Answer:
The value of Ted stock is $2.43
Explanation:
Free cash flow From Year 1 to 5 = $200000
Cash Flow Year 6 = 200000*1.05
= $210000
This cash flow is expected to grow forever, so the terminal value can be caluclated at Year 5 of the above perptuity by Gordon Growth model
Terminal Cash FLow Value at Year 5 = 210000/(15% - 5%)
= $2100000
Present Value of above stream
= 200000*PVIFA(5 yr, 15%) + 2100000*PVIF(5 yr, 15%)
= $200000*3.352 + $2100000*0.497
= $1714100
Value of equity = Present Value of Firm - Value of debt
= $1714100 - $500000
= $1214100
Number of shares = 500000
Value per share = $1214100/500000
= $2.43
Therefore, The value of Ted stock is $2.43
Answer:
Option (c) is correct.
Explanation:
Lawrence can complete a task in three hours and will be paid:
= $20 × 3 hours
= $60
Three hours payment for Kelly:
= $90 × 3 hours
= $270
Kelly has more architectural jobs than she is able to handle.
Therefore, if she do the work herself, it would be faster. She'll earn $270 while $60 pays to Lawrence.
However, if she doesn't hire him then she'll lose out a complete amount of $270 if she doesn't take the more architectural jobs.
Hence, it is advisable that Lawrence should be hired at the $20 per hour wage rate.
Answer:
Millennials.
Explanation:
Millennials is the general term for people that are born in the 1980s and 1990s. Sometimes children born in the early 2000s are also included.
Millennials are also called generation Y and comes after generation X (1960s to 1980s).
These class have been characterised as being lazy, as is seen Mariah likes the fact that she can work from home.
They are also narsicistic, less concerned about helping the larger community, and prone to jump from one job to another.
They have positive attributes of being open minded, confident, self-expression, and liberal.
The answer to your question is true