The goal of Goal Seek is to determine the growth rate of Nishi Corporation’s common stock. Specifically, it is used to find the growth rate that matches the required rate of return of 10.89%.
To do this, we must first enter the stock’s current price of $15.62 per share and its last dividend of $0.79. We then set the desired rate of return at 10.89%, and set the stock’s growth rate as the variable.
By running Goal Seek, we are able to find the growth rate that produces the target rate of 10.89%, which is approximately 7.68%. This means that Nishi Corporation’s common stock is projected to grow at a rate of 7.68% for the foreseeable future.
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antitrust laws were created to give government the power to group of answer choices block certain mergers and break up large firms into smaller ones. block cartels, and break up regulatory capture. force the firm to sell off the profitable parts of its operation. block certain mergers that are determined to be uncompetitive.
Antitrust laws were created to give government the power to a. block certain mergers and break up large firms into smaller ones.
In order to provide the government the authority to prevent some mergers that are deemed to be anticompetitive, antitrust laws were developed. The primary objective of these laws is to encourage competition and prevent the formation of monopolies or oligopolies. The government can utilise its antitrust authority to prevent mergers or purchases that would give one business an excessive amount of market power and lessen competition.
For the sake of fostering competition and preventing anti-competitive behavior, the government may also dismantle current monopolies or oligopolies. Antitrust laws can also be used to forbid businesses from engaging in anti-competitive behaviours such as price fixing, market allocation, and bid rigging.
Complete Question:
Antitrust laws were created to give government the power to
a. block certain mergers and break up large firms into smaller ones.
b. block cartels, and break up regulatory capture.
c. force the firm to sell off the profitable parts of its operation.
d. block certain mergers that are determined to be uncompetitive.
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The FI Corporation's dividends per share are expected to grow indefinitely by 5% per year.
a. If this year’s year-end dividend is $6 and the market capitalization rate is 8% per year, what must the current stock price be according to the DDM? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Current stock price $
b. If the expected earnings per share are $12, what is the implied value of the ROE on future investment opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Value of ROE %
c. How much is the market paying per share for growth opportunities (that is, for an ROE on future investments that exceeds the market capitalization rate)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Amount per share $
The current stock price to be $76.92.
The Dividend Discount Model (DDM) is an effective way of valuing a company's stock. By applying the DDM, we can calculate the current stock price given the dividend per share, the market capitalization rate, and the expected earnings per share.
In this example, the current dividend per share is $6, while the expected growth rate is 5% per year, and the market capitalization rate is 8% per year. Using these inputs, we can calculate the current stock price to be $76.92.
We can also calculate the implied value of the ROE on future investment opportunities to be 8.89%. This means that the market is paying $11.92 per share for growth opportunities, which is the difference between the market capitalization rate and the ROE on future investments. This helps investors identify the value of investing in a company and makes it easier to forecast expected returns.
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you would like to compare your firm's cost structure to that of your competitors. however, your competitors are much larger in size than your firm. which one of these would best enable you to compare costs across your industry? group of answer choices pro forma income statement statement of cash flows pro forma balance sheet common-size income statement common-size balance sheet
To best enable you to compare costs across your industry, you should use a "common-size income statement."
This financial statement expresses all income statement items as a percentage of sales, which makes it easier to compare your firm's cost structure to that of your larger competitors.
By analyzing the percentages of different expense categories, you can identify areas where your firm may be spending more or less than its competitors. This can help you to better understand your cost structure and make adjustments to improve your profitability and competitiveness in the industry.
By using the common-size income statement, you can compare your firm's expenses and profitability ratios to those of your competitors, helping you identify potential areas for improvement or opportunities for growth.
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which of the following is one of the sources of resistance to change? question 1 options: multifunctional teams sustainable status quo discontinuous innovation habit a dynamic organizational culture
A sustainable status quo is one of the sources of resistance to change in an organization. Thus, option d is correct.
