.

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Sales this year at Donna's Pawn Shop have been high, and based on several factors, Donna projects next year's sales to also be g
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A. Contingency planning

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48. What does management say they are doing to assure the public that the financial information is reliable
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The Cromwell Company sold equipment for $35,000. The equipment, which originally cost $120,000 and had an estimated useful life
Alla [95]

Answer:

B

Explanation:

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Useful life -10 years

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Set up and implement an online bill pay service

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