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Nutka1998 [239]
3 years ago
8

A company is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. Ho

wever, the FCF is expected to be $85.00 million in Year 5, and the FCF growth rate is expected to be a constant 6.5% beyond that point. The weighted average cost of capital is 12.0%. What is the horizon (or continuing) value (in millions) at t
Business
1 answer:
Bumek [7]3 years ago
7 0

Answer:

Value of company = $982.16

Explanation:

The free cash flow is the cash generated by a company that is not retained and reinvested. It is the cash flow available to all providers of capital . It is available to pay dividend or finance other project

The value of the company would be the present value of its free cash flow discounted at the weighted average cost of capital.

Value of company )year 4= 85/(0.12-0.065) = 1,545.45

Value of company (in year 0) = 1,545.45× 1.12^(-4)= 982.16

Value of company = $982.16 millions

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Economic integration is a process of eliminating restrictions on international trade, payments, and factor mobility. Economic in
valina [46]

Answer:

True

Explanation:

Economic integration refers to an agreement between countries to eliminate trade barriers and coordinate their monetary policies. The integration allows to reduce trade costs, more employment opportunities as there is mobility and market expansion. Usually, this is considered a regional trading arrangement as it tends to be between neighboring countries. An example of a economic integration is the European Union. According to  this, the statement is true.

4 0
3 years ago
Organizations and activities that are close to the end customer in a supply chain are said to be _______, while organizations an
Alik [6]

Answer:

a. downstream; upstream

Organizations and activities that are close to the end customer in a supply chain are said to be downstream activities, while organizations and activities that are close to the supplier in the supply chain are said to be upstream activities.

Explanation:

Upstream activities are those activities which bring information, raw materials to your organization in order to turn them into finished goods. Anything coming inside of your organization is simply termed as upstream portion of your entire supply chain.

Whereas, anything which is going out of your organization is defied as the downstream activities, which are mostly finished products. It is the mechanism which helps you reaching your goods to the final consumers in an efficient way. Both upstream and downstream activities are very much important for any organization's supply chain. If managed properly, it can proved you with a sustainable competitive advantage which will be very hard for the competitors to meet.

6 0
3 years ago
How do i make someones answer the brainliest
Aleksandr [31]
I don’t get what your saying

But could u give more explanation
4 0
3 years ago
Read 2 more answers
Suppose Ford Motor Company issues a five year bond with a face value of $5,000 that pays an annual coupon payment of $150.
blondinia [14]

Answer:

interest rate =  15%

value of the bond will decrease

Explanation:

given data

face value = $5,000

time = 5 year

annual coupon payment = $150

solution

we get here interest rate on the borrowed funds that will be as

interest rate = \frac{annual\ coupon}{face\ value/time}  × 100

put here value we get

interest rate =  \frac{150}{\frac{5000}{5} }  × 100

interest rate =  15%

and

when bond issued at interest rate =  3 %

but market interest rate 4%

so seller will reduce price of bond less than the face value

because we will look for atleast 4% payout when bond matures

so value of the bond will decrease

6 0
3 years ago
A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth.The
Tomtit [17]

Answer:

The correct answer is: neither the first nor the second would promote growth.

Explanation:

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth.The first is to increase barriers to trade.The second is to restrict foreign portfolio investment.Which of these policies would most economist think would promote growth

One of the main statistical indicators used to measure the economic evolution of a country is the Gross Domestic Product (GDP). In the macroeconomic analysis of any State, the interpretation of this value is essential to know the degree of economic development and its trends.

The weak growth of productivity in many advanced and emerging market economies after the international financial crisis is raising concerns about growth prospects. A new study indicates that reducing barriers to international trade and foreign direct investment (FDI) could stimulate productivity and output.

The entry of portfolio investment into the country is associated with the yield and risk differentials of the country abroad. This means that a change in the perception of country risk is not necessary. Rather, they need to change in relation to existing alternatives in other countries. Therefore, significant movements in this area do not necessarily reflect a change in the state of the country's economy, however, they can have important repercussions on the exchange rate and other fundamental variables of the financial markets.

7 0
3 years ago
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