Answer:
= $52.78 per share
Explanation:
<em>The value of a business can be determined using the free cash flow model. According to this model, the value of a firm is is the present value of its free cash flow discounted at the weigthed average cost of capital (WACC.)</em>
<em>The value of equity is the value of firm less value of other instruments (e.g debt and preferred stocks)</em>
<em>Value of equity = Value of the entire firm - Value of debt </em>
We can work out the the value per share using the steps below:
<em>Step 1</em>
<em>Calculate the total value of the firm</em>
Value of firm = 27.50/(0.1-0.07)
= $916.66 million
<em>Step 2</em>
<em>Calculate the value of equity</em>
<em>Value of equity = Value of the entire firm - Value of debt</em>
= $916.66 million - $125.0 million
=791.666 million
<em>Step 3</em>
<em>Calculate the value per share</em>
Value per share = Value of equity/ units of common stock
=$791.666 million/15 million units
= $52.78 per share
Answer:
Example of not a natural experiment an economist might use to evaluate a theory is:
C. Here the Students in a microeconomics principles course are advised to play a game with their classmates to determine and evaluate what all decisions they make under certain adjusted circumstances.
Explanation:
Natural experiment : A natural experiment is referred to an observational and also an empirical study in which we get to study about the experimental and controllable varieties of variables. which can not het manipulated anywhere by the researchers.
Instead these experiments are allowed to affect the environment and the nature or the different factors which are not under control of our researchers. In contrast to the experimental values and all the natural experiments are even not controlled by the researchers but instead they also admire and obseve those experiments for their own studies.
So, the right option is:
C. Here the Students in a microeconomics principles course are advised to play a game with their classmates to determine and evaluate what all decisions they make under certain adjusted circumstances.
Answer:
16.59%
Explanation:
First we look at the formula which to determine the future value of the security and then work back to determine the annual return in terms of percentage
Future Value = Present Value x (1 +i)∧n
where i = the annual rate of return
n= number of years or period
We then plug the given figures into the equation as follows
we already know Present value to be $10,000 and the future value to be $100,000 and the number of years to be 15
Therefore, the implied annual return or yield on the investment is
100,000 = 10,000 x (1+i)∧15
(1+i)∧15 = 100,000/10,000 = 10
1 + i = (10∧(1/15))=1.165914
i= 1.165914-1
= 0.1659
= 16.59%
Which of the following is an example of irregular income?
A. A full-time job
B. A part-time job
C. A graduation gift
D. Both b and c
The answer is C
Answer:
Registration statement for securities under the Uniform Securities Act are effective for One year from the effective date. The SEC accomplishes theses goals primarily by requiring that companies disclose important financial through the registration of securities.
Explanation:
