The population of the Republic of Butters is 165.

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

A characteristic found only in oligopolies is products that are slightly different. interdependence of firms. break even level o

Delvig [45]

Answer:

The correct answer is the interdependence of firms.

Explanation:

An oligopoly market is a market structure where there are a few firms. these firms are interdependent. Price and output decisions of a firm affect its rivals. An oligopoly firm faces a downward-sloping demand curve.

In other market structures like monopolistic or perfect competition, the firms are not interdependent.

7 0

3 years ago

when you interpret the behavior of others according to your experiences and understanding of the world, your evaluation is.

Alla [95]

Your evaluation is Egocentric - limited to your own egoic perspective and without consideration of the experiences and understanding of others (which may be very different)

3 0

3 years ago

Read 2 more answers

Operating costs are the opposite of

NeX [460]

Answer:

Variable expenses. I'm not sure

6 0

3 years ago

Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at the lower of cost

ANTONII [103]

In class 2 ., The Model D is the Top/ favorite one having highest market return (24%) with lowest inventory cost ($79)

Explanation:

To Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. simply we should calculate the profit margin for each category

Profit margin = (market value - cost price) = Profit ÷ cost price × 100

Class 1:

Model A

46 $116 $139

Profit margin = (139 - 116) = 23 ÷ 116 × 100 = 19.32%

Model B

49 243 239

Profit margin = (239 - 243)= -4 ÷ 243 × 100 = - 1.65% (loss)

Model C

43 233 252

Profit margin = (252 - 233) = 19 ÷ 233 × 100 = 8.15%

Class 2:

Model D

37 79 98

Profit margin = (98 - 79) = 19 ÷ 79 × 100 = 24%

Model E

6 151 130

Profit margin = (130 - 151) = - 21 ÷ 79 × 100 = -13.91 % (loss)

Result

In class 1

Model A is preferable., It has the lowest inventory value and has highest market value (Returns) at 19.82%

In class 2

Model D is preferable., It has the lowest inventory value and has highest market value (Returns) at 24%

Overall the Model D is the Top/ favorite one having highest market return with lowest inventory cost

3 0

3 years ago