Answer:
If Pinnacle was an all equity firm its WACC would be the same as the cost of equity capital which is 15%.Also if it was an all equity firm all the free cash flow would be available to the shareholders as there was no debt and no money needed to be given to the debtors
The formula to find the value of a firm using the FCF is
FCF*(1+G)/WACC-G
14*(1+0.5)/0.15-0.5
=14.7/0.10=147
The value of Pinnacle as an all equity firm would be $147 million
Explanation:
Answer:
[D]
Explanation:
Based on the information provided within the question it can be said that the Clients being accredited or qualified would not affect registration requirements or exemptions. This is due to Investment Advisors Act of 1940 and Investment Advisor would have to register if they are giving advice about securities, being compensation, and being the business of giving advice, regardless if the client are accredited or qualified.
Answer:
Explanation:
a. Parties who legally own the company
The kind of corporation that is owned by the shareholders is a stock insurer. While when policy holders elect board of directors then that is call a mutual insurer. This board of director enjoys control over the management control of the corporation.
b. Right to assess policyholders additional premiums
An asses sable policy can not be issued by the stock insurers, however policy of such kind can be issued by the mutual insurer. For mutual insurer, this policy depends on what kind of insurer is in place.
c. Right of policyholders to elect the board of directors
For stock insurer, its is the stockholders who elect the board of directors. While for mutual insurer, its the owners who elect the board of directors who have an effective control over the management.
Answer:
b. decreased.
Explanation:
The price of silver increased by $1. The overall price increased by 5% = 1.05 × $30 = $31.50.
Therefore, the price of silver should be $31.50 but it is $31. This indicates that the real price of silver fell.
I hope my answer helps you
Answer and Explanation:
The computation of the overhead cost assigned is shown below:
Particulars Product K52W Product X94T
Setting up cost $4,667.52 $3,784.16
($70.72 × 66) ($70.72 × 53)
Order processing cost $1,277.88 $861.18
($27.78 × 46) ($27.78 × 31)
Assembling cost $5,674.20 $2,075.22
($12.81 × 419) ($
12.81 × 162
Total Overhead cost $11,619.60 $6,721.18
