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Stells [14]
3 years ago
6

One of the technical evaluators on a multi-million dollar source selection just told you that her husband was just offered a job

with one of the competing contractors. the job offer was unsolicited, tripled his current salary, and was contingent on the company getting the contract award. which administrative remedy should you pursue against this contractor?
Business
1 answer:
ratelena [41]3 years ago
3 0

Answer:

The correct administrative remedy against such a contractor is to have them suspended.

Explanation:

The role of a technical evaluator is sensitive as it means that he or she would be privy to almost if not all information that has to do with the contract.

In the information provided, the technical evaluator's husband was offered a job at a company competing or bidding for a multi-million dollar contract she was also evaluating.

Their husband didn't ask for the job. They offered it so that they might gain information to their advantage.

The action of this contractor can be classified as fraudulent. One of the administrative actions that can be taken against such is to have them suspended with a threat to have their license permanently revoked if they should make a similar attempt again.

Cheers

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AleksandrR [38]

Answer:

Value of the company is $140.70

Explanation:

We need first of all turn the equity beta from an unlevered to a levered beta with the below formula:

BU = BL / [1 + ((1 - Tax Rate) x Debt/Equity)]

BL=BU*[1 + ((1 - Tax Rate) x Debt/Equity)]

BU is levered beta

BL is the levered beta which is unknown

tax rate is 30% or 0.3

debt/equity =0.4

BU is 1.7

BL=1.7*[1 + ((1 - 0.3) x 0.4)

BL=1.7*(1+(0.7*0.4)

BL=1.7*(1+0.28)

BL=1.7*1.28

BL=2.176

Cost of equity=Rf+beta*market risk premium

Rf is the risk free rate of 6%

market risk premium is 11%

cost of equity=6%+2.176*11%

cost of equity=6%+23.94%

cost of equity =29.94%

In valuing the company the stock price formula below can be adapted

stock price=Do*(1+g)/(r-g)

Do is the dividend but can be replaced with a proxy free cash flow,since dividend per share is meant to compute price of one share,but FCF is to calculate the value of the entire company.

The free cash flow is computed below

FCF=EBIT*(1-t)+depreciation and amortization-capital expenditure-net increase in working capital

FCF=$56*(1-0.3)+$5.6-$5.3-$2.7

FCF=$36.8 million

g is the growth rate of FCF at 3%

r is the cost of equity of 29.94%

value of the company=$36.80*(1+3%)/(29.94%-3%)

value of the company=$36.80*1.03/0.2694

                                     =$140.70

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Explanation:

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