Sustainable status refers to the wish to keep the current condition of matters, even if the suggested modification is sensed to be helpful. Individuals may resist shift because they are satisfied with the course items are, and fear that shift may disrupt the peace and predictability of their work conditions.
They may also fight differences if they sense that their goods or status within society may be intimidated. Different origins of resistance to alter possess worry of the unknown, lack of trust, practice, and the perception of developed workload or reduced job security.
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The complete question is-
which of the following is one of the sources of resistance to change?
options are:
a. a dynamic organizational culture
b. multifunctional teams
c. self-interest
d. sustainable status quo
e. discontinuous innovation
Assume the price level in Canada is CAD 16,600, the price level in France is EUR 11,750, and the spot exchange rate is EURCAD 1.35.
A.What is the internal purchasing power of 10,000 CAD? (4 decimal places)
B.What is the internal purchasing power of 10,000 EUR in France? (4 decimal places)
C.If absolute PPP holds, what should the exchange rate be? (4 decimal places)
D.According to Absolute PPP, is the EUR overvalued or undervalued?
E.How much de/appreciation of the EUR would be required to move the exchange rate to the PPP implied exchange rate?
A. The internal purchasing power of 10,000 CAD is 6,141.79 EUR (16,600 CAD / 1.35 EURCAD = 12,296.30 EUR; 12,296.30 EUR / 2 = 6,141.79 EUR)
B. The internal purchasing power of 10,000 EUR in France is 13,987.23 CAD (11,750 EUR * 1.35 EURCAD = 15,862.50 CAD; 15,862.50 CAD / 2 = 7,931.25 CAD; 7,931.25 CAD * 1.76 = 13,987.23 CAD)
C. If absolute PPP holds, the exchange rate should be 1 EURCAD = 1.5294 CAD (16,600 CAD / 11,750 EUR = 1.41; square root of 1.41 = 1.1892; 1.1892 * 1.35 EURCAD = 1.6039; 1 / 1.6039 = 0.6234; 1 EURCAD = 0.6234 CAD; 1 / 0.6234 = 1.5294 CAD)
D. According to Absolute PPP, the EUR is undervalued because the PPP implied exchange rate is higher than the actual exchange rate.
E. The EUR would need to appreciate by 25.84% ((1.5294 - 1.35) / 1.35 * 100 = 25.84%) to reach the PPP implied exchange rate of 1 EURCAD = 1.5294 CAD.
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C. The exchange rate should be 0.7060 EURCAD.
Absolute purchasing power parity (PPP) is a theory that suggests that the exchange rate between two currencies should equal the ratio of the price levels in the two countries. In this case, if absolute PPP holds, the exchange rate should be equal to the ratio of the price levels in France and Canada. Therefore, the PPP implied exchange rate would be: EURCAD = EUR/price level in France ÷ CAD/price level in Canada
EURCAD = 11,750 EUR / 16,600 CAD = 0.7060
So, the exchange rate should be 0.7060 EURCAD.
E. The EUR would need to appreciate by 47.48% against the CAD to reach the PPP implied exchange rate.
To move the exchange rate to the PPP implied exchange rate, the EUR would need to appreciate against the CAD. This means that the value of the EUR would need to increase relative to the CAD. The amount of appreciation required can be calculated as follows:
Percentage change in EUR = (PPP implied exchange rate - current exchange rate) / current exchange rate x 100%
Percentage change in EUR = (0.7060 - 1.35) / 1.35 x 100% = -47.48%
Therefore, the EUR would need to appreciate by 47.48% against the CAD to reach the PPP implied exchange rate. Alternatively, the CAD could depreciate by the same percentage against the EUR. However, it is important to note that the PPP theory is often not a perfect predictor of exchange rates in practice, as it assumes that goods are identical across countries and that there are no transaction costs or trade barriers.
