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
Jamal has been tasked with putting together a new team for a new Starbucks project line. As Jamal thinks through the components
inysia [295]

Answer:

C. team composition

Explanation:

Team composition -

It is the overall combination of the people with different characteristics in a team ,  where the people interact in order to attain a common goal , is known as team composition .

The team could have homogeneous or heterogeneous members .

hence , from the question information , Jamal is concerned with the team composition .

4 0
3 years ago
The long-run aggregate supply curve is vertical because: minimum wage sets the long-run wages. the price level is constant in th
mixas84 [53]

Answer:

The correct answer is the second option: The price level is constant in the long run.

Explanation:

To begin with, the concept of the <em>"aggregate supply"</em> refers to the total amount of goods and services that firms are willing and are able to offer at a certain price level given and at a determine period of time. Moreover, at the long-run the aggregate supply curve is not affected by many variables as it is in the short run and this is due to the fact in the long run the economy is said to be at full capacity and optimally and also because the changes in the aggregate demand are only affective in the short run to the economy's total output.

4 0
3 years ago
Ayayai Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $200,
Ket [755]

Answer:

Option (B) is correct.

Explanation:

Amount of which adjusting entry required:

= Amount of uncollectible accounts - Balance in Allowance for uncollectible accounts

= (Balance in accounts receivable × Estimated percentage of accounts receivable to be uncollectible) - Balance in Allowance for uncollectible accounts

= ($200,000 × 4%) - $2,000

= $8,000 - $2,000

= $6,000

Therefore, the adjusting entry is as follows:

Bad debt expense A/c      Dr.  $6,000

To Allowance for uncollectible accounts    $6,000

(To record the bad debt expense)

5 0
3 years ago
An investment adviser representative is also a commisioned representative at a brokerage firm. the iar has developed an asset al
Zolol [24]

Answer:

The options include:

[A] cannot implement the plan

<em>[B] can implement the plan </em>

[C] can implement the plan only if no commissions are charged

[D] can implement the plan only if no management fee is charged

<em>[B] can implement the plan  is Correct</em>

Explanation:

Because the client or consumer has been fully disclosed and he agrees that the Adviser / Representative will obtain a management fee and commissions the Advisor / Representative will be allowed to progress with the project.

5 0
3 years ago
Risks of global trade include all of the following EXCEPT ________.
mihalych1998 [28]

Answer:

Option e: Increased opportunities for growth

Explanation:

Global trade is simply the exchange of goods between different countries.Trade is an exchange of items between people or countries.Countries are able to obtain goods they need from other countries.

four major risks in international business includes Country risk, commercial risk, cross-cultural risk, and currency risk.

Increased opportunities for growth is not an effect of risk in global trade.

6 0
3 years ago
Other questions:
  • The management of prime manufacturing is implementing a plan to minimize production mistakes by allowing teams that work in each
    8·2 answers
  • When determining whether to record an asset as a fixed asset, what two criteria must be met?
    7·1 answer
  • Jean Piaget's use of the term "operational" is most aligned with the concept of ________.
    7·2 answers
  • ______ within the marketing channel can provide efficiencies and economies of scale as channel members take on tasks that best u
    8·2 answers
  • Mike, an attorney, earns $200,000 from his law practice and receives $45,000 in dividends and interest during the year. In addit
    7·1 answer
  • Complex numbers are often used when dealing with alternating current (AC) circuits. In the equation $V = IZ$, $V$ is voltage, $I
    11·1 answer
  • Which is not a feature of the four‑firm concentration ratio? a) It is an indicator of the oligopolistic nature of an industry. b
    12·1 answer
  • Morris is a software engineer for a manufacturer. He wrote a program for the accounting department. During the testing phase, he
    11·1 answer
  • ASAP!! Discuss Maslow’s Hierarchy of Needs Theory. In your opinion, is it a good motivator for employees to
    8·1 answer
  • Jim paid $250,000 for an apartment building with a fair market value of $260,000. At the time of the sale, the building was appr
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!