Answer:
The stock price would be higher by $7.37
Explanation:
Free cash flow to equity = 195 million with a growth rate of 2% in perpetuity
Value of equity = Free cash flow to equity ÷ (Ce -g) = 195 million ÷ (13% - 2%)
= 190 ÷ 0.11 = $1,772,727,272.73 = $1,773 million
If growth rate is 3%, value of equity = 195 ÷ (13%-3%) = 195 ÷ 0.1 = $1,950 million
a. Value of stock = (1,773 + 15) million ÷ 22 = $81.27
b. Value of stock with 3% = 1,950 ÷ 22 = $88.64
Thus stock price would be higher by = b-a = $7.37
Answer: Global segmentation
Explanation:
The global segmentation is one of the type of process in which the consumers or users are get grouped on the basis of their similar needs and the requirements.
In the global segmentation process we categorized the or divide the various types of customers into the different types of groups according to their specific interest related to the products and the services in the market.
The following are some benefits of the global segmentation are as follows:
- Providing various types of market opportunities
- Better usage of the resources
- Profitability
Therefore, Global segmentation is the correct answer.
Answer:
Fixed costs are high, variable costs are low
Explanation:
The reason is that the fixed costs are high because these fixed costs are uncontrollable and their might not be an alternative which means we have to move with higher fixed costs. And this is because most of tasks in manufacturing are handled by the machines not humans. So the cost of maintenance, depreciation, etc are fixed costs which are uncontrollable.
Furthermore, the company has very small variable costs because the company enjoys economies of scales, fast paced manufacturing machines, etc. And this is controllable by investments in another more robust machinery.
Answer:
$926,073
Explanation:
Enterprise value=market capitalization+value of debt-cash
value of the firm=price-earnings ratio=11.8
earnings=net income
net income=profit margin*sales
net income=$697,000*6.8%=$47,396
11.8=market capitalization/$47,396
market capitalzation=11.8*$47,396=$559,272.80
enterprise value=$559,272.80+$408,000-$41,200=$ 926,072.80 (approx $926,073)
