At what level are milestones tracked?

Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income

melamori03 [73]

Answer:

The company's stock price today should be $71.17 per share.

Explanation:

The corporate valuation model approach can be used to estimate this by using the following steps:

Step 1: Calculation of the free cash flow

Free cash flow is the cash a firm generates after accounting for capital expenditure. This can be estimated using the following formula:

Free Cash Flow (FCF) = After-tax operating income + Depreciation expenses - Capital expenditure

For this question, we therefore have:

Free Cash Flow (FCF) = $700 + $150 - $375 = $475 million

Step 2: Calculation of Value of operations (Vo)

Vo = FCF / (WACC - FCF growth rate) = 475 / (11% - 7%) = $11,875 million

Step 3: Calculation of the Firm value

Firm value = Vo + Non-operating assets = $11,875 + $199 = $12,074 million

Step 4: Calculation of value of equity

Value of equity = Firm value - Debt = $12,074 - $3,534 = $8,540 million

Note: The correct amount of debt is $3,534 not $3.540 as mistakenly given, may be due to typographical error, in the question.

Step 5: Calculation of stock price per share today

Stock price per share = Value of equity / Number of shares outstanding = $8,540 / 120 = $71.17 per share

Therefore, the company's stock price today should be $71.17 per share.

7 0

3 years ago

Mona's flexible work schedule indirectly enhances her children's development by allowing her time off for school activities and

grigory [225]

Answer:

C. exosystem

Explanation:

According to my research on studies conducted on child development, I can say that based on the information provided within the question this is an example of interactions within the exosystem. This is what contains environmental elements that have a significant influence on a child's development, even though that child is not directly involved with them.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0

3 years ago

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You invest $600 in security A with a beta of 1.5 and $400 in security B with a beta of 0.90. The beta of this portfolio is _____

klio [65]

Answer:

Beta= 1.26

Explanation:

First, we will calculate the proportion of the portfolio of each security:

Security A= 600/1,000= 0.6

Security B= 400/1,000= 0.4

Now, the beta of the portfolio:

Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)

Beta= (0.6*1.5) + (0.4*0.9)

Beta= 1.26

7 0

3 years ago

The CPI is a measure of the overall cost of goods and services produced in the economy the overall cost of inputs purchased by a

lakkis [162]

Answer:

The overall cost of buying a market basket of goods and services by a typical customer.

Explanation:

The question is incomplete, but I figured that the question is trying to find out the correct meaning of CPI with different options provided. The correct question should be:

The CPI is a measure of

the overall cost of goods and services produced in the economy
the overall cost of inputs purchased by a typical producer
the overall cost of buying a market basket of goods and services by a typical consumer
the overall cost of stocks on the New York Stock Exchange

Which option is correct?

CPI or Consumer Price Index evaluates the average prices of a basket of consumer goods and services, for instance, medical care, food, and transportation. It is evaluated by analyzing the changes in and averaging the price of each item in the basket of consumer goods and services.

The CPI is usually used especially to discover situations of inflation of deflation.

5 0

3 years ago

The table shows human development indicators from 2013. Which best describes the relationship between education and life expecta

VladimirAG [237]

A. More education can help increase life expectancy. :)

4 0

3 years ago

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