1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Helga [31]
3 years ago
15

Judd Corporation has a weighted average cost of capital of 10.25%, and its value of operations is $57.50 million. Free cash flow

is expected to grow at a constant rate of 6.00% per year. What is the expected year-end free cash flow, FCF1 in millions?
Business
1 answer:
earnstyle [38]3 years ago
6 0

Answer:

The expected year-end free cash flow is $2.44 million

Explanation:

The formula to compute free cash flow is shown below:

Value of operations = (free cash flow) ÷ (weighted average cost of capital - growth rate)

$57.50 million = free cash flow ÷ (10.25% - 6.00%)

$57.50 million = free cash flow ÷ 4.25%

So, free cash flow equal to

=  $2.44 million

The growth rate should always be deducted from the weighted average cost of capital in computing the year ending free cash flow.

You might be interested in
The most highly visible component of the marketing mix is?
san4es73 [151]
<span>c. promotion
</span>d. prepare the report.
<span>a. that attempts to compare the responses of the same or similar people under different circumstances. (not 100% sure it could be c)</span>
7 0
3 years ago
The following static budget is provided: Units 27,000 Units Sales $ 270,000 Less variable costs: Manufacturing costs $ 94,500 Se
valentinak56 [21]

Answer:

$62,750

Explanation:

The computation of budgeted net income is shown below:-

Budgeted income = (Contribution Margin × Units produced and sold ÷ Units) - Manufacturing costs - Selling and administrative costs

= ($118,800 × 25,000 ÷ 27,000) - $29,700 - $17,550

= $110,000 - $29,700 - $17,550

= $62,750

Therefore for computing the Budgeted income we simply applied the above formula.

4 0
3 years ago
Read 2 more answers
The Making Ethical Decisions box "Good Finance or Bad Medicine" has an important message for managers who make financial decisio
Nataly [62]

Answer:

A. Managers must balance good economic decisions with socially forward thinking.

Explanation:

Good Finance or bad medicine refers that if you are aware of finance or you have studied the finance subject so you are capable of making the financial decisions which give you the better return at less risk in near future and if you are not aware of finance than it would lead to the worst situation

Therefore the first option depicts the given message i.e making a better balance in the economic decisions with the help of forward-thinking i.e. to be social

8 0
3 years ago
PLEASE HELP ASAP!!! Which statement describes a strategy for improving ones organization and time management at work ?
notsponge [240]
The answer is the 3rd one.

My explanation would be that the other reasons listed are for personal use such as friends birthdays, music, and a new clock, but the third answer is listing things appropriate for a business.

Hope I helped !
7 0
2 years ago
Triple Creek Hardware Store currently uses a periodic inventory system. Kevin Carlton, the owner, is considering the purchase of
marin [14]

Answer:

Will switching to a perpetual inventory system strengthen Triple Creek Hardware’s control over inventory items?

  • Yes, a perpetual inventory system provides updated information about inventory levels and costs. Since it is updated immediately, many of the company's problems could be solved, e.g. you can place an alert for minimum inventory levels on certain products and you can determine if the stocks of low sellers are too high.

Will switching to a perpetual inventory system eliminate the need for a physical inventory count?

  • It will not completely eliminate the need to carry out a physical inventory, but it should reduce it substantially. Also, you can carry out a random physical inventory for certain products only. If the physical count shows that there are problems with the registered inventory, then you can carry out a complete physical count.

3 0
3 years ago
Read 2 more answers
Other questions:
  • The two most common forms of primary research are​ ________.
    6·1 answer
  • Both examples below illustrate which element of the assertive message format? example 1: "yesterday, kristopher promised me he w
    10·1 answer
  • During April, the production department of a process manufacturing system completed a number of units of a product and transferr
    15·1 answer
  • Adam Holmes is the Processing Manager of Empire Mortgage Company, a firm that processes loan applications for a number of region
    6·1 answer
  • Two types of business communications enhanced by desktop publishing are
    14·1 answer
  • Jessica is trying to get a credit card. She has a credit score of 790. How is Jessica’s lender likely to view this credit score?
    6·2 answers
  • Given the following information for the year ended December 31, what is the ratio of cash to monthly cash expenses? Negative cas
    12·1 answer
  • Swifty Corporation has 46,500 shares of $13 par value common stock outstanding. It declares a 15% stock dividend on December 1 w
    7·1 answer
  • Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Heap Company manufactures a product that passes through tw
    7·1 answer
  • A national grocery chain is divided into well-demarcated groups such as the Northeastern division, the Northwestern division, th
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!