Answer:
b. Feedforward control
Explanation:
Feedforward control is a form of proactive control that includes measures that pertain to prevent certain consequences and safety hazards. This company wants to prevent their employees form getting injured from particles during manufacturing. So, this is an example of feedforward control, that aims to prevent, not react.
Answer:
$710.84 million
Explanation:
Net income = $35 million
Depreciation = $20 million
Capital expenditures = $7 million
Tax rate = 21%
D/E ratio = 0.4
Growth rate = 6%
Equity beta = 1.25
So, firm's asset beta = Equity beta/(1 + D/E*(1-T))
= 1.25/(1 + 0.4*(1-0.21))
= 0.94985
So, Free Cash Flow to the Firm= NI + Depreciation - Capital expenditures
= 35 + 20 - 7
= $48 million
Risk free rate Rf = 5%
Market risk premium = 7.5%
So, firm cost of capital using CAPM is Rf + Beta*(MRP)
Kc = 5 + 0.94985*7.5
Kc = 12.1239
So, Firms value using constant dividend growth model:
FV = FCF*(1+g)/(Kc-g)
FV = 48*1.06 / 0.121239-0.06
FV = 50.88 / 0.061239
FV = 830.8430901876255
FV = $830.84 million
Debt = $120 million
Market Value of equity = FV - Debt
Market Value of equity = $830.84 million - $120 million
Market Value of equity = $710.84 million
It is (b) city dwellers compared to rural peasants, had more material wealth but lived more uncertain lives.
Answer:
D) 4.04 percent
Explanation:
Spot rate is £1 = $1.5701
Forward exchange rate after 1 year is £1 = $1.5574
Risk free rate in US = 3.2 %
Forward rate = {Spot rate * (1 + risk free rate in US)} / (1 + risk free rate in UK)
1.5574 = {1.5701 * ( 1 + 0.032)} / (1 + risk free rate in UK)
(1 + risk free rate in UK) = (1.5701 * 1.032) / 1.5574
Risk free rate in UK = (1.62034 / 1.5574) - 1
Risk free rate in UK = 1.0404 - 1
Risk free rate in UK = 0.0404
Risk free rate in UK = 4.04%
Answer:
B
Explanation:
This has nothing to do with your financial history, while every other option does.