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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She had a reduction of funds which totaled 206.76. A reduction is a debit a credit is when you add funds. So, D is the answer for this one.
Answer:
a.Geographic and political barriers are irrelevant to the company's business decisions.
Explanation:
It has established its global operations and a good reputation as a global food manufacturer.
Answer:
54.55%
Explanation:
The purchasing price is $55
Price has increased to $85.
The monetary increase = $85 - $55 = $30
As a percentage , the increase will be
=$30/$55 x 100
=0.545454 x 100
=54.5454%
=54.55%
