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Tema [17]
2 years ago
13

Michonne Corp.'s Free Cash Flow (FCF) for the most recent year (year 0) is $730 (million). FCF is expected to grow by 14% next y

ear (1 year from now), by 10% the year after that (2 years from now), and by 5% per year thereafter. Michonne's WACC is estimated at 8%. The estimated Enterprise Value (Value of Operations) for Michonne is $____________(million).
Business
1 answer:
kipiarov [429]2 years ago
8 0

Answer:

enterprise value = $29,024.26 million

Explanation:

first we must calculate the terminal value in year 2:

terminal value = FCF₃ / (WACC - g)

  • FCF₃ = $730 x 1.14 x 1.1 x 1.05 = $961.191
  • WACC = 8%
  • g = 5%

terminal value = $961.191 / (8% - 5%) = $32,039.70

enterprise value = $832.2/1.08 + $915.42/1.08² + $32,039.70/1.08² = $770.556 + $784.825 + $27,468.879 = $29,024.26 million

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Mrs. Larkin rents an apartment to a couple who argue continually, disturbing other tenants. Without going through the lawful evi
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Answer:

B.  an actual eviction

Explanation:

Actual eviction -

It refers to the process of getting rid of the tenant by the landlord, for any violation, is referred to as actual eviction.

It is a completely legal practice, where it the landlord is not not comfortable with the tenant or if the tenant violates any rules, then the landlord has the legal right to remove the person.

Hence, from the given question,

As the tenant usually disturbs the neighbors and argues, hence the landlady, Mrs, Larkin has the right to remove them, according to actual eviction.

6 0
2 years ago
What arethe involvement factors likely to be associated with buying a new computer?
Studentka2010 [4]

The involvement factors would be the price of the computer, the style, the model, and the things you could do with the computer.

8 0
3 years ago
4. Which of the following is true of social capital?
maks197457 [2]

Answer:

Option C.

Explanation:

Social capital is basically the relationships among people who live and work in a particular society, thus allowing that society to function effectively". As such. The value of social capital is determined by the number of the relationships in a social network.

8 0
2 years ago
A point outside (to the right of) the production possibilities curve of a nation implies that this nation is using its resources
PtichkaEL [24]

Answer:

is not attainable for this nation

Explanation:

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The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

Point outside the curve or to the right of the curve means that the production level is not attainable given the level of resources

Points inside the production possibilities curve means that the nations resources are not being fully utilised

Factors that cause the PPF to shift  

1. changes in technology.  

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3. changes in the labour force.  

8 0
2 years ago
Lake Co. receives nonrefundable advance payments with special orders for containers constructed to customer specifications. Rela
klasskru [66]

Solution :

We calculate the advances form the customer to be reported as the current liability as on Dec. 31, 2009 in the balance sheet as follows :

          <u>  Particulars  </u>                                                               <u>  Amount ($)</u>

Customer advances the balance Dec 31, 2008                           110

Add : advances that is  received with 2009 orders is                 195

Less : advances applicable to the orders in 2009                      -180

Less : advances from orders that are canceled in 2009          <u>  -45  </u>

Advances from the customers liability Dec. 31, 2009                  80

Therefore, the advance from the customer to be reported in the balance sheet as the current liability is $80.

6 0
2 years ago
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