Answer:
$2,033
Explanation:
The computation of the terminal value at the end of the year 2 is shown below:
= {Free cash flow of the firm × (1 + growth rate) × (1 + growth rate) + (1+ growth rate)} ÷ (WACC - growth rate)
= {($80 million × (1 + 0.10) × (1 + 0.10) × (1 + 0.05)} ÷ (10% - 5)
= $101.64 ÷ 0.05
= $2,033
We simply applied the above formula so that the Terminal value could arrive
Answer:
Cash for $475 and Credit Card Expense for $25
Explanation:
Cash for $475 and Credit Card Expense for $25
Answer:
20%
Explanation:
if the advertising elasticity = 0.25 and you want to increase the quantity demanded by 5%, you will need to increase advertisement by = 5 / 0.25 = 20%
The advertising elasticity measures how much does a change in advertising changes the quantity demanded of a product or service.
If the supply of cell phones increases, the price of cell phones will reduce and the quantity of cell phones would increase.
<h3>What is the impact of an increase in the price of cell phones?</h3>
When the market of a good is in equilibrium and the supply for a good increases, the supply curve would shift to the right while the demand curve remains unchanged.
At the new equilibrium of the supply curve and the demand curve, price would be lower and quantity would be higher.
To learn more about an increase in supply, please check: brainly.com/question/14727864
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