Answer:
Value of a stock = $1.89
Explanation:
The value of a firm is the present value of the by the free cashflow discounted at the required rate of return
Value of the firm = FCF/(WACC- g)
FCF- free cash flow
WACC- Cost of capital = 13%
g- growth rate= 5%
= 10,000/(0.13-0.05)= 125,000,000
Value of a stock = Value of firm/No of shares
= $125,000,000/66,000,000 units
= $1.89
Answer:
I'm here to help
Explanation: Hey buddy, I can't help you if you don't put in a question- sorry-
Answer:
SmartSC
The economic order quantity (EOQ) for Supplier A is:
= c) 253
Explanation:
a) Data and Calculations:
Supplier A Supplier B
Price per unit $30 $6
Annual unit demand 7,200 3,000
Annual holding cost $9 $1.80 ($6 * 30%)
Ordering cost $40
Economic order quantity for Supplier A = square root of (2 * D * S)/H
where D = Annual demand in units
S = Ordering cost per order
H = Holding cost per unit
= square root of (2 * 7,200 * $40)/$9
= square root of 64,000
= 253
Answer:
Disability Buy-Sell; The premiums are not deductible, but the benefits are received income tax-free.
Explanation:
Answer:
$30,000 decrease in the net income of Fletcher Inc.
Explanation:
Product G contribution margin = Sales - Variable cost = $210,000 - $180,000 = $30,000.
Since the discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H, that means the fixed cost of $50,000 on product G will continue to be incurred while Product G contribution margin of $30,000 which is currently being contributed to the net income will be lost.
Therefore, the amount of change in net income for the current year that will result from the discontinuance of Product G is a $30,000 decrease in the net income of Fletcher Inc.