Answer:
The stock's current intrinsic price is c. $18.29
Explanation:
Hi, by definition, the intrinsic value of a stock is defined by the present value of its future free cash flows, in our case, for the next year it will be $0.75 million and it will grow at a 6.4% rate, every year, "forever".
SInce there are $2 million in short term investment and $2 million in debt, both amounts cancel out each other therefore, all we have to do is to bring to present value the future free cash flows, as follows.
So the value of all the outstanding share of the company is:
Since there are 1 million shares, each one is worth $18,292,683/1,000,000= $18.29. So the answer is c.
Best of luck.
Answer:
Total variable cost if 4 units were produced
= $33.75 x 4 units = $135
Total fixed cost = Total cost - Total variable cost
Total fixed cost = $175 -$135
Total fixed cost = $40
Average fixed cost = Total fixed cost/No of units
Average fixed cost = $40/10 units
Average fixed cost = $4
The correct answer is B
Explanation:
In this case, we need to calculate the total variable cost on the ground that 4 units were produced. Then, we will determine the total fixed cost by deducting the total variable cost from total cost. Finally, we will divide the total fixed cost by 10 units in order to obtain the average fixed cost.
This process of evaluating the companies for acquisition is best known as A. Due diligence.
<h3>What is corporate acquisition?</h3>
Corporate acquisition refers to the corporate act of taking over another company for business expansion and other strategic intents.
To make a successful acquisition, the acquiring company carries out due diligence by evaluating potential acquisition candidates.
<h3>Question Completion with Answer Options:</h3>
A. Due diligence
B. Market intelligence
C. Consultation
D. Market evaluation
Thus, this process of evaluating the companies for acquisition is best known as A. Due diligence.
Learn more about due diligence in acquisition at brainly.com/question/13806280
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The answer is c, the type of renter Insurance must buy
Answer:
True
Explanation:
Firm A is operating at full capacity, if its sales keep increasing, then t will need to invest to expand its production capacity. Since firm B is operating below full capacity level, if its sales keep increasing it will have some spare production capacity it can use before operating at full capacity.
Therefore firm A will need to invest in an expansion of its production capacity while firm B can keep operating without new investments.
