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bulgar [2K]
3 years ago
12

ANSWER ASAPP. Changes in monetary policy occur when the Federal Reserve 1.adjusts business laws to affect the money supply. 2.ch

anges taxation levels to affect the economy. 3.changes spending levels to affect the economy. 4.adjusts interest rates to affect the money supply.
Business
1 answer:
finlep [7]3 years ago
4 0

Answer:

D

Explanation:

In the economic system, the monetary policies of the government are implemented through the banks.

Adjusting the rate of interest can only be done by the Federal Reserve.

All other options are under government fiscal policy.

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Given the following:A firms projected free cash flows of2021 $20 million2022 $30 million2023 $50 millionAfter 2023, the growth r
kow [346]

Answer:

a) $1,300 million

b) $1,115.91 million

c) $112.39

Explanation:

To find horizon value, value of operations, and the stock price we need to go through calculations using appropriate formulas.

DATA

Free CashFlow, 2021 = $20 million

Free CashFlow,, 2022 = $30 million

Free CashFlow,, 2023 = $50 million

Growth Rate = 4%

Cost of Capital = 8%

Value of Long-term Debt = 12 million

Value of marketable securities = $20 million

outstanding shares = 10 million

Working

Free CashFlow,, 2024 = Free CashFlow,, 2023 * (1 + Growth Rate)

Free CashFlow,, 2024 = $50 million * 1.04

Free CashFlow,, 2024 = $52 million

Horizon Value

Horizon Value = Free CashFlow, 2024 / (Cost of Capital - Growth Rate)

Horizon Value = $52 million / (0.08 - 0.04)

Horizon Value = $52 million / 0.04

Horizon Value = $1,300 million

Value of operation

Value of Operations = $20 million / 1.08 + $30 million / 1.08^2 + $50 million / 1.08^3 + $1,300 million / 1.08^3

Value of Operations = $1,115.91 million

Stock price

To find the price per share we need to find the value of equity first

Value of Equity = Value of Operations - Value of Long-term Debt + Value of Marketable Securities

Value of Equity = $1,115.91 million - $12.00 million + $20.00 million

Value of Equity = $1,123.91 million

Price per share = Value of Equity / Number of Shares

Price per share = $1,123.91 million / 10 million

Price per share = $112.39

5 0
3 years ago
an investor in able inc. would like to understand able's availability of resources to pay its short-term cash requirements. this
defon

A type of analysis to understand Able's availability of resources to pay its short-term cash requirements is known as a liquidity measure.

<h3>What is liquidity?</h3>

Liquidity can be defined as the rate at which an asset or resource such as physical equipment, can be used to purchase any goods or services. This ultimately implies that, liquidity is a characteristics (quality) of money as a medium of exchange around the world.

In Financial accounting, liquidity is simply a measure of the availability of resources to pay current, liabilities, short-term cash requirements, or operating expenses of an entrepreneur or business firm.

Therefore, an analysis of the availability of resources is typically aimed at a company's funding requirements and ability to meet its financial obligations.

Read more on liquidity here: brainly.com/question/14014912

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4 0
2 years ago
How does the marketing department help determine if a product is cost effective
natka813 [3]

IT¨ el A :) ok bye y  love

6 0
3 years ago
Read 2 more answers
Should the firm instead shut down in the short run? in the short run, the firm should?
Gnesinka [82]

In the near run, the firm should keep producing because the price is higher than the average variable cost. In economics, the variable cost per unit is known as the average variable cost.  Variable cost is divided by  the output to derive  the average variable cost.

In the short term, the firm use the average variable cost to determine whether to stop production. The variable cost per unit of total product is known as the average variable cost (AVC) (TP). Divide variable cost at a given total product level by total product to compute AVC. This computation is used to calculate the cost per unit of output.

To learn more about firm, click here.

brainly.com/question/14693807

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6 0
2 years ago
Kevin is looking at two brands of washing machines. Between water and electricity, a Brand C washer uses about $0.65 per load, a
Lady_Fox [76]

Based on the utility costs of Brand C and D, there will be a difference in utility costs at the end of the year of $22.80.

<h3>How much more would Brand C cost in utility costs?</h3>

First find the utility cost for Brand C in a year:

= 0.65 x 5 x 12 months

= $39

Utility cost of Brand D:

= 0.27 x 5 x 12 months

= $16.20

The difference would be:

= 39 - 16.20

= $22.80

Find out more utility bill calculations at brainly.com/question/14277272.

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3 0
2 years ago
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