If Lauryn's has a reported equity beta of 1.5, a debt-to-equity ratio of .3, and a tax rate of 21 percent.. The Free Cash Flow (FCF) of Lauryn's for the year is 20.45
FCF = (EBIT -Depreciation)× ( 1- Tax rate) + Depreciation - Capital expenditure - Working Capital investment = (45 -4.5 ) × ( 1 - 40%) + 4.5 - 4.25 -4.1 = 20.45
Beta Asset = Beta Equity /( 1 + (1-tax rate)×D/E) = 1.5/( 1 + ( 1-40%)× 0.3) = 1.2712
According To Capm WACC = Risk free rate + Betaasset × Market Risk Premium = 4% + 1.2712 × 12% = 19.2544%
Value of The firm = FCFF × ( 1+growth)/(Return - Growth) = 20.45 × 1.02/(19.2544% - 2%) = 120.89 million
- Free cash flow (FCF) is the money a business makes after subtracting the cash it must spend to run its business and maintain its capital assets. Or to put it another way, free cash flow is the money that remains after a business pays its operating expenses (OpEx) and capital expenditures (CapEx).
- A corporation may do whatever it wants with FCF, which is the money that is left over after paying for expenses like labor, rent, and taxes. A company's cash management will be aided by knowing how to compute and analyze free cash flow. Investors can improve their investment choices by using the FCF calculation to get insight into a company's financials.
Learn more about Free cash flow (FCF), here
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Answer:A. The lack of incentive voters have to become well-informed about candidates and issues because their vote is unlikely to affect the outcome of an election.
Explanation: Rational ignorance is a term used to describe the intentional decline or refusal by a person or group of persons to gain certain knowledge,mainly after considering the cost and benefits attached to gaining that knowledge.
When people choose not to learn a particular trade,subject etc after comparing the costs to the potential gains.
RATIONAL IGNORANCE IS ALSO CONCERNED WITH THE DECISION OF VOTERS WHEN MAKING CHOICE OF NOT PARTAKING IN AN ELECTION BECAUSE THEY BELIEVE THAT THEIR VOTES DO NOT COUNT OR HAVE EFFECTS ON THE FINAL OUTCOMES ETC.
He should try to maintain a high GPA because 9th grade is an important year
The Layout would be the answer to this question
Answer:
Stimulus generalization
Explanation:
Stimulus generalization defines that it is the process of call up for a reason by giving responses. For example we call dog by using the bell so that dog can come for food.
Therefore according to the given situation, Many store brands use similar packaging and labeling to the more expensive big company. The idea is that in customers, the look-alike kit would evoke a similar reaction that allows them to buy the affordable store brand so this is an example of Stimulus generalization
