Answer: $840 million
Explanation:
Given that,
Free cash flow = $40 million in Year 3
at t = 3,
FCF to grow at a constant rate = 5%
Weighted average cost of capital (W) = 10%
Cost of equity (C) = 15%
Horizon Value at t = 3,
= Free Cash flow ×
= 40 ×
= 40 ×
= $840 million
Answer:
C. a debit to Held-to-Maturity Debt investments for $26,000
Explanation:
In as much Amex corporation is intending to place on hold the bonds till they mature; total investments must be recorded i.e price of bonds including commission for brokerage, as held to securities until they mature.
Classification of investments in securities are ; Held-to-maturity, meaning that the company is not planning to sell the investments hence hold on to them till they mature. They are however classified as non current assets. Investment in securities could also be made available for sale or held for further trading.
The journal entry is therefore;
Dr Held-to-Maturity debts investments $26,000
Cr Cash $26,000
These purchasing strategies are crucial for the development and expansion of the firm since they explicitly state the goals and objectives in the appropriate qualities.
It also measures it using the outcomes that have been achieved, taking into account both internal and external elements that have an impact on the company.
The following are some components of the Purchase strategy:
- Clear Objective
- Evaluateable Goals
- Development Plan
- Evaluative Plans
- Clear Objective
To learn more about strategic plans from given link
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An 'easy money policy is a monetary policy that increases the money supply usually by lowering interest rates. It occurs when a country's central bank decides to allow new cash flows into the banking system.