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Suppose Intel stock has a beta of 1.72, whereas Boeing stock has a beta of 0.90. If the risk free interest rate is 4.9% and the expected return of the market portfolio is 12.9%, according to the CAPM a. What is the expected retum of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 55% Intel stock and 46% Boeing stock? d. What is the expected return of a portfolio that consists of 55% Intel stock and 45% Boeing stock? (There are two ways to solve this.) a. What is the expected retum of Intel stock? Inter's expected return is ______% (Round to one decimal place)
The expected return of Intel stock is 18.69%, the expected return of Boeing stock is 12.70%, the beta of the portfolio is 1.313, the expected return of the portfolio is 16.20%.
The CAPM (Capital Asset Pricing Model) is a widely used tool for estimating the expected return of an asset, given its risk level. The model takes into account the risk-free rate, the expected return of the market portfolio, and the asset's beta, which measures its sensitivity to market movements.
a. The expected return of Intel stock can be calculated as follows:
Expected return = Risk-free rate + Beta * (Expected market return - Risk-free rate)
Expected return = 4.9% + 1.72 * (12.9% - 4.9%)
Expected return = 4.9% + 1.72 * 8%
Expected return = 18.69%
b. Similarly, the expected return of Boeing stock can be calculated using the same formula:
Expected return = Risk-free rate + Beta * (Expected market return - Risk-free rate)
Expected return = 4.9% + 0.9 * (12.9% - 4.9%)
Expected return = 4.9% + 0.9 * 8%
Expected return = 12.70%
c. The beta of a portfolio that consists of 55% Intel stock and 46% Boeing stock can be calculated as follows:
Portfolio beta = Weight of Intel * Beta of Intel + Weight of Boeing * Beta of Boeing
Portfolio beta = 0.55 * 1.72 + 0.46 * 0.9
Portfolio beta = 1.313
d. Finally, the expected return of a portfolio that consists of 55% Intel stock and 45% Boeing stock can be calculated using either of the following two methods:
Expected return = Weight of Intel * Expected return of Intel + Weight of Boeing * Expected return of Boeing
Expected return = 0.55 * 18.69% + 0.45 * 12.70%
Expected return = 16.20%
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9. Profitability index Estimating the cash flow generated by $1 invested in a project The profitability index (PI) is a capital budgeting tool that is defined as the present value of a project's cash inflows divided by the absolute value of its initial cash outflow. Consider this case:Blue Moose Home Builders is considering investing $3,000,000 in a project that is expected to generate the following net cash flows: Year Cash Flow Year 1 $375,000Year 2 $400,000Year 3 $425,000 Year 4 $500,000 Blue Moose Home Builders uses a WACC of 7% when evaluating proposed capital budgeting projects. Based on these cash flows, determine this project's PI (rounded to four decimal places) a) 0.5475 b) 0.5237 c) 0.4761 d) 0.5713 Blue Moose Home Builders's decision to accept or reject this project is independent of its decisions on other projects Based on the project's PI, the firm should________ the project By comparison, the NPV of this project is______ Home Builders should _____On the basis of this evaluation criterion, Blue Moose in the project because the project_____ increase the firm's value A project with a negative NPV will have a PI that is______ when it has a PI of 1.0, it will have an NPV______
The project's PI is 0.5237, which is less than 1. Therefore, based on the PI criterion, Blue Moose Home Builders should reject the project. The NPV of this project is negative, which is also an indication that the project should be rejected.
The profitability index (PI) is a capital budgeting tool that evaluates the present value of a project's cash inflows relative to its initial cash outflow. A PI greater than 1 indicates that the project is profitable, while a PI less than 1 indicates that the project is not profitable.
In this case, the project's PI is 0.5237, which is less than 1. Therefore, based on the PI criterion, Blue Moose Home Builders should reject the project. The net present value (NPV) of a project, on the other hand, evaluates the difference between the present value of the project's cash inflows and the present value of its cash outflows.
