Answer:
Annual increase is $1,108.4
Explanation:
In 2016, average price was $27,258.6
In 2010, average price was $20,608
Average increase in 6 years = $27,258.6 - $20,608 = $6,650.6
Annual average increase = $6650.6/6 = $1,108.4
Answer and Explanation:
The computation is shown below:
a. Marpor's value without leverage is
But before that first we have to calculate the required rate of return which is
The Required rate of return = Risk Free rate of return + Beta × market risk premium
= 5% + 1.1 × (15% - 5%)
= 16%
Now without leverage is
= Free cash flows generates ÷ required rate of return
= $16,000,000 ÷ 16%
= $100,000,000
b. And, with the new leverage is
= (Free cash flows with debt ÷ required rate of return) + (Tax rate × increase of debt)
= ($15,000,000 ÷ 0.16) + (0.35 × $40,000,000)
= $93,750,000 + $14,000,000
= $107,750,000
The single sum at the employment date would make her indifferent between the two options is: $72,867.
<h3>Single sum at the employment date</h3>
Using this formula
Single sum=Amount- received+ Present value
Let plug in the formula
Single sum=$30,000+($50,000/(1+0.08)²
Single sum=$30,000+($50,000/(1.08)²)
Single sum=$30,000+($50,000/1.1664)
Single sum=$30,000+42,867
Single sum= $72,867
Inconclusion The single sum at the employment date would make her indifferent between the two options is: $72,867.
Learn more about single sum here:brainly.com/question/24576997
