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iren2701 [21]
3 years ago
14

Scampini Technologies is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constan

t rate of 3% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 12%. If Scampini has 65 million shares of stock outstanding, what is the stock's value per share
Business
1 answer:
otez555 [7]3 years ago
5 0

Answer:

$21.37

Explanation:

Firm value = FCF1 / (WACC – g)

Firm value = $125,000,000/(0.12 – 0.03)

Firm value = $1,388,888,888.89

Equity value per share = Equity value / Shares outstanding

Equity value per share = $1,388,888,888.89 / 65,000,000

Equity value per share = $21.37

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The market segmentation process:a. creates products for several markets that have independent needs. b. offers one version of th
aleksley [76]

Answer:

The correct answer is the option E: divides a market into distinct groups that have heterogeneous needs.

Explanation:

To begin with, the concept known as <em>''segmentation''</em>, in the field of marketing and in the business world, comprehends the process of dividing a market into different groups that have similar needs inside those groups but heterogenous needs among the groups and therefore the process focus in letting the company knows who its target audience actually is and so it can focus only in producing a good that will satisfy that group entirely. Moreover, there are different types of segmentation, such as demographic, geographic, etc.

3 0
3 years ago
Read 2 more answers
Manuel Hoped to graduate from college by age 22 but finds himself enrolling for the first time at age 52. The anxiety Manuel fee
HACTEHA [7]

Answer:

Social clock

Explanation:

The social clock refers to expectations set by society on preferred timings of accomplishing life milestones such as finishing school, getting married, having children etc. For example, because many students graduate from college by the age of 22, Manuel will feel pressured because he will complete college past the average completion age in society. This situation illustrates the social clock.

5 0
3 years ago
In one of the case studies in the textbook, Cy Chesterly was the vice president in charge of sales for one of the largest machin
Damm [24]

Answer:

A new president was hired and he found Chesterly out while reviewing the accounting records.

8 0
3 years ago
A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the
Sergeu [11.5K]

Answer:

a) The IRR is 10%

b) The FW if MARR = 12% is -$27070.25.

c) The ERR when externeal reinvestment rate per period is 12%. is 10.74%.

Explanation:

a)

PW(i%) = -23000 - 1200(P/A, i%, 4) - 8000(P/F, i%, 4) + 5500(P/A, i%, 11)(P/F, i%, 4) + 33000(P/F, i%, 15)

            = 0

Solve for i%

IRR = 10%

Therefore, The IRR is 10%

b)

FW (12%) = -23000(F/P, 12%, 15) - 1200(F/A, 12%, 4)(F/P, 12%, 11) - 8000 (F/P, 12%, 11) + 5500(F/A, 12%, 11) + 33000

= -23000(5.4736) - 1200(4.7793)(3.4785) - 8000(3.4785) + 5500(20.6546) + 33000

= -27070.25

Therefore, The FW if MARR = 12% is -$27070.25.

c)

[23000 + 1200(P/A, 12%, 4) + 8800(P/F, 12%, 4)](F/P, i%, 15) = 5500 (F/A, 12%, 11) + 33000

[23000 + 1200(3.0373) + 8000(.6355)](F/P, i%, 15) = 5500(20.6546) + 3300

31725.76 (1 + i)^15 = 146600.3

ERR = 10.74%

Therefore, The ERR when externeal reinvestment rate per period is 12%. is 10.74%.

5 0
3 years ago
The following information is available for Conger Company for the month of January: expected cash receipts $59,000; expected cas
Otrada [13]

Answer:

Basic cash budget for the month of January

Cash Receipts :

Receipts                               $59,000

Expenditures :

Disbursements                     $67,000

Net Cash                               ($8,000)

Beginning Balance               $12,000

Ending Balance                      $4,000

Loan amount                          $5,000

Explanation:

A Cash Budget gives an estimate of cash receipts and expenditures. It can also tell when and how much additional cash may be required to meet  minimum cash balances.

8 0
3 years ago
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