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 adjusting entry on December 31 of the current year for Plum would include:
E) A debit to an expense and a credit to a prepaid expense for $1,875.
Explanation:
On July 1 of the current calendar year, Plum Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1.
Management services fee per month = $7,500/24 = $312.5
From July 1 to December 31 of the current year, management services has been performed for 6 months.
The amount of Management services expense should be record:
$312.5 x 6 = $1,875
The adjusting entry:
Debit Management services expense $1,875
Credit Prepaid expense $1,875
Answer: In the markets for factors of production, "(B) households provide firms with labor, land, and capital.".
Explanation: Companies and households interact between 2 markets.
The market of goods and services: is one in which companies sell products and services to homes.
The market of productive factors: it is one in which households sell productive factors to companies so that they can produce goods and services.
Answer: <em>Option (D) is correct.</em>
Explanation:
<em>In the following scenario, the organization have wasted time and resources on IT functions when they should have instead worked on factors such as marketing, customer service, and new product design. </em>
<em>If they would've used Outsourcing, they would've been able to work on their core instruments. Outsourcing is referred to as an contract in where one organization hires another to be culpable for a planned enterprise that is done internally, or often implicates carrying over individuals and assets from one organization to another.</em>
Answer:
Intelligence and will-power.
Explanation:
Most might say that leadership and bravery. Although, if you bring a group of people who are intelligent in the business and are ready to dedicate themselves, you can get a lot done, and maybe even have a successful business within a few months/weeks.
This might sound a little weird, but money is also a very needed characteristic within a team. If you are making something big, and you believe in it, you need money for assistance with assets and other things.
I'm sorry if I misunderstood the question, that's my fault. I just found this question very interesting and I think it would've been nice to answer.
