Answer:
The value of Ted stock is $2.43
Explanation:
Free cash flow From Year 1 to 5 = $200000
Cash Flow Year 6 = 200000*1.05
= $210000
This cash flow is expected to grow forever, so the terminal value can be caluclated at Year 5 of the above perptuity by Gordon Growth model
Terminal Cash FLow Value at Year 5 = 210000/(15% - 5%)
= $2100000
Present Value of above stream
= 200000*PVIFA(5 yr, 15%) + 2100000*PVIF(5 yr, 15%)
= $200000*3.352 + $2100000*0.497
= $1714100
Value of equity = Present Value of Firm - Value of debt
= $1714100 - $500000
= $1214100
Number of shares = 500000
Value per share = $1214100/500000
= $2.43
Therefore, The value of Ted stock is $2.43
Answer:
Explanation:
iate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Pretax cost of debt % If the tax rate is 40 percent, what is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Aftertax cost of debt %
Marketing tactics include different actions. One is to develop a pricing structure that encourages customers to purchase additional services they don't need.
<h3>What is marketing?
</h3>
Marketing is a concept that refers to all actions and activities related to market or commerce. Marketing has as its main purpose the analysis of the behavior of markets and consumers.
According to the above, marketing has ways to identify consumer purchasing trends and understands how buyers' thinking works. Marketing can develop strategies focused on the buyer acquiring goods or services that he does not need, one of them is prices or discounts.
Learn more about marketing in: brainly.com/question/3964664
Answer:
c. total revenue does not change.
Explanation:
A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.
Mathematically, the price elasticity of demand is given by the formula;
The demand for goods is said to be elastic, when the quantity of goods demanded by consumers with respect to change in price is very large. Thus, the more easily a consumer can switch to a substitute product in relation to change in price, the greater the elasticity of demand.
Generally, consumers would like to be buy a product as its price falls or become inexpensive.
For substitute products (goods), the price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.
If the price elasticity of demand for a product equals 1, as its price rises the total revenue does not change because the demand is unit elastic.
Answer:
41 percent
Explanation:
Given : Budgeted Sales $112,900,000
Fixed Costs $25,000,000
Variable Costs $66,611,000
Contribution margin = Net Sales - Variable costs
= $112,900,000 - $66,611,000
= $ 46,289,000
Contribution Margin Ratio =
=
= 41%
Contribution margin ratio indicates the percentage of sales remaining so as to cover a firm's fixed expenses. It also represents how much percentage of sales is required to cover the variable costs.
It is also expressed as , 100 - Variable cost ratio (in percentage)