Answer:
The answer is "Choice D".
Explanation:
Please find the numbering of the choices in the attached file.
In this question, when this forward price is too low in comparison to both the location cost of production, the dealer must also reduce their assets throughout the spot market and purchase it at the potential price. Its trader should reduce the asset, reinvest the owner-occupants profits on a risk-free basis, establish a long-term loan to buy the asset with one year.
Answer:
search qualities
Explanation:
this is the correct answer
You expect to find and increase knowledge of what really fits for you to do for the rest of your career life.
Answer:
The Intrinsic value is calculated by multiplying the Earnings per share by the P/E ratio.
1. The lowest P/E ratio is 21.37 so the intrinsic value is;
Intrinsic value = 2.1 * 21.37
= $44.88
2. Highest P/E ratio is 23.49
Intrinsic value = 2.1 * 23.49
= $49.33
3. The average P/E ratio is;
= (22.07 + 23.49 + 21.37)/3
= 22.31
Intrinsic value = 2.1 * 22.31
= $46.85
Net Present value = Present value of Cash inflows - Present value of Cash outflow is the method for evaluating capital investment proposals reduces the present value of cash outflows from the present value of cash inflows.
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project. Net Present value is the result of calculations used to find the current value of a future stream of payments.
Net Present value accounts for the time value of money and can be used to compare the rates of return of different projects, or to compare a projected rate of return with the hurdle rate required to approve an investment.
The time value of money is represented in the Net Present value formula by the discount rate, which might be a hurdle rate for a project based on a company's cost of capital. No matter how the discount rate is determined, a negative Net Present value shows the expected rate of return will fall short of it, meaning the project will not create value.
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