Answer:
a. $47.3 billion
Explanation:
The computation of the current value of the firm is as follows;
Value of Equity = FCFE × (1+ g ) ÷ (ke - g)
= $2 billion × (1 + 0.03) ÷ (0.12 - 0.03)
= $22.89 billion
Now
Current Value of Firm = Market Value of equity + market Value of Debt
= $22.89 billion + $24.44 billion
= $47.3 billion
Hence, the current value of the firm is $47.3 billion
hence, the correct option is A.
Answer:
The correct answer is b) American will leave fares unchanged and Southwest will leave fares unchanged.
Explanation:
The Nash Balance is a situation where individuals or players have no incentive to change their strategy taking into account the strategy of their opponents.
In the Nash equilibrium, the strategy chosen by each participant of a conflict or game is optimal, given the strategy chosen by the others. In other words, nobody will gain anything if they decide to change their strategy under the assumption that the other individuals do not change theirs.
It should be noted that under the Nash equilibrium the greatest gain is not necessarily obtained for all individuals or players as a whole. It is only true that each responds optimally to the strategy of others. In many cases, individuals would like to be able to reach another balance with higher profits but fail to do so because they face the risk of being betrayed.
Answer:
Letter d is correct. <em>Commodity chain</em>
Explanation:
Commodity chain is a technique widely used in the globalized capitalist world. In this process organizations produce their goods in various locations, which becomes a connected link of production and distribution in a globalized market. The advantages of the commodity chain is to achieve significant cost savings from purchasing goods from other countries, as well as increased production volumes and reach of international customers that enhances an organization's global perspective.
Answer: D - A disclosure note is required when the loss is remote and the amount can be reasonably estimated
Explanation:
A contingent liability is an obligation that might arise from an event that would occur in the future.
A contingent liability isn't disclosed when payment is remote.
A contingent liability is recorded when:
1. it is probable the event would occur.
2. there is a reasonable estimate the amount of the loss.
I hope my answer helps.
