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Yuri [45]
2 years ago
9

Daimler AG agreed to sell 30 trucks to Romania in exchange for 150 Romanian-made Jeeps, which is an example of

Business
1 answer:
Effectus [21]2 years ago
8 0

Daimler AG agreeing to sell 30 trucks to Romania in exchange for 150 Romanian-made Jeeps, is an example of countertrade

<h3>What is Countertrade?</h3>

Countertrade is the means by which good and services is being paid for, with other goods or services, instead of with money.

Examples of countertrade include:

  • Barter
  • Counter purchase
  • Offsets

From the question, since Daimler AG agreed to sell 30 trucks to Romania in exchange for 150 Romanian-made Jeeps, hence countertrade has occurred.

Learn more countertrade on brainly.com/question/14659049

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D. Product and Promotion

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Golden Eye Co., a hi-tech satellite company, has asked you to value the company for possible cross-listing in the U.S. The compa
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Answer:

Explanation:

Let's first determine the free cash flow of the firm

Particulars                            Years

                          1                         2                   3

EBIT                  540                   680                750

<u>Tax at 36%    (0.36*540)       (0.36*680)        (0.36*750)    </u>

Less:               345.6                  435.2            480

Net Capital -

Spending            150                   170                 190

<u>Change in NWC    70                    75                  80      </u>

Less:                    125.6              190.2                210

The terminal value at the end of T =(3  years) is:

= \dfrac{Free \ cash \ flow}{unlevered \ cost - expected \ growth  \ rate}

= \dfrac{250}{0.1643-0.04}

= \dfrac{250}{0.1243}

= 2011.26

Finally, the value of the firm can be computed as follows:

Years                  Free Cash Flow        PVIF           PV

1                          125.6                        0.6589        107.88

2                         190.2                        0.7377         140.31

3                          210                           0.6336       133.06

<u>Terminal Value  2011.26                    0.6336        1294.33     </u>

<u>Value of the firm   ⇒                                               $1655.58</u>

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Answer:

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