Answer:
Firm's value of operations = $2,100 million
Explanation:
Using the growth model we have
Free cash flow at t=1 = $150 million + 5% expected growth = $157.5 million
Weighted average cost of capital = 12.5%
Therefore with growth rate = 5%
We have present value of firm's operations =
= ![\frac{157.5 million}{0.075} = $2,100 million](https://tex.z-dn.net/?f=%5Cfrac%7B157.5%20million%7D%7B0.075%7D%20%3D%20%242%2C100%20million)
Firm's value of operations = $2,100 million
Answer:
The answer is a Portfolio consisting of about three randomly selected stocks from a different sectors.
Explanation:
Portfolio risk is a chance that the combination of assets or units, within the investments that an individual owns, fail to meet financial objectives. Portfolio risk will decline if more stocks that are negatively correlated with other stocks are added to the portfolio, and because of the effective diversification, the portfolio's risk is likely to be smaller than the average of all stocks's standard deviation.
Answer: "A calculation of financial ratios and an evaluation of the comparative trends in the firm’s financial position and performance over a certain time period" would be best to include in a financial statement analysis because The calculation of these ratios allow us to analyze in detail the financial and economic situation of the company. In other words, the company's ability to meet its obligations and generate profits.
Analyzing these ratios in a comparative way between 2 periods allows us to see the trend of the ratios and from this we can estimate where the company is heading.
Answer:
correct answer is B
Explanation:
Mike does not budget, because budgeting means actively spending less to save for something else, but mike spends all his money on comics.
Robert is budgeting so he can buy a new basketball hoop
Jeremy is thinking through a complex question that has nothing to do with money spending or saving
Alan doesn't make sense because the only money you get by banking your money is annual interest but i know he isn't budgeting.
Answer:
No: the equilibrium point in a competitive market is the point of optimal market efficiency.
Explanation:
NO, the monopoly can never be more efficient than the perfectly competitive market because the competitive market is the point of optimal market efficiency and the monopoly will produce at the point where the MR and the MC are equal. here the market have excess capacity and a dead weight loss.