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3 years ago

Why might a person decide to take advantage of a non-installment credit offer?

1 answer:

8 0

A person would take advantage of a non installment credit offer if there was no interest charged on on the loan. Many of these offers will not charge interest on the loans if the loan is paid off in a short amount of time. Usually within 3 to six months of the time the loan is started. These offers are usually for appliances and furniture. You can always ask the store you are visiting if they have these offers available. If you don't pay the loan off within the amount of time, you are then charged the interest and have a longer amount of time to pay the loan off.

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Given the following:A firms projected free cash flows of2021 $20 million2022 $30 million2023 $50 millionAfter 2023, the growth r

kow [346]

Answer:

a) $1,300 million

b) $1,115.91 million

c) $112.39

Explanation:

To find horizon value, value of operations, and the stock price we need to go through calculations using appropriate formulas.

DATA

Free CashFlow, 2021 = $20 million

Free CashFlow,, 2022 = $30 million

Free CashFlow,, 2023 = $50 million

Growth Rate = 4%

Cost of Capital = 8%

Value of Long-term Debt = 12 million

Value of marketable securities = $20 million

outstanding shares = 10 million

Working

Free CashFlow,, 2024 = Free CashFlow,, 2023 * (1 + Growth Rate)

Free CashFlow,, 2024 = $50 million * 1.04

Free CashFlow,, 2024 = $52 million

Horizon Value

Horizon Value = Free CashFlow, 2024 / (Cost of Capital - Growth Rate)

Horizon Value = $52 million / (0.08 - 0.04)

Horizon Value = $52 million / 0.04

Horizon Value = $1,300 million

Value of operation

Value of Operations = $20 million / 1.08 + $30 million / 1.08^2 + $50 million / 1.08^3 + $1,300 million / 1.08^3

Value of Operations = $1,115.91 million

Stock price

To find the price per share we need to find the value of equity first

Value of Equity = Value of Operations - Value of Long-term Debt + Value of Marketable Securities

Value of Equity = $1,115.91 million - $12.00 million + $20.00 million

Value of Equity = $1,123.91 million

Price per share = Value of Equity / Number of Shares

Price per share = $1,123.91 million / 10 million

Price per share = $112.39

5 0

2 years ago

The exchange of a good or service is

Mademuasel [1]

Marketing processes the quesion is not complite

4 0

3 years ago

Joe Pie is considering investing in a Heaven Piza franchise that will require an initial outlay of $100,000. He conducted market

avanturin [10]

Answer:

i agree with joe pie what he said

6 0

2 years ago

Bill received an unordered calendar from the local charity so he must pay money to the charity.

torisob [31]

Answer:

false, they sent the calendar hoping he would make a donation, but he does not have to give any money

Explanation:

they sent the calendar hoping he would make a donation, but he does not have to give any money

8 0

3 years ago

Callaway golf company conducted a one-time survey of golfers and asked them about their attitudes, preferences, and intentions r

ch4aika [34]

Callaway golf company conducted a one-time survey of golfers and asked them about their attitudes, preferences, and intentions regarding buying custom clubs. this is an example of a(n) "cross-sectional study".

<h3>What is cross-sectional study?</h3>

A cross-sectional study examines data from a group of people at one point in time. Participants throughout this type of research are chosen based on certain variables of interest.

Some key features of cross-sectional study are-

Cross-sectional studies are common in psychology, but they are also employed in many other fields, such as social science and innovation.
Cross-sectional studies is observational in nature but are classified as descriptive research rather than causal or relational research, which means they cannot be used to pinpoint the source about something, such as a sickness.
Researchers collect information from a population, yet they do not change variables.
This strategy is frequently used to draw conclusions about potential links or to collect early data to enable additional research and experimentation.

To know more about the cross-sectional study, here

brainly.com/question/14557972

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6 0

1 year ago