Answer:
Find attached full question:
The correct option is D.$42.79
Explanation:
In order to determine the current price per share of the company now,we discount all future free cash flows to present value as well as the company's terminal value:
company's terminal is the value of the company after the considered timing horizon
terminal value=free cash in year three*(1+g)/r-g
free cash flow in year three is $40 million
g is the growth rate of free cash flow which is 7%
r is the WACC of 13%
terminal value=40*(1+7%)/(13%-7%)=$ 713.33 million
Present of the company=-$20/(1+13%)+$30/(1+13%)^2+$40/(1+13%)^3+$713.33/(1+13%)^3=$ 527.89 million
The company's value of equity=present worth-debt== 527.89-100=427.89 million
share price=value of equity/number of shares== 427.89/10=$42.79
Reality test of a business plan involves proving that a market for the product or service really does exist and that the company can produce the product or provide the service at a reasonable cost.
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Explanation:</u></h3>
An entrepreneur must be successful in the business he starts as he takes ;lot of risks with that. It is very essential for an entrepreneur to create a business plan before taking any forward steps in the business. Performing the reality check will help an entrepreneur to ensure that he is in the right track of the business.
In the reality check, an entrepreneur gets to know about the viability of the market, his own strength and weakness and the financial position for the production of the products. It helps an entrepreneur to know about the demands that exists for his product and how can he produce those products or services as reasonable cost.
If you ask the business if you can use their photo and then say you can then they can’t sue you for copyright.
If you take the photograph and don’t ask you can be sued.
I don’t think you will ever own the photograph unless the business signs the rights over to you
Not 100% sure but I hope this helps :)
Answer:
The answer is average total costs are rising at Q=500
Explanation:
Average total cost (ATC) equals total cost divided by the entire quantity of units made or produced(total cost ÷ quantity of units produced).
Marginal cost (MC) is additional cost incurred by producing one additional unit of output.
When incremental cost is above average total cost, average total cost are going to be rising and when incremental cost is below average total cost, average total cost are going to be falling.
A firm is producing efficiently at the minimum average total cost, which is additionally where (ATC) = MC
Answer:
Bounded rationality
Explanation:
Bounded rationality - it is referred to the idea during the decision making that illustrate that decision of any individual depend upon rationality which further depends upon information, experience and amount of time in which an individual has to make a decision.
In simple terms, people's decision-making processes are bounded by factors like available information, experience, computational ability and restricted time.