Answer:
Kirk will require returns of 9.36% per annum to get their 10,000 dolllars in 9 years
Explanation:
We need to sovle for the annual rate which makes a future value of 10,000 out of 4,469 after 9 years:
Principal 4,469.00
time 9.00
Amount
rate 0.093617664 = 9.36%
Answer:
Find attached full question:
The correct option is D.$42.79
Explanation:
In order to determine the current price per share of the company now,we discount all future free cash flows to present value as well as the company's terminal value:
company's terminal is the value of the company after the considered timing horizon
terminal value=free cash in year three*(1+g)/r-g
free cash flow in year three is $40 million
g is the growth rate of free cash flow which is 7%
r is the WACC of 13%
terminal value=40*(1+7%)/(13%-7%)=$ 713.33 million
Present of the company=-$20/(1+13%)+$30/(1+13%)^2+$40/(1+13%)^3+$713.33/(1+13%)^3=$ 527.89 million
The company's value of equity=present worth-debt== 527.89-100=427.89 million
share price=value of equity/number of shares== 427.89/10=$42.79
Answer:
Answer is: ( ii ) and ( iv ) only.
Explanation:
In a perfectly competitive market , the process of entry and exit will end when the price equals minimum average total cost, resulting to zero economic profits at this point.
<em>Please note that the labeling of your options are not too clear, so pick the option that my answer correlates with. </em>
Answer:
The new rate of return is 15.4%
Explanation:
The reviewed estimate on the rate of return on the stock will be:
• Beforehand
• 14% = α + [4%*1] + [6%*.4]
α = 7.6%
• With the changes:
• 7.6% + [5%*1] + [7%*.4]
Now a new rate of return is 15.4%
Answer: The given statement is false.
Explanation:
Immigrants give a boost to the average wages of Americans by increasing the overall productivity and help in investment. Immigrant workers are more advanced in skill sets and knowledge which helps the native Americans to improve their productivity. This process has boosted the investment which in turn increased the demand for labor and increased the pressure on improving wages of labor.