1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
As used in the text, the term environment means all the forces influencing the life and development of the firm.
castortr0y [4]

This statement is False.

What is Lifecycle of business ?

A product's life cycle is the series of events that start when it is first created, follow it as it develops into a mature product, reaches critical mass, and then begins to decrease. A product's life cycle typically includes the following stages: product creation, market launch, growth, maturity, and decline/stability.

  • In business, a product's life cycle tracks its development, maturation, and decline.
  • The business, economic, and inventory cycles are other business cycle categories that have a life cycle-like trajectory.
  • In the early stages of product development, seed money is frequently used.
  • It is beneficial to research a competitor's product's life cycle.

To know more lifecycle of business

brainly.com/question/26300541

#SPJ4

6 0
2 years ago
Choose the answer below that is consistent with the following data: Assume that velocity is 5, the quantity of output is 1,000 i
Nonamiya [84]

Answer:

(C) This economy will suffer from an increase in the price level at some point in the future.

Explanation:

Velocity of money is defined as the rate at which money is exchanged in an economy. It calculated the number of time money exchanges hands during transactions in the economy.

For example if two individuals have $50 each (total of $100) and they used the same money to perform total transactions of $500, the velocity of money will be 500/100= 5.

The formula for velocity of money is

Velocity of money = Gross domestic product/ Money supply

GDP (monetary value of output) = output * price

GDP= 1,000* $10= $10,000

Therefore

5 = 10,000/x

Cross-multiply

x= 10,000/5= $2,000

So money needed in the economy is $2,000. But the Federal reserve has created $3,000.

We have an excess cash of 3,000-2,000= $1,000 in the economy.

Since there is too much money in the economy people will spend more and there will be increase in demand. Supply will not be able to keep up with demand resulting in scarcity and an increase in prices. Eventually inflation will occur.

7 0
4 years ago
Question 1<br> What is the most important question you should have after seeing this ad about a check cashing business?<br> Why
TEA [102]

The most important question you should have after seeing this ad about a check cashing business is"

  • Why Choose ACE to Cash Your Check?
  • No credit check necessary?
  • Can I get a written copy of all of the fees that you charge for your services?

<h3>Is a check cashing business considered a financial institution?</h3>

A money service business is one that is seen as a kind of  a financial institution that is known to be  involved with one or a lot of of the following entities such as:

  • Check casher
  • Foreign currency dealer, etc.

So, the most important question you should have after seeing this ad about a check cashing business is"

  • Why Choose ACE to Cash Your Check?
  • No credit check necessary?
  • Can I get a written copy of all of the fees that you charge for your services?

Learn more about check cashing business from

brainly.com/question/14017700

#SPJ1

6 0
2 years ago
If Chester Corp. were to buy all of it's shares outstanding at its current price, how much would it cost Chester Corp, excluding
Anvisha [2.4K]

Answer:

$82, 727, 931

Explanation:

At a present stock price of $24.40 , the cost of buying all outstanding 3,390, 489 shares is calculated by multiplying the present stock price by the total outstanding shares 24.40 * 3, 390, 489 = 82, 727, 931

6 0
3 years ago
Because of the identity equation that relates to net exports, the in U.S. net exports is matched by in U.S. net capital outflow.
Serga [27]

Answer:

Please see attachment

Explanation:

Please see attachment

8 0
3 years ago
Other questions:
  • Carradine Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours
    13·1 answer
  • Barry has a successful methamphetamine laboratory. Producing methamphetamine is illegal under federal law. Is Barry required by
    11·1 answer
  • Describe three issues that might arise from failure to comply with quality control standards.
    10·2 answers
  • As a factor of production, what is capital
    7·1 answer
  • Rug Designs Inc, a manufacturer of large area rugs, markets its products throughout the United States using a network of regiona
    13·1 answer
  • A recent study shows the benefits of using public transportation. Government officials have hired your consulting firm to increa
    14·1 answer
  • How does a high unemployment rate affect the economy
    7·1 answer
  • Suppose we changed the units of the tuition variable, so that the new tuition variable is now simply measured in dollars rather
    14·1 answer
  • A well-known fast food restaurant chain was interested in how satisfied the employees were in working for the company. They deci
    11·1 answer
  • What is another term for the part
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!