Answer:
Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 10%. The company's weighted average cost of capital is 18%. What is the terminal, or horizon, value of operations
Terminal value = $1,783,333.33
Explanation:
Terminal value = FCF3/(WACC � g2)
FCF3 = FCF2 x 1.07 = $100,000 x 1.07 ? $107,000
= $107,000/(.13 - .07)
Terminal value = $1,783,333.33
Answer:
$4,800
Explanation:
The computation of additional annual cash inflow is shown below:-
Saving in Annual Maintenance Cost by new machine = $15,000 - $6,000
= $9,000
Net savings on Maintenance = $9,000 × (1 - 0.4)
= $5,400
Decrease in Depreciation due to purchase of New machinery
= ($60,000 ÷ 10) - ($45,000 - 10)
= $6,000 - $4,500
= $1500
Tax to be paid due to decrease in Depreciation = Decrease in Depreciation due to purchase of New machinery × Tax rate
= $1,500 × 0.4
= $600
Net Annual cash Inflow due to new machinery = Net savings on Maintenance - Tax to be paid due to decrease in Depreciation
= $5,400 - $600
= $4,800
So, for computing the additional annual cash inflow we simply applied the above formula.
Answer:
It is important to stand up to bullying for a number of reasons. You may think it's better to not get involved but staying neutral always helps the oppressor. You should not let someone suffer and watch as someone else puts them in physical or psychological pain every day, it is good to stand up for what is right. You may even make a life-long best friend. So stand up for what's right and don't stay neutral so the oppressor can continue to victimize someone.
Explanation:
Hope this helps! :)
Answer:
Finland has a free-market economy
Explanation:
The fact that would most support this conclusion is that Finland has a free-market economy. A free market is an economic system characterized by a spontaneous and decentralized order of arrangements by individuals allowing them to make their own economic decisions based on supply and demand in that current time with little or no government control in the matter. This is an economic system that can only work in a developed economic nation.
Actual spending. It is important to compare the budget, which is expected spending, to actual spending to make adjustments and catch potential problems or figure out what to do extra money.
