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Dmitriy789 [7]
2 years ago
8

Brian Vargo, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is: a. not

counted as part of the labor force. b. considered frictionally unemployed. c. an underemployed worker. d. counted as part of the labor force. e. considered as productively active.
Business
1 answer:
malfutka [58]2 years ago
8 0
<span>a. not counted as part of the labor force</span>
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Given the following:A firms projected free cash flows of2021 $20 million2022 $30 million2023 $50 millionAfter 2023, the growth r
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Answer:

a) $1,300 million

b) $1,115.91 million

c) $112.39

Explanation:

To find horizon value, value of operations, and the stock price we need to go through calculations using appropriate formulas.

DATA

Free CashFlow, 2021 = $20 million

Free CashFlow,, 2022 = $30 million

Free CashFlow,, 2023 = $50 million

Growth Rate = 4%

Cost of Capital = 8%

Value of Long-term Debt = 12 million

Value of marketable securities = $20 million

outstanding shares = 10 million

Working

Free CashFlow,, 2024 = Free CashFlow,, 2023 * (1 + Growth Rate)

Free CashFlow,, 2024 = $50 million * 1.04

Free CashFlow,, 2024 = $52 million

Horizon Value

Horizon Value = Free CashFlow, 2024 / (Cost of Capital - Growth Rate)

Horizon Value = $52 million / (0.08 - 0.04)

Horizon Value = $52 million / 0.04

Horizon Value = $1,300 million

Value of operation

Value of Operations = $20 million / 1.08 + $30 million / 1.08^2 + $50 million / 1.08^3 + $1,300 million / 1.08^3

Value of Operations = $1,115.91 million

Stock price

To find the price per share we need to find the value of equity first

Value of Equity = Value of Operations - Value of Long-term Debt + Value of Marketable Securities

Value of Equity = $1,115.91 million - $12.00 million + $20.00 million

Value of Equity = $1,123.91 million

Price per share = Value of Equity / Number of Shares

Price per share = $1,123.91 million / 10 million

Price per share = $112.39

5 0
2 years ago
1) Suppose at market opening on 10/24/2019, the market expects the bond that matures in 2034 ("the longer-term bond") to provide
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Answer:

Check the explanation

Explanation:

What would be the market prices <em><u>(which is the current or present price at which services or goods can be purchased/procured or sold. In the financial markets, the market price can adjust so rapidly which is mostly how people change their bid or the way they offer prices, or as buyers hit the offer or as sellers hit the bid.) </u></em>for both bond on the day can be seen in the attached images below:

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3 years ago
Agreement and disagreement among economists
vredina [299]

Answer:

  1. Differences in values
  2. C. Tariffs and import quotas generally reduce economic welfare.

Explanation:

Yvette and Sean most likely have a difference in values because they believe that one thing is better for the economy than the other. This means that when it comes down to the economy, they value a certain approach over other approaches.

Economist don't usually find common ground on many things but there are some things where they have a general consensus and one of them is that tariffs and import quotas are bad for the economy. They believe that people stand more to gain from free trade than restricted trade.

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Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and de
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Answer:

A). Decrease the money supply so interest rates rise.

Explanation:

This could be explained simply because change in money supply results in changes in price levels and/or a change in supply of goods and services. An increase in money supply results in a decrease in the value of money because an increase in money supply causes a rise in inflation. As inflation rises, the purchasing power, or the value of money, decreases.

A change in interest rates is one way to make that correspondence happen. A fall in interest rates increases the amount of money people wish to hold, while a rise in interest rates decreases that amount. A change in prices is another way to make the money supply equal the amount demanded.

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3 years ago
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Powder room mess. for $300,000, willis agrees to build a new home for robert, who is very picky. willis builds the home to rober
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These types of damages are called “Compensatory damages”.

<span>Willis breached the contract but the breach was not material. So as a way to compensate for the damages Willis have made, he offered instead to pay $300 to put the correct faucets and linoleum in the powder room.</span>

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3 years ago
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