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zvonat [6]
3 years ago
10

Sallie's Sandwiches​Sallie's Sandwichesis financed using 20% debt at a cost of 8%. Sallie projects combined free cash flows and

interest tax savings of $2 million in Year 1, $4 million in Year 2, $5 million in Year 3, and $117 million in Year 4. (The Year 4 value includes the combinedhorizon values of FCF and tax shields.) All cash flows are expected to grow at a 3% constant rate after Year 4. Sallie'sbeta is 2.0, and its tax rate is 34%. The risk-free rate is 8%, and the market risk premium is 4%. Using the data for Sallie's Sandwiches andthe compressed adjusted present value model, what is the total value (in millions)? Group of answer choices$72.37 $73.99 $74.49 $75.81 $76.45 Quizlet
Business
1 answer:
JulijaS [17]3 years ago
8 0

Answer:

$76.45

Explanation:

Sallie Sandwiches used hybrid financing which means debt and equity both are used to finance business. The company's cost of financing will be;

Cost of debt : 8% + [ 2.0 * 4%] = 16%

Cost of financing : [0.2 * 8%] + [0.8 * 16%] = 14.4%

NPV discounted at 14.4% is $76.45

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Answer:

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Explanation:

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3 years ago
Discuss the notion of alienation as elaborated by Marx​
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Answer:

The alienation that Marx refers to comes into being through the relations of production found in capitalist society. ... The commodities that workers produce through their labor is not their own but ultimately belongs to another and is produced for another. Here alienation is manifested in the product that work produces.

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3 years ago
An independent firm that offers connections and Electronic Data Interchange (EDI) transaction forwarding services to buyers and
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Value Added Network -

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k0ka [10]

Answer:

No, Watching TV has an opportunity cost

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