The Tet offensive was considered to be one of the great debacles of foreign intelligence, wherein it yielded a military success however suffered a great political defeat. In addition, the military operation was considered to be one of the largest military offensive in the course of the Vietnam War.
Answer:
= $52.78 per share
Explanation:
<em>The value of a business can be determined using the free cash flow model. According to this model, the value of a firm is is the present value of its free cash flow discounted at the weigthed average cost of capital (WACC.)</em>
<em>The value of equity is the value of firm less value of other instruments (e.g debt and preferred stocks)</em>
<em>Value of equity = Value of the entire firm - Value of debt </em>
We can work out the the value per share using the steps below:
<em>Step 1</em>
<em>Calculate the total value of the firm</em>
Value of firm = 27.50/(0.1-0.07)
= $916.66 million
<em>Step 2</em>
<em>Calculate the value of equity</em>
<em>Value of equity = Value of the entire firm - Value of debt</em>
= $916.66 million - $125.0 million
=791.666 million
<em>Step 3</em>
<em>Calculate the value per share</em>
Value per share = Value of equity/ units of common stock
=$791.666 million/15 million units
= $52.78 per share
Answer:
Effect on income= $-117,500
Explanation:
Giving the following information:
Kawai Corporation, which makes and sells 85,000 radios annually, currently purchases the radio speakers it uses for $8.00 each.
Kawai estimates that the cost of materials and labor needed to make speakers would be a total of $6.50 for each speaker. Also, supervisory salaries, rent, and other manufacturing costs would be $170,000. Allocated facility-level costs would be $75,000.
Buy= 85000*8= $680,000
In house:
Production costs= 6.5*85,000 + 75,000= 627,500
Other fixed costs= 170,000
Total cost= $797,500
Effect on income= 680,000 - 797,500= $-117,500
