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
Answer:
d, $24,500
Explanation:
Computation for the Operating income for Winston Corporation as a whole if the Blur Division were dropped
Operating income (loss) for Blink Division $56,000
Less Allocated common costs Blur Division (31,500)
Operating income for Winston Corporation $24,500
Therefore the Operating income for Winston Corporation as a whole if the Blur Division were dropped would be $24,500
Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?
<span>
It has low liquidity because selling would often require selling at a loss.
High volatile investments are investments that always fluctuates in the market. It can generate you very high income or very low income. It has low liquidity because when you sell it right away, you tend to sell at a loss.</span>
Answer:
250
Explanation:
total cost= unit cost x units
there are different unit costs every day shown apart from august 29, i used the latest date of 6 dollars per unit instead.
13 x 4 + 18 x 6 + 15 x 6 = 250
Answer:
b. personal taxes increase the value of using corporate debt.
Explanation:
Since the interest on debt funding is excluded from corporate tax, the leverage may have a beneficial impact in increasing the valuation of a company. The value of the leveraged firm will also rise due to debt as compared with the value of the unlevered firm, since the unlevered firm does not benefit from the benefits of tax savings. When the debt increases, leverage gains increasing.
Hence, the correct option is b.
