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Elina [12.6K]
4 years ago
11

Suppose Boyson Corporation’s projected free cash flow for next year is $100,000, and FCF is expected to grow at a constant rate

of 6.5%. If the company’s weighted average cost of capital is 11.5% and the required return on equity is 14.5%, what is the firm’s total corporate value?
Business
1 answer:
fenix001 [56]4 years ago
5 0

Answer:

$2,000,000

Explanation:

The computation of the firm total corporate value is shown below:

The firm corporate value is

= Free cash flow for next year ÷ (weighted average cost of capital - growth rate)

= $100,000 ÷ (11.5% - 6.5%)

= $2,000,000

We simply applied the above formula to find out the firm corporate value

And ignored the required rate on equity i.e 14.5%

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Can plagiarism be unintentional? Should the consequences be the same?
DochEvi [55]

Answer:

yes it can be and no they shouldn't be.

Explanation:

yes, even though unlikely to happen it is possible to do something (write,play or invent etc) and not be aware that that already exsists. And it is not your fault for making something that you did not know is already made.

3 0
3 years ago
To fund your dream around-the-world vacation, you plan to save $1,175 per year for the next 15 years starting one year from now.
kobusy [5.1K]

Answer:

I will save $26,390

Explanation:

A fix Payment for a specified period of time is called annuity. The Compounding of these payment on a specified rate is known as Future value of annuity. In this question $1,175 per year payment for 15 years at 5.53% interest rate is also an annuity.

We can calculate the amount of saving by calculating the future value of the given annuity.

Formula for Future value of annuity  is as follow

Future value of annuity = FV = P x ( [ 1 + r ]^n - 1 ) / r

Where

P = Annual payment = $1,175

r = rate of return = 5.53%

n = number of years = 15 years

Placing Value in the formula

Future value of annuity = FV = 1,175 x ( [ 1 + 5.53% ]^15 - 1 ) / 5.53%

Future value of annuity = FV = 1,175 x ( [ 1 + 0.0553 ]^15 - 1 ) / 0.0553

Future value of annuity = FV = $26,390

6 0
4 years ago
Obtain the relevant authoritative literature on recognition of contingent losses. What is the specific eight-digit Codification
podryga [215]

Answer:

310-10-50-8

Codification citation for trade receivables that do not accrue interent until a specified period has elapsed, non accrual status would be the point when accrual is suspended after the receivable becomes past due.

Explanation:

Accounting standards codification is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied to non governmental entities.

6 0
4 years ago
Businesses can be classified into the following forms: sole proprietorship, partnership, corporation, limited liability company
algol [13]

Answer:

b) Income is allocated on a pro rata basis

Explanation:

A partnership is an agreement between two or more people to oversee a business and share in the profit and losses made by the business.

In a partnership when income comes in it is shared.on a pro rata basis.

This means income is given based on the level of ownership of the business.

For example a partner that has 60% ownership of the partnership is expected to collect 60% of the business income.

Pro rata is also called proportional rate.

8 0
3 years ago
YOUR TASK. Revise the following sentences to unbury the verbs.
stellarik [79]

The revision of the sentences to unbury the verbs is:

  • 41. After the investigation, the fire department reached the conclusion that the blaze was set intentionally.
  • 42. Our committee promised to give consideration to your proposal at its next meeting.
  • 43. When used properly, zero-based budgeting can bring about a reduction in overall costs.
  • 44. Did our department make an application for increased budget support?
  • 45. The budget committee has not taken action on any projects yet.
  • 46. Homeowners must make a determination of the total value of their furnishings.

<h3>What is a Verb?</h3>

This is an action or doing word which is used to show action and is one of the important parts of speech in the English language.

When a verb is buried, then the function in the sentence is unclear and obscure, but by placing them properly and changing the form in which they appear in the sentence.

Read more about verbs here:
brainly.com/question/14584990

4 0
2 years ago
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