A negative NPV indicates that the project is not profitable, while a positive NPV indicates that the project is profitable. In this case, the project's NPV is negative, which is another indication that the project should be rejected.
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Abby found a home to purchase for $380,000. The home appraised
at that same value. If her lender has agreed to provide a loan at
80% LTV, how much is her mortgage loan?
If Abby's lender has agreed to provide a loan at 80% LTV (loan-to-value), this means that they will provide a loan equal to 80% of the appraised value of the home.
In this case, the home appraised at $380,000, so 80% of that is:
0.8 x $380,000 = $304,000
Therefore, Abby's mortgage loan will be $304,000.
It's important to note that the appraised value of the home is used to determine the loan amount, not the purchase price.
This is because the lender wants to ensure that the value of the collateral (in this case, the home) is sufficient to cover the loan amount in case of default.
In other words, if Abby were to default on her mortgage payments and the lender needed to foreclose on the home, they would want to be able to sell the home for at least the amount of the outstanding loan.
In addition to the loan-to-value ratio, lenders also consider other factors such as credit score, income, and debt-to-income ratio when determining the loan amount and interest rate.
It's important for borrowers to shop around and compare offers from multiple lenders to find the best deal for their individual circumstances.
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A project has an initial cost of $50,000, expected net cash inflows of $10,000 per year for 9 years, and a cost of capital of 9%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent.
The project's NPV is $9,725.63. Since this is a positive value, the project is expected to generate a return that is greater than the cost of capital, and therefore, it would be considered a good investment.
To calculate the net present value (NPV) of the project, we need to calculate the present value of the expected net cash inflows and subtract the initial cost. We can do this using the formula:
NPV = -Initial cost + Present value of net cash inflows
First, we construct a timeline of the cash flows, which will help us to calculate the present value of the net cash inflows:
Year 0: -$50,000 (initial cost)
Year 1-9: $10,000 per year (net cash inflows)
To calculate the present value of the net cash inflows, we use the formula:
Present value = Cash flow / (1 + r)^n
where r is the cost of capital and n is the number of years.
For each year, we calculate the present value of the net cash inflow and sum them up:
PV of net cash inflows = $10,000 / (1 + 0.09)^1 + $10,000 / (1 + 0.09)^2 + ... + $10,000 / (1 + 0.09)^9
PV of net cash inflows = $59,725.63
Now we can calculate the NPV:
NPV = -$50,000 + $59,725.63
NPV = $9,725.63
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BOND AND STOCK VALUATION
EXCEL AND FINANCIAL CALCULATOR ONLYr. Samantha's Cleaning Company stock currently costs $42.50 per share, considering a required rate of return of 9.5%. Project the next annual dividend, considering you know that the dividend growth rate is 5% indefinitely
The next annual dividend for Samantha's Cleaning Company stock is projected to be $1.7955.
How to project the next annual dividend for Samantha's Cleaning Company stock?To project the next annual dividend for Samantha's Cleaning Company stock, we can use the Gordon Growth Model:
D1 = D0 x (1 + g)
Where:
D1 = Next annual dividend
D0 = Current annual dividend
g = Dividend growth rate
We are given that the current stock price is $42.50 and the required rate of return is 9.5%. We can use this information to calculate the current annual dividend as follows:
42.50 = D0 / (0.095 - 0.05)
D0 = $1.71
Now we can use the Gordon Growth Model to project the next annual dividend:
D1 = $1.71 x (1 + 0.05)
D1 = $1.7955
Therefore, the next annual dividend for Samantha's Cleaning Company stock is projected to be $1.7955.
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krista lee can purchase a service contract for all of her major appliances for $240 a year. if the appliances are expected to last for 11 years and she earns 8 percent on her savings, what would be the future value of the amount krista will pay for the service contract?
The amount is $6,678.65 that Krista will pay for the service agreement representing its future value.
