<span>This is the future value of a business. It is what the business is expected to be worth at some future date, given rates of return, interest, and other variables that could increase or decrease the company's value. This may be greater or less than the present value, depending on how the business is slated to perform over the agreed-upon time period.</span>
Answer:
Option A. 0.79
Explanation:
All we have to do is convert the levered beta into unlevered beta (100% equity financed). So we will use the following formula to find unlevered beta:
<u>Unlevered Beta = Levered Beta / (1 + (1+T)* D/E)</u>
Here,
Tax rate is 40%
Debt is 40%
Equity is 60%
And Levered Beta is 1.10
Now by putting values, we have:
Unlevered Beta = 1.10 / (1 + (1 - 0.4)* 40% / 60%)
Unlevered Beta = 1.10 / (1 + 0.6 * .667)
Unlevered Beta = 1.10 / (1 + 0.4)
Unlevered Beta = 1.10 / (1.4)
Unlevered Beta = 0.786 which after rounding off we have 0.79
There are a lot of factors that might be the cause of the change of consumer demands.
First is the Income. If the income of the person can afford the price of the product?
Second is the sudden change of price. If your product affordable? or expensive?
Third is the advertisement expendituress.
It is likely to be the same at soll and Home depot is relationship in the variability of orders received by these companies, as all four companies keep substantial inventory. If there is a strong bullwhip effect in this supply chain.
<h3 /><h3>What is bullwhip?</h3>
A bullwhip is a single-tailed whip made of braided leather or nylon that is used for working with livestock or competing.
Bullwhips are pastoral tools that have historically been used to control livestock in open country. The length, flexibility, and tapered design of a bullwhip allow it to be thrown in such a way that, near the end.
Thus, It is likely to be the same at soll and Home depot.
For more details about bullwhip, click here:
brainly.com/question/14293675
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