Answer:
can u show the case study
Answer:
Option (A) is correct
Explanation:
Given that,
Free cash flow in Year 3, FCF3 = $40 million
FCF to grow at a constant rate, g = 5%
Weighted average cost of capital, WACC = 10%
Cost of equity = 15%
Therefore,
Horizon Value at year, t = 3:
= $ 840
Answer:
The answer about A static budget would be
Explanation:
A static budget is a type of budget that incorporates anticipated values on inputs and products that are conceived before the period in question begins. When compared to the actual results that are received after the fact, the static budget figures are often very different from the actual results.
The static budget is intended to be fixed and unchanged throughout the period, regardless of fluctuations that may affect the results.
For example, under a static budget a company would establish an anticipated expense, say $ 30,000 for a marketing campaign, for the duration of the period. It is then up to the managers to adhere to that budget, regardless of how the cost of generating that campaign really stays during the period.
This type of budgeting is limited by the ability of an organization to accurately forecast what its needs are, how much it will spend to meet them and what its operating income will be during the period. Static budgets can be more effective for organizations that have highly predictable sales and costs, and for shorter periods of time.
For example, if a company sees the same costs in materials, profits, labor, advertising and production month after month to maintain its operations and there is no expectation of change, a static budget may be adequate for its needs.
Answer:
$3
Explanation:
SBC Corp
($million)
FV in excess of book value $12
×
Share of ownership 25%
Additional depreciation in total $3
Therefore the total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is: $3
Answer:
The answer is letter "C": Producer surplus and consumer surplus will increase because the market becomes more efficient.
Explanation:
Named after English economist Arthur C. Pigou (1877-1959), the Pigovian Tax or corrective tax is a fine imposed against taxpayers for being part of activities that generate negative side effects. According to Pigou, these externalities play a negative role in the market to reach equilibrium.
It is true that the corrective tax encourages market efficiency but it doesn't imply the tax will lead to producer or consumer surplus, since those are actually influenced by basic supply and demand laws, making option "C" a false statement.
