Answer:
The value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places
Explanation:
We first need to calculate the required rate of return for this firm that will be used as the discount rate in the valuation of the firm using the discounted cash flow methods.
Using the CAPM we can calculate the required rate of return as,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on Market
So,
r = 0.04 + 0.4 * (0.11 - 0.04)
r = 0.068 or 6.8%
As the cash flows the firm can generate are expected to remain constant through out and they are generated after equal interval of time, this can be treated as a perpetuity.
The present value of a perpetuity is calculated as follows,
Present Value of perpetuity = Cash Flow / r
Present value of perpetuity = 10000 / 0.068
Present value of perpetuity = $147058.8235
So, the value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places
Answer:
D
Explanation:
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Answer:
17%
Explanation:
Purchase price of bond = $921.77
Years investment held = n = 7
Coupon rate = C = 15%
Frequency of payment = m = 2
Annual coupon = $1,000 × (0.15/2) = $75.00
Realized Yield = i
Selling price of bond = PB = $961.22
The realized rate of return is approximately 16.6 percent. Using a financial calculator provided an exact yield of 16.625 percent.
Answer:
The correct answer is A. the leader moves first, and the follower chooses its output in the second stage of the game.
Explanation:
The Stackelberg duopoly chant, also known as a Pinus model outside of the Stackelberg, is a game. In a Pinus model based on the imperfect he is not performing in concert. 1934 was developed by Peter Stackelberg in his "Greek and Roman Market Equilibrium" (Market and Cruciferse). It represents a point of curvature in the study of market structures, especially in what was reported to the infection of the duopolies, BECAUSE a tail is a model that is based on different initial hypotheses, conclusions and samples that are different from those of the models of the duopolies. incisors oh and like Cournot and Bertrand.
Theon'a games in A Stackelberg's sequential duopoly game are (without simultaneous operation of a Cournot Difference model). In this model, two existing companies demand that they are subject to the production of homogeneous goods and according to costs. One of the company: The Leader, perhaps with you, which is a sign of a greater Acquaintance DUE: it is you, who, by virtue of greater virtue, are better than the Quantity positioned to Decide First how much, bar and offer. The other Company, LA Followers: After the Company they observed Plan of the First, Quantity That will choose will offer Q2. TO FIND THE GAME WE HAVE TO GET BACK FROM THE STUDY OF THE SEASONS, the balanced use of the Nash, as a game in any sequential.
