Answer:
Explanation:
Let's first determine the free cash flow of the firm
Particulars Years
1 2 3
EBIT 540 680 750
<u>Tax at 36% (0.36*540) (0.36*680) (0.36*750) </u>
Less: 345.6 435.2 480
Net Capital -
Spending 150 170 190
<u>Change in NWC 70 75 80 </u>
Less: 125.6 190.2 210
The terminal value at the end of T =(3 years) is:



= 2011.26
Finally, the value of the firm can be computed as follows:
Years Free Cash Flow PVIF PV
1 125.6 0.6589 107.88
2 190.2 0.7377 140.31
3 210 0.6336 133.06
<u>Terminal Value 2011.26 0.6336 1294.33 </u>
<u>Value of the firm ⇒ $1655.58</u>
Answer:
c. 120,000 shares
Explanation:

*Assumed purchase of treasury shares
$600,000
//
Note: The proceeds also must be increased (or decreased) by any tax benefits that would be added to (or deducted from) paid-in capital when the eventual tax deduction differs from the amount expense, the "excess tax benefit." Since that occurs when the stock price at vesting differs from the stock price at the grant date, the fact that the market price remained at $10 avoided that issue.
This participative style of leadership suggests that Gary is a <u>"democratic" </u>leader.
Democratic leadership, otherwise called participative leadership or shared leadership, is a sort of leadership style in which individuals from the gathering play a more participative job in the basic leadership process. This sort of administration can apply to any association, from private organizations to schools to government.
Everybody is given the chance to take part, thoughts are traded unreservedly, and talk is energized. While the majority rule process tends to center around gathering equity and the free stream of thoughts, the pioneer of the gathering is still there to offer direction and control. The democratic leader is accused of choosing who is in the gathering and who gets the opportunity to add to the choices that are made.
D. Removes the lien from part of the property when part of the debt has been paid. This clause is used in commercial loans to allow a developer to repay part of the debt to remove the lien on part of the property. It is negotiated for agreed-upon payments to free multiple parcels of property separately to encourage development.