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ExtremeBDS [4]
3 years ago
8

Analysts project the following cash flows for Hopkin’s Corporation during the next three years: Year 1: – $27 million (this is n

egative $27 million), Year 2: $42 million, Year 3: $52 million. Free cash flow is then expected to grow at a constant 6% rate. Hopkin’s weighted average cost of capital is WACC = 11%. 12) (8 pts) What is Hopkin’s terminal, or horizon, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.
Business
1 answer:
Maksim231197 [3]3 years ago
3 0

Answer:

The terminal value is $1102.4 million

Explanation:

The terminal value is the value of future cash flows discounted back to the period from where the cash flow growth becomes constant. The calculation of terminal value is important in Discounted cash flow models because terminal value contains a large percentage of the company's value. The formula to calculate the terminal value of this company will be,

Terminal value = FCF3 * (1+g)  /  (WACC - g)

Terminal Value = 52 * (1+0.06)  /  (0.11 - 0.06)

Terminal Value = $1102.4 million

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The correct answer is letter "B": Establish a sense of urgency by creating a compelling reason for why change is needed.

Explanation:

American educator John Kotter (born in 1947) in his book "<em>Leading Change</em>" (2011) proposed an eight-step method to generate change within an organization. The first of them is to Create Urgency, where potential risks are identified, and scenarios that illustrate what might happen in the future are created. Also, honest discussions are carried out to offer diverse and compelling reasons of why the change is needed.

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An economy in which more effort is devoted to the production of services than to the production of goods is called the:
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During June, Buttrey Corporation incurred $73,000 of direct labor costs and $13,000 of indirect labor costs. The journal entry t
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Answer:

                                                            Dr.             Cr.

Work in process                             $73,000

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Account Payable                                              $86,000

Explanation:

The Direct cost are those which are directly attributable to the product or service under consideration. Indirect cost are those which cannot be directly assigned to product or service cost. All the direct cost is added to the work in process account and indirect cost are included in the manufacturing overhead account.

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Ralph is a former student in AECN 141. The first exam he scored a 60%, and did not study. The second exam he scored a 75% and st
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The marginal productivity of the first hour of studying is 15%.

<h3><u>What is Marginal Productivity?</u></h3>
  • The additional output, return, or profit generated per unit as a result of benefits from production inputs is referred to as marginal productivity or marginal product.
  • Raw materials and labor are examples of inputs. According to the rule of decreasing marginal returns, the marginal productivity will normally decrease as production rises when a production element is improved.
  • This indicates that for every extra unit of output produced, the cost advantage often decreases.
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Formula for Marginal Productivity = (Qn – Qn-1) / (Ln – Ln-1)

The total product value is divided by the difference in labor to determine the marginal product of labor.

Know more about Marginal Productivity with the help of the given link:

brainly.com/question/13623353

#SPJ4

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One major advantage of limited liability is that it:________.
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For a limited liability company, it should be noted that the liabilities of the members in the company for the debts that are incurred are limited only to the investment of the members. Personal assets are not affected if the company first into debt.

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