The statistical difference between a process operating at a 5 sigma level and a process operating at a 6 sigma level is markedly
1 answer:
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Answer:
Kedia Inc value:
$228.070.175,43
228.07 millions dollars
Explanation:
Next year Free Cash Flow: 10,000,000
Folllowing year: 25,000,000
from there, 4% increase
WACC = return = 14%
We use gordon model to know the present value of the future free cash flow growing at 4%:
FCF_0: 25,000,000
FCF_1: 25,000,000 x (1.04) = 26,000,000
future FCF: 260,000,000
This is calculated 2 years ahead, thus we need to discount this by 2 years to ge the value today.
We also need to discount the 10,000,000 million in one year and the 25,000,000 millions in two year:
<u><em>For this task we use the present value of a lump sum:</em></u>
Discounted future cash flow:
future dividends growing at 4%: 260,000,000.00
time 2.00
rate 0.14
PV 200,061,557.40
future dividends of 25,000,000
PV 19,236,688.21
future dividends of 10,000,000
PV 8,771,929.82
<u>Total value:</u> 200,061,557.4 + 19,236,688.21 + 8,771,929.82 = 228.070.175,43
Answer:
The inflation-adjusted minimum wage is at its long term historical average level.
Explanation:
Inflation is a term use to show increase in price of goods and services in the market due to increase in money supply. Different monetary policies been introduced to check inflation rate as it impact the growth rate of economy.
Inflation are adjusted to remove the affect of price inflation from the data. The formula for inflation adjustments:
Data are used only, which are currency dominated like wage rate, deposite rate, etc.
Minimum wage affect the cost of production and so the employment rate of the country.