Answer:
B. Reduce pollution as long as the additional benefits are greater than the additional costs.
Explanation:
Answer:
The correct answer is $2,444.6 billion
Explanation:
FCFE= FCF+ Increase in debt- Interest (1-t)
= $205+$25-$22( 1-0.35)
=$215.7
Market Value = [(215.7)1.02)]/ [11%-2%]
=$2,444.6
Assuming a single period growth rate of 2%,
the forecasted FCFE =$215.7(1+0.02)
=$220.01 billion
Although this is not available in the options provided ,$220.01 billion is the correct answer.
Answer:
option b is correct
current stock price is $42.64
Explanation:
given data
dividend = $1.75
growth rate = 25% for 2 year
growth rate 1 = 6%
required return 2 = 12%
to find out
current stock price
solution
we will find here first stock price after 2 year that is
stock price = cash flow at 2 year end × ( 1+rate ) / ( rate 2 - rate1 ) ..................1
so here cash flow at 2 year end = 1.75×1.25 = 2.1875
2.1875 × 1.25 = 2.734
stock price = 2.734 × ( 1+ 0.06 ) / ( 0.12 - 0.06 )
stock price = 48.30
so stock price at 0.12 return
= cash flow at 1 year / ( 1+ rate 2 ) + cash flow at 2 year / ( 1+ rate 2 )² + stock price / ( 1+ rate 2 )²
= 2.1875 / ( 1+ 0.12 ) + 2.734 / ( 1+ 0.12 )² + 48.30 / ( 1+ 0.12 )²
= $42.64
so option b is correct
current stock price is $42.64
AnswerEnterprise Fund Dr. 1,300,000
Pension Fund CR. 1,300,000
Narration recognition of outstanding pension fund.
Note This will throw the Enterprise fund into a deficit of $520,000
To provide for the deficit
Income Dr. 520,000
Enterprise fund CR 520,000
Narration. Recognition of pension not covered by asset.
Answer:
$40,500
Explanation:
A Companies Contribution Margin is a product's price minus all associated variable costs, this final value gives the products incremental profit earned for each unit sold. Therefore in this scenario, the Contribution Margin for the company is as follows
(4,500 * $20) - (4,500 * $11)
$90,000 - $49,500
$40,500
Therefore the final Contribution Margin for the company is $40,500 dollars.
