Answer:
Value of the firm $ 14550000.
Value of the firm's equity $ 11550000.
Explanation:
Cash flow from operations = $ 1785000 (1700000 + 5 % of 1700000).
Depreciation = $ 241500. (230000 + 5 % of 230000).
Taxable income = $ 1543500 (1785000 - 241500)
Net income (after tax) = 1543500 - 30 % of 1543500 = $ 1080450.
Cash flow from operations (after tax) = 1080450 + 241500 (Depreciation, being non cash expense). = $ 1321950.
Free cash flow available = Cash flow from operations (after tax) - Income from investment.
= 1321950 - (1700000 * 17 % * 1.05)
= 1321950 - 303450.
= $ 1018500.
Value of the firm = Free cash flow available / (Capitalization rate - Growth rate)
= 1018500 / (0.12 - 0.05)
= 1018500 / 0.07
= $ 14550000.
Value of the firm's equity = Total value of firm - Value of debt of firm
= 14550000 - 3000000
= $ 11550000.
In economic terms, marginal is another word for: C. additional
Let's say that you need to consume 2 hamburgers to be fully satisfied. The marginal cost refer to the additional cost that you need to pay to acquire the second hamburgers
hope this helps
D. Because of higher broadband speeds and the ability to provide a better online shopping experience, online merchants have gained share from brick and mortar incumbents.
Answer: Option (A) is correct.
Explanation:
Other things remains constant, a increase in the balanced budget means that the amount by which government spending increases is offset by the identical increase in net taxes.
Increase in government spending will lead to increase the aggregate demand in the economy whereas increase in the net taxes will lead to fall in aggregate demand.
Here both increases by the same amount, but still there is an increase in the aggregate demand but the amount by which aggregate demand increases is less than the amount by which government spending increases.
This is because of the impact of tax and government spending multiplier. Tax multiplier is smaller than the government spending multiplier. All of the increase in government spending will going towards increase the aggregate demand but in taxes a portion of consumption decreased with decrease in the disposable income.
The case talks about the ethical dilemm in relation
<h3>What is
ethical dilemm?</h3>
In philosophy, ethical dilemmas, also known as ethical paradoxes or moral dilemmas, are situations in which an agent is confronted with two competing moral requirements, neither of which takes precedence over the other. A similar definition characterizes ethical quandaries as situations in which every available option is incorrect.
Ethical quandaries are classified based on the types of obligations that are in conflict with one another. According to Rushworth Kidder, four types of conflict can be identified: "truth versus loyalty, individual versus community, short term versus long term, and justice versus virtue."
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