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
tatiyna
3 years ago
13

EMC Corporation has never paid a dividend. Its current free cash flow of $490,000 is expected to grow at a constant rate of 4.4%

. The weighted average cost of capital is WACC = 13%. Calculate EMC's estimated value of operations. Do not round intermediate calculations. Round your answer to the nearest dollar.
Business
1 answer:
disa [49]3 years ago
7 0

Answer:

$5,697,674

Explanation:

Dividend Valuation method is used to value the operations of a company based on the dividend paid, its growth rate and rate of return/WACC. The price is calculated by calculating present value of future dividend payment.

Free cash flow is the residual cash flow of operation after paying the capital expenditure from net income of the company. It represent the cash from the operations.

Formula to calculate the value of operation

Value of Operations = FCF / ( WACC - growth rate )

Value of Operations = $490,000 / ( 13% - 4.4% )

Value of Operations = $5,697,674

You might be interested in
Carlos needs to combine words in a First Name and a Last Name column. Which of the following functions should he use
pantera1 [17]

Answer:

with space: =A2&" "&B2

without space: =CONCATENATE(A2,B2)

Explanation:

When using Microsoft Excel the function that you would want to use would be the following

=A2&" "&B2

In this function, you will be combining the text in cell A2 and B2 with a space in the middle, you can change to the cells that you want and simply add &" "& in between them to combine them with a space.

If you simply want to combine the words with no space in between them you can use the concantenate function which combines words in two cells into one but without space.

=CONCATENATE(A2,B2)

4 0
2 years ago
Beta Corp., a gaming software company, had recently launched a new game. The target audience identified by the company was the a
SashulF [63]

Answer:

Emergent strategy

Explanation:

Emergent strategy -

It is the process to determine the unexpected outcome due to the execution of the corporate strategy and then integrating the unpredictable outcomes into the future corporate plans , is knows as the Emergent strategy .

As , with the help of social media platform , it is used to magnify the marketing plan .

Hence , the same same case is given in the question , therefore the correct term for the given information is Emergent strategy .

5 0
3 years ago
Financial educators often recommend that individuals should:
Marina86 [1]

Answer: D

Explanation: it is advisable to use government benefits as an important source of income prior to retirement. Since income will no longer flow like before during the retirement period, government benefit and other allowance remain as the source of income for especially in a situation where there is no other private source of income.

3 0
3 years ago
Stacey and Andrew each own one-half of the stock in Parakeet Corporation, a calendar year taxpayer. Cash distributions from Para
Fittoniya [83]

Answer:

Option 3

Explanation:

Earnings & profits (E&P) is the measure of a corporation’s economic ability to pay dividends to its shareholders. An up-to-date E&P calculation is important for many corporate transactions, including determining whether a distribution to shareholders is a taxable dividend.

The E&P allocated to Andrew's distribution

= 160,000 * 150,000/(350,000+150,000)

= 160,000 * 150,000/500,000

= 48,000

Option C

8 0
2 years ago
This year Randy paid $29,050 of interest on his residence. (Randy borrowed $464,000 to buy his residence, and it is currently wo
Luden [163]

Answer:

the last part of the question is missing, so I looked for it:

a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.

b. Randy had no investment income this year, and his AGI is $75,000.

a) Randy can deduct $31,575:

  • the mortgage interest is deductible
  • the car loan interest is not deductible
  • he can deduct $4,725 - $2,200 = $2,525 as investment interest expense

b) Randy can deduct $29,050

  • the mortgage interest is deductible
  • the car loan interest is not deductible
  • since he had no investment revenue, he cannot deduct any investment interest expense

5 0
3 years ago
Other questions:
  • Kelsey wants to know what the main purpose of the visuals in the committee's report will be. what will you tell him?
    13·1 answer
  • What does it mean for a company to have a competitive advantage
    15·1 answer
  • Monica graduated from high school this year and has a steady job. She feels ready to move into her own space and has $1,200 in s
    11·2 answers
  • Taser Industries must decide whether to make or buy some of its components. The costs of producing 175,000 battery packs for its
    13·1 answer
  • Gleam Clean cleans and waxes floors for commercial customers. The company is presently operating at less than capacity with equi
    13·1 answer
  • The situations presented here are independent of each other.For each situation, prepare the appropriate journal entry for the re
    11·1 answer
  • What does the word pusillanimous mean?​
    14·2 answers
  • Because tacit knowledge is so difficult to communicate, _______ might be the single best way to acquire it. Select one: a. writt
    5·1 answer
  • Wasif would like to add some flair to text on a slide in his presentation. Which option can he use to create more dynamic graphi
    5·2 answers
  • According to the order of operations in solving equations, which step should come first?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!