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PSYCHO15rus [73]
3 years ago
10

Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the

next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 10%. The company's weighted average cost of capital is 18%. What is the terminal, or horizon, value of operations
Business
1 answer:
Musya8 [376]3 years ago
8 0

Answer:

Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 10%. The company's weighted average cost of capital is 18%. What is the terminal, or horizon, value of operations

 Terminal value   = $1,783,333.33

Explanation:

Terminal value = FCF3/(WACC � g2)

FCF3 = FCF2 x 1.07 = $100,000 x 1.07 ? $107,000

      = $107,000/(.13 - .07)

      Terminal value = $1,783,333.33

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If the absolute value of the price elasticity of demand is greater than 1:
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b. small percentage changes in the price will lead to much larger percentage changes in the quantity demanded.

Explanation:

Price elasticity of demand is a measure of how responsive is quantity demanded to change in price. Its formula is given by:

E_{D} = \frac{dQ}{Q}{\frac{P}{dP} =

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So when absolute value E_{D}  is greater than 1, a x percentage change in price will lead to larger than x percentage change in quantity demanded.

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Brenda is a new employee orientation trainer for a global corporation with subsidiaries all over the world. She needs to convey
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High context cultures are heavily dependent on non verbal cues and subtle situational cues while communicating with others. In such cultures a person's reputation, prestige, status in society are considerably important.

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In high context cultures are complete contrast to low context. In low context cultures, communication takes place clearly through language and rules of communication are clearly stated. While on the other hand in high context cultures, communication is subtle through body language, tone of voice, person's status etc. The use of contextual elements is more.

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When there is more choice for proceducers and consumers, that is a Command Economy.
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Mark currently has a balance of $973.70 in an account he has held for 17 years. He opened the account with an initial deposit of
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Answer:

Simple interest= $273.7

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<em>Simple interest is the interest on earned on the principal amount invested only. Kindly note that under this system, only the principal amount invested would earn interest over the course of the investment period</em>

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3 years ago
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