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Anna35 [415]
4 years ago
14

Gonzales Corporation generated free cash flow of $88 million this year. For the next two years,the companyʹs free cash flow is e

xpected to grow at a rate of 10%. After that time, the companyʹsfree cash flow is expected to level off to the industry long-term growth rate of 4% per year. Ifthe weighted average cost of capital is 12% and Gonzales Corporation has cash of $100 million,debt of $300 million, and 100 million shares outstanding, what is Gonzales Corporationʹsexpected terminal enterprise value in year 2?A) $1384.24B) $1245.82C) $1107.39D) $968.97
Business
1 answer:
Papessa [141]4 years ago
7 0

Answer:

option (A) $1,384.24

Explanation:

Given:

Free Cash Flow in Year 3 = $88 million

Expected growth rate = 10% = 0.1

Constant Growth Rate, gC = 4%

Gonzales Corporationʹsexpected terminal enterprise value in Year 2

= \frac{\textup{FCF3}}{\textup{(WACC - gC)}}

= \frac{FCF0\times(1+gH)^2\times(1+gC)}{\textup{(WACC - gC)}}

Here,

FCF3 is the Free Cash Flow in Year 3

FCF3 is Free Cash Flow Now

= \frac{\textup{88\times(1 + 0.10)^2\times(1 + 0.04)}}{\textup{(0.12 - 0.04)}}

= $1,384.24

Hence,

The correct answer is option (A) $1,384.24

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In an organization, the functional level is made up of ________, which provide specific and focused strategic direction.
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The functional level of an organization is made up of departments, which provide specific and focused strategic direction for the company to achieve its objectives and goals set out in the planning.

<h3 /><h3>Functional level</h3>

It provides support for the strategy developed in the organization, with the general objective of generating greater competitiveness for the company, effectively maintaining the corporate performance of each integrated system.

Therefore, functional departments exist in a company so that each sector has the necessary focus on resources, units and people in order to generate greater compliance with the organizational strategy and objectives.

The correct answer is:

  • Departments

Find out more information about functional level here:

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5 0
2 years ago
What is the biggest difference in who controls the 401(k) and IRA retirement plans? a. IRA is intended for a stable retirement i
Licemer1 [7]

Answer:

The answer is: D) A 401(k) is controlled and monitored by an employer, and an IRA is controlled by the investing individual.

Explanation:

A 401(k) is sponsored and controlled by an employer. The employer decides where the money is going to be invested. Sometimes the employer may match some of the employees' contributions. The employer can also take loans or hardship withdrawals from the 401(k) funds.

While IRA accounts are held by custodians which are banks or brokerage firms.

5 0
3 years ago
Read 2 more answers
Executive orders 12674 and 12731 form the foundation policy on the ethical conduct of Federal Employees
sladkih [1.3K]

Answer: a. Making authorized commitments

Explanation:

Executive Orders 12674 and 12731 (which amended 12674) of 1989 and 1990 respectively, were signed by President Bush with the purpose of setting forth the principles of ethical conduct that were required of Federal Government Officers and Employees.

These principles were meant to ensure that government officials and employees abstained from Abuse of power whilst working in such a way as not to bring disrepute to the Federal Government.

All of the above are violations of the Order except option A which is stated in Part I Section 101 (f) of Executive Order 12674. It reads that, "<em>Employees shall make no unauthorized statements</em>..." thus insinuating that employees are allowed to make Authorized statements.

8 0
3 years ago
(01.02 mc) which of these actions was an economic cause of increased tensions between the north and south?
Damm [24]

The correct option is (b) Protective tariffs

Protective tariffs aim to make imported goods more expensive while protecting domestic producers from overseas rivalry.

<h3 /><h3>What is protective tarrifs?</h3>
  • An illustration of a protective tariff would be the US raising the customs charge on clothing imported from Britain so that it is significantly more expensive than clothing made domestically.
  • The importing countries profit the most from tariffs since they design the policy and receive the cash.
  • The main advantage of tariffs is that they generate income from imported products and services. Tariffs may also serve as a springboard for negotiations between two countries.
  • Protective tariffs are designed to shield vital American industries from international competition, stop foreign manufacturers from dumping inexpensive goods in the US, or both.

Learn more about the Tarrifs with the help of the given link:

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#SPJ4

I understand that the question you are looking for is "Which of these actions was an economic cause of increased tensions between the North and South?

(a) Dred Scott decision

(b) Protective tariffs

(c) Bleeding Kansas

(d) Lincoln’s election"

6 0
1 year ago
Drew bought a computer for personal use from Hale Corp. for $3,000. Drew paid $2,000 in cash and signed a security agreement for
Svet_ta [14]

Answer:

Obtain a deficiency judgment against Drew for the amount owed.

Explanation:

Even though Hale repossessed the computer, it must still seek a deficiency judgment against Drew in order to recover the money owed. If Drew cannot pay his debt, he has the right to request Hale to sell the computer in order for Hale to recover the money owed.  

Repossession is one way that a lender can use to reclaim property that was put as collateral for a loan. For example, if you do not pay your car loan, the lender can simply repossess your car by taking it away without a court order. But the debtor still had the right to try to reclaim the property by paying the debt or agreeing on some type of payment procedure.

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