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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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Why are adjustments made to the accounting records at the end of the period? (You may select more than one answer. Single click
zavuch27 [327]

Answer:

To ensure assets and liabilities are reported at appropriate amounts.

To ensure the related revenues and expenses are reported in the proper period.

Explanation:

Adjusting entries at the end of the period are basically made, to comply with the requirements of the accrual principal.

Under accrual principal the financial statements represent the true and fair view of the transactions and conditions of the company.

It basically records all the revenues and expenses at the time when they are incurred and not at the time when they are paid in cash, or cash is received.

As and when the transaction incurs, or to the period it relates it shall be disclosed.

Therefore, each balance sheet item is disclosed and reported at the appropriate amount. And the all the revenues and expenses related to the period are provided for.

4 0
4 years ago
If there is an even number of data, how is the median found?
pishuonlain [190]

Answer:

the average of two middle numbers

Explanation:

the median is the number in the middle of an arranged from smallest to largest number of a set of numbers

when you have an even number of data there is no 1 number in the middle so you take the average of the 2 middle numbers

4 0
3 years ago
A small company estimating its photocopying expenses finds that the mean number of copies made per day for the past 12 months is
IRINA_888 [86]

Answer:

The answer is: D) On average, the number of copies made each day was about 24 copies per day away from the mean, 258.

Explanation:

Mean: to calculate the mean of an statistical sample, you add all the data points and then divide by the total number of points, in other words is the average value.

Standard deviation: measures how spread out the values are from the sample's mean. The larger the standard deviation, the more spread out the values.

5 0
4 years ago
Mr. Alvarez's simple interest savings account currently has a balance of $12,500. He earns 6% Interest annually. Calculate his b
nata0808 [166]

Answer:

A $13,250.00

Explanation:

The formula for calculating balance at the end of a period using simple interest is as below.

A = P(1+rt)

A =  final amount

 P=  principal amount which is $12500

 r=  interest rate 6% or 0.06

t =  time which is 1 year

A = $12,500(1+0.06 x 1)

A = $12500 x1.06 x 1

=$12500 x 1.06

=$13,250

4 0
3 years ago
In a business message, the function of a call to action is to
kvv77 [185]

The function of a call to action is to represent what actually you want the audience to do.

The following information related to the call to action is:

  • It is the portion of the message that informs the audience what exactly they have done.
  • In the case when it should be written correctly so it should be feel inspired for doing it.

Therefore, the other options are correct

Thus, we can conclude that the function of a call to action is to represent what actually you want the audience to do.

Learn more about the message here: brainly.com/question/7723255

5 0
3 years ago
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