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IgorC [24]
2 years ago
8

For a firm, analysts project the following free cash flows during the next 3 years, after which FCF is expected to grow at a con

stant 5% rate. The company's WACC is 11%. Now suppose the same company has $112.60 million of debt and 25 million shares of stock outstanding. What is your estimate of the CURRENT price per share. Year 0
Business
1 answer:
Llana [10]2 years ago
6 0

Answer:

the three next cash flows are missing, so I looked for similar questions and found:

  • FCF1 = $20 million
  • FCF2 = $25 million
  • FCF3 = $30 million

in order to determine the company's value, we must first determine the horizon value in 3 years:

horizon value in year 3 = [$30 million x (1 + 5%)] / (11% - 5%) = $31.50 million / 6% = $525 million

the current value of the firm = $20/1.11 + $25/1.11² + $30/1.11² + $525/1.11³ = $18.02 + $20.29 + $21.94 + $383.88 = $444.13 million

the value of equity = $444.13 - $112.60 = $331.53 million

price per stock = $331.53 million / 25 million = $13.26 per stock

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The twenty pieces of data that nielsen used to determine a solution to its employee turnover issue are classified as:_________
Zinaida [17]

We can actually deduce that the twenty pieces of data that Nielsen used to determine a solution to its employee turnover issue are classified as: HR Metrics.

<h3>What is HR Metric?</h3>

Human Resource metric is known as the HR Metric. It is a measurement that is usually used to determine the effectiveness of the initiatives of the HR.

The areas were the HR initiatives will make use of HR Metric.

  • Training
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  • Turnover
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We see here that the twenty pieces of data that Nielsen used to determine a solution to its employee turnover issue are classified as HR Metrics.

Learn more about Human Resource Metrics on brainly.com/question/15586049

#SPJ1

6 0
2 years ago
Expectancy theory implies that linking an increased amount of rewards to performance will increase motivation and performance. F
Tresset [83]

Cognitive evaluation theory would question the use of money as a motivator because external motivational tools may lower intrinsic motivation because people will start working to get the reward, NOT because they are intrinsically motivated or challenged.

4 0
3 years ago
Which employee had the highest earned commission? What specifically was their commission amount?
Xelga [282]

Commission simply means a form of variable-pay remuneration for services that are rendered or products sold.

<h3>What is commission?</h3>

Your information is incomplete. Therefore, an overview will be given. A commission is a payment that an employee makes based on a sale.

For example, when an employee sells a product for $500 and they get a 10% commission on all sales, then the employee will earn $50 on that sale.

Learn more about commissions on:

brainly.com/question/957886

8 0
2 years ago
Current liabilities are obligations that are reasonably expected to be paid from Existing Creation of Other Current Assets Curre
Alex73 [517]

Answer:

The answer is option C) Yes No

Explanation:

Current liabilities are obligations that are reasonably expected to be paid from Existing Creation of Other Current Assets and not current liabilities.

This is because, Current liabilities are short term liabilities due within a year. They include accounts payable, short term debt and overdraft. This means that payment can only be generated by current assets.

Current assets are also short term assets with a life span of on year. They include accounts receivable an cash.

Therefore, Yes, Current liabilities are obligations that are reasonably expected to be paid from Existing Creation of Other Current Assets.

And No, Current liabilities are obligations that are not expected to be paid from Existing Creation of Other Current Liabilities.

5 0
3 years ago
Failing to respond to the needs of internal customers will diminish the confidence these users have in purchasing, and they may
Solnce55 [7]

Answer:

The correct answer is Maverick buying.

Explanation:

Maverick, is a wayward, a dissident, a rebel, someone who refuses to abide by the rules or resists joining a group. The term originates from Samuel A. Maverick (1803-1870), a Texas rancher, who refused to mark his cattle.

The "maverick buying", refers to purchases out of contract or channels established by an organization. For example, the Corporate Supply department negotiates a competitive price for certain particular models of laptops with a distributor. Days later, someone from the Human Resources department requests the purchase of a much more expensive model, for which a discount has not been negotiated.

Another example: traveling in an airline and staying in a hotel other than those with which the company has signed agreements.

The impact of bypassing the preferred purchasing channels and systems can vary from operational inefficiency, to missing out on the advantages of corporate contract negotiation, large fines and even jail time.

4 0
3 years ago
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