Answer:
Horizon value = $883
so correct option is e. $883
Explanation:
given data
FCF is expected = $50 million
time = 5 year
CF growth rate = 6% = 0.06
average cost of capital = 12% = 0.12
to find out
the horizon value
solution
we know that FCF at year 6 is here
FCF at year 6 = principal ( 1 + rate )
FCF at year 6 = 50 × (1 + 6%)
FCF at year 6 = 53 million
and
Horizon value will be here
Horizon value = 
Horizon value = 
Horizon value = 883.33
Horizon value = $883
so correct option is e. $883
Answer:
The answer is A, household income, wealth and product price.
Explanation:
This simply indicates that to be able to identify the combination of goods and services that are affordable from those that are not, the current household income should be considered, the wealth of the household which refers to the current amount of money in the household account and the price of the product.
Answer: Group A
Explanation:
Price Elasticity of demand refers to the sensitivity of quantity demanded given a change in price. In other words, how much will quantity demanded change if price changes. Higher elastcities mean that when prices change, their quantity demanded changes more. For instance, an elasticity of demand of 2 means that when prices rise by 2%, demand will decrease by 4%.
The group that will be paying the most therefore will have to be the group that is least sensitive to paying that high price. That would be Group A. As they are not very sensitive to price changes with an elasticity of 0.2, the Monopoly can increase their price to a higher point than others knowing that they won't demand less goods.
Answer:
D. $ 10,300
Choice D is correct: Net income = $ 10,300
Explanation:
Cash Received = $ 16000
Less Rent Paid= ( $ 2000)
Add income = $ 3000
Less Salaries for the month of March = ($ 6200)
Less utilities paid ($ <u>500)</u>
<u>Net income=</u> $ 10,300
Treatments.
Net income is found by deducting expenses from revenues earned
$ 100,000 is the retained earnings so it is not accounted for net income.
Equipment is an asset so it is not accounted for net income.
Cash received is the revenue so it is accounted.
Rent is an expense account so it is subtracted.
Income for service $ 3000 provided is also taken into account on matching principle basis.
Advance received will be adjusted when the services will be rendered on matching principle.
