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Pie
3 years ago
6

Barnette Inc.'s free cash flows are expected to be unstable during the next few years while the company undergoes restructuring.

However, FCF is expected to be $50 million in Year 5, i.e., FCF at t = 5 equals $50 million, and the FCF growth rate is expected to be constant at 6% beyond that point. If the weighted average cost of capital is 12%, what is the horizon value (in millions) at t = 5?a. $719b. $757c. $797d. $839e. $883
Business
1 answer:
kykrilka [37]3 years ago
6 0

Answer:

Horizon value = $883

so correct option is e. $883

Explanation:

given data

FCF is expected = $50 million

time = 5 year

CF growth rate = 6% = 0.06

average cost of capital = 12% = 0.12

to find out

the horizon value

solution

we know that FCF at year 6 is here

FCF at year 6  = principal ( 1 + rate )

FCF at year 6 = 50 × (1 + 6%)

FCF at year 6  = 53 million

and

Horizon value will be here

Horizon value =  \frac{FCF at year 6}{required rate- growth rate}  

Horizon value =  \frac{53}{0.12-0.06}

Horizon value = 883.33

Horizon value = $883

so correct option is e. $883

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klasskru [66]

Answer:

Everyone has seen organizations and agencies make a case for their cause on the television, newspaper and radio. We have all heard stories about how a media consultant has helped improve a political candidate's image by cleverly manipulating the press. There are many ways you can use the media to the benefit of your cause. This section introduces you to working with the media.

WHAT ARE THE MEDIA AND MEDIA ADVOCACY?

Media, which is the plural form of 'medium', are the forms of communication – television and radio; newspapers, magazines, and written materials (or "print media"), and, more often now, the Internet – used to spread or transmit information from a source (which can be a person, an organization, a business, an institution, a government agency, a policy maker, or another media outlet) to the general public.

Advocacy means openly supporting a certain viewpoint or group of people. If you are an advocate for a specific cause, you work to persuade local, state, or federal governments or other entities to grant specific rights, make policy changes, provide money, or create new laws for the good of your cause. For example, if you have a child with a disability, you might advocate for the increased availability of medical services for handicapped children in your city.

Media advocacy is the use of any form of media to help promote an organization's or a company's objectives or goals, which come from the group's vision and mission. For example, suppose you’re a media advocate for a non-profit agency working to reduce gang violence in your neighborhood. You would try to present neighborhood issues related to gang violence and the changes you want to make in such a way that you:

Change the way community members look at gang violence. You might want to make it clear who it affects and why, or why kids get involved in gangs in the first place.

Create a reliable, consistent stream of publicity for your agency's issues and activities, including articles and news items about the causes and results of gang violence and about what your agency’s work entails; personal interest stories; success stories; interviews with agency staff and current and former gang members, etc..

Motivate community members and policy makers to get involved.  You probably have ideas about what could be done with public funding, or with government policies that addressed gang violence. You might have volunteer opportunities, or want to publicize a city- or state-sponsored initiative that needs public input and support.  Or perhaps you’re trying to raise money for your work. The media can help with all of these...if you know how to work with them.

Media advocates, or the people who work to attract publicity for organizations and causes, know that the media can get a public or social policy message across to the largest audience possible in the least amount of time.

As a media advocate, you can use the media to:

.

Explanation:

7 0
2 years ago
Automated retailing occurs when a consumer goes into a store to learn about different brands and products and then searches the
Grace [21]

Answer:

False

Explanation:

The scenario described above is called Showrooming, where customers just go to a store to find out about various products. They do not buy and look for alternative cheap options.

On the other hand, automated retailing occurs when products are stored in a machine that can dispense to customers.

An example is a soda vending machine.

5 0
3 years ago
An upcoming convention has secured 300 rooms at $140 per room for Friday night. The rack rate for Friday night is $250 per room
m_a_m_a [10]

Answer:

$67,000

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The total revenue will be income from the 300 rooms and that from 100 rooms

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6 0
3 years ago
A firm has a production process in which the inputs to production are perfectly substitutable in the long run. Can you tell whet
Alik [6]

Answer:

The marginal rate of technical substitution will remain constant.

Explanation:

The marginal rate of technical substitution is the rate at which an input is substituted for others. For instance, it is the rate at which the amount of labor should be decreased to increase the amount of capital.  

It represents the slope of an isoquant. When the inputs are perfectly substitutable, the isoquant is a straight line. In this situation, the marginal rate of technical substitution remains the same at all the points of the isoquants. The MRTS remains constant, though further information is needed to find out if it is high or low.

8 0
3 years ago
Complete the sentence. "When a market failure arises because marginal social benefit exceeds the ability and willingness to​ pay
pochemuha

Answer:

The correct answer is option C.

Explanation:

Market failure refers to the situation when the market is not able to efficiently allocate resources and the government has to intervene. Market failure generally happens because of the presence of externalities.  

When the marginal social cost is greater than the ability and willingness to pay, the market will fail to optimally allocate resources. The government, as a result, will intervene.  

The government will use vouchers which will cause the marginal private benefit curve to shift upwards by the size of the per-unit voucher.

6 0
2 years ago
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