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Leno4ka [110]
3 years ago
14

You have been assigned the task of using the corporate, or free cash flow, model to estimate Petry Corporation’s intrinsic value

. The firm’s WACC is 10.00%, its end-of-year free cash flow (FCF1) is expected to be $75.0 million, the FCFs are expected to grow at a constant rate of 5.00% a year in the future, the company has $200 million of long-term debt and preferred stock, and it has 30 million shares of common stock outstanding. What is the firm’s estimated intrinsic value per share of common stock?
a. $40.35
b. $41.82
c. $43.33
d. $44.85
e. $46.42
Business
1 answer:
KengaRu [80]3 years ago
8 0

Answer:

C. $43.33

Explanation:

FCF1 = $75.00

Constant growth rate = 5%

WACC = 10%

Total firm value = FCF1/(WACC-g) =$1,500

Value of debt & preferred=$200

Value of equity = $1,300

# of shares = 30

Value per share = equity value /shares =$43.33

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Arden Company reported the following costs and expenses for the most recent month:
Genrish500 [490]
Answer:
1) $141,000
2) $198,000
3) $ 61,000
4) $122,000

Explanation:
1) we sum ($80,000+$42,000+$19,000)= $141,00,0 according to the cost’s theory

2) we sum all amounts (80,000+42,000+19,000+22,000+35,00)= 198,000 we sum all amounts because those are the cost that the company incurred In the period.

3) Conversion cost we obtain summing direct labor+ manufacturing overhead ( 42,000+19,000)= $61,000

4) Prime costs we obtain summing direct materiales+ direct labor ( 42,000+80,000)= $122,000


8 0
2 years ago
Which of the following cannot be a type of reward for encouraging innovation in your organization Select one: O a. Putting a pos
allochka39001 [22]

Considering the available options, the option that cannot be a type of reward for encouraging innovation in your organization is "<u>None of the above."</u>

This is because the rewards for encouraging innovation can be both tangible and intangible.

<h3>Examples of rewards for encouraging innovation are:</h3>
  • Putting a poster mentioning achievement along with photograph on main notice.
  • Giving a Cash prize.
  • Giving a promotion to some different department or location, etc.

Hence, in this case, it is concluded that the correct answer is option D. "<u>None of the above."</u>

Learn more about Rewards here: brainly.com/question/25646413

7 0
2 years ago
What are at least two things athlete shown for the first few minute
Vanyuwa [196]
AGILITY AND STRENGTH
5 0
3 years ago
An investor purchased 100 shares of stock x at \small 6\frac{1}{8} dollars per share and sold them all a year later at 24 dollar
tiny-mole [99]

Answer:

(c) 280%

Explanation:

Given that

Number of shares purchased = 100 shares

Purchase cost of a share = 49 ÷ 8

Sale price of a share = $24

And, brokerage paid = 2%

Now the purchase cost is

= 100 shares × 49 ÷ 8 + 2% × 100 shares × 49 ÷ 8

= $612.5 + 0.02 ×$612.50

= $624.75

And, the income amount arise from the sales is

= $24 × 100 - 2% of $2,400

= $2,400 - $48

= $2,352

Now the percentage gain on the investment is

= (Income - purchase amount invested)  ÷ (Purchase amount invested) × 100

= ($2,352 - $624.75) ÷ ($624.75) × 100

= ($1,727.25) ÷ ($624.75) × 100

= 276.43% or 280%

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3 years ago
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