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zhenek [66]
3 years ago
10

When Krystal Ginger graduates from culinary school she dreams of opening her own Asian fusion restaurant. Her other passion is s

kiing in Colorado, where she schedules four or five trips each year. As her small business advisor, you believe it necessary to provide her with information that will help her make good business decisions. Which of the following would be helpful for Krystal to know?
A. Restaurants are relatively easy businesses to start, but are labor intensive and also have the greatest failure rate.

B. Restaurants are not the easiest type of business to start, but once you get it going, you will have plenty of time for skiing.

C. Most restaurant owners get rich if they open their own, independent restaurant as opposed to starting a franchised operation.

D. Franchised operations will take less time on the part of the owner than a regular independently owned operation. If she opens a franchise, she will have more time for creativity in the business, and more time for skiing too.
Business
1 answer:
Serggg [28]3 years ago
8 0

Answer:

The answer is A.) Restaurants are relatively easy businesses to start, but are labor intensive and also have the greatest failure rate.

Explanation:

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Year 1 2 3 4 5 Free Cash Flow $22 million $24 million $29 million $32 million $35 million XYZ Industries is expected to generate
Elena L [17]

Answer:

The expected current share price is $7.66

Explanation:

According to the given data, we have the following:

FCF1 = $22 million

FCF2 = $24 million

FCF3 = $29 million

FCF4 = $32 million

FCF5 = $35 million

Growth Rate, g = 2%

WACC = 7%

In order to calculate the expected current share price we have to calculate first the following:

First, we have to calculate the FCF6 as follows:

FCF6 = FCF5 * (1 + g)

FCF6 = $35 million * 1.02

FCF6 = $35.70 million

Next, we have to calculate the Horizon Value of Firm as follows:

Horizon Value of Firm = FCF6 / (WACC - g)

Horizon Value of Firm = $35.70 million / (0.07 - 0.02)

Horizon Value of Firm = $714 million

Next, we have to calculate the Current Value of Firm as follows:

20,560,747+20,962,529+23,672,638+24,412,646+24,954,516+509,072,132

Current Value of Firm = $22 million / 1.07 + $24 million / 1.07^2 + $29 million / 1.07^3 + $32 million / 1.07^4 + $35 million / 1.07^5 + $714 million / 1.07^5

Current Value of Firm = $623.63 million

Next, we have to calculate the Value of Equity as follows:

Value of Equity = Current Value of Firm - Value of Debt + Value of Cash

Value of Equity = $623.63 million - $40.00 million + $14.00 million

Value of Equity = $597.63 million

Therefore, the Price per share = Value of Equity / Number of shares outstanding

Price per share = $597.63 million / 78 million

Price per share = $7.66

The expected current share price is $7.66

5 0
3 years ago
Read 2 more answers
How much interest you pay depends on_________
Damm [24]

Answer:

The Interest Rate and how much you owe.

Explanation:

If you have a rate of 10% a month

and you owe $100, the next month you owe $110

or if you owe $50, then next month you owe $55

6 0
3 years ago
_________________ is defined as an individual's opinions or experiences about a particular topic
Korolek [52]
A public opinion is defined as an individual's opinions or experiences about a particular topic.
4 0
3 years ago
The government supports the broadcasting and entertainment industry in canada in order to __________.
Juliette [100K]

the answer is: B. Promote a distinct Canadian culture and avoid saturation by U S programming

The entertainment industry in Canada surpass 15 Billion dollars in Gross Domestic Product each year. If the Canadian government does not support it, the huge chunk of Canadian economy would be taken by companies form united states (which is the most dominant force in entertainment industry globally).

Beside the economic benefit, When programs from Canadian entertainment is watched by people form other country, Canada could promote its culture and improve its relationship with people from different cultures.

9 0
3 years ago
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Where there is a lack of good performance measures, it is difficult to motivate managers by using
Anna11 [10]

Answer:

Option "A" is the correct answer.

Performance-based incentive.

Explanation:

Performance-based incentives also include financial and pre-monetary incentives to encourage well being-related actions or accomplishment of performance goals. ... To change those health-related habits, they are transmitted electronically to families or patients.

  • Participants are involved in incentive programs. Studies have found that incentive programs can boost job interest.
6 0
3 years ago
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