We can apply the calculation for the future worth of an annuity to get the future value of the amount Krista will pay for the service contract:
FV = PMT x ((1 + r[tex])^{n - 1}[/tex]) ÷ r
where FV is the future value, PMT is the regular payment, r is the interest rate per period, and n is the number of periods.
In this case, PMT is $240 per year, r is 8% or 0.08 per year, and n is 11 years. When these values are added to the formula, we obtain:
FV = $240 x ((1 + 0.08[tex])^{11-1}[/tex]) ÷ 0.08
FV = $240 x (2.226218 - 1) ÷ 0.08
FV = $240 x 27.82772
FV = $6,678.65
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A market penetration strategy involves seeking growth in current markets with current products or services. True False Most organizations find that assessing their is easier than assessing their strengths; weaknesses o weaknesses; strengths O opportunities; threats threats: opportunities Alternative solutions range from the known and well defined to the untried and ambiguous. True False The application of knowledge management has three natural targets: an organization's teams, customers, and workforce True False
A market penetration strategy refers to a business growth plan that focuses on expanding the market share of existing products or services in current markets.
This approach can involve various tactics such as price adjustments, promotion campaigns, and improving customer service. By increasing market share, businesses can enhance their revenue and profitability without the need for significant investment in new products or markets.
When it comes to assessing a company's performance, most organizations find it easier to identify opportunities and threats in the market, rather than evaluating their strengths and weaknesses.
Alternative solutions to business problems can range from the familiar and straightforward to the untested and unclear. This range of options can provide a variety of approaches to tackling issues that companies face.
Finally, knowledge management involves identifying, capturing, evaluating, and sharing an organization's knowledge and expertise. It targets three key areas: teams, customers, and workforce, to ensure that a company's collective knowledge is used effectively to create value, increase productivity, and improve overall performance.
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An economist wants to determine whether average price/earnings (P/E) ratios differ for firms in three industries. Independent samples of five firms in each industry produced the following results after conducting a one-way ANOVA. SSB (sum of squares between groups) = 258.82 and SST (sum of squares total) = 424.04. Based on this information, the degrees of freedom associated with the SSB is equal to ___
The degree of freedom associated with the SSB in this scenario is 2. This means that we have two sources of variation: one between groups (SSB) and one within groups (SSW), and we can use these values to test for differences in the average P/E ratios across the three industries using a one-way ANOVA.
To determine the degrees of freedom associated with the SSB in this scenario, we need to first calculate the sum of squares within groups (SSW). This can be done by subtracting the SSB from the SST, which gives us:
SSW = SST - SSB
SSW = 424.04 - 258.82
SSW = 165.22
Next, we need to calculate the degrees of freedom associated with the SSB, which is equal to the number of groups minus one (k-1), where k is the number of groups. In this case, we have three industries, so:
df_SSB = k - 1
df_SSB = 3 - 1
df_SSB = 2
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the chart company has a process costing system. all materials are added when the process is first begun. at the beginning of september, there were no units of product in process. during september 50,000 units were started; 5,000 of these were still in process at the end of september and were 3/5 finished. the equivalent units for the conversion costs in september were:
The equivalent units for the conversion costs in September were 48,000. (45,000 completed units + 3,000 units still in process).
To calculate the equivalent units for conversion costs in September?
Step 1: Determine the number of completed units in September.
50,000 units started - 5,000 units still in process = 45,000 completed units
Step 2: Calculate the equivalent units for the in-process units.
5,000 units still in process * 3/5 completion rate = 3,000 equivalent units
Step 3: Add the completed units and equivalent units for the conversion costs.
45,000 completed units + 3,000 equivalent units = 48,000 equivalent units
So, the equivalent units for the conversion costs in September were 48,000.
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Which Category of behavioral intervention is the treatment of last resort?a. negative punishmentb. positive punishmentc. negative reinforcementd. time-out
The category of behavioral intervention that is considered the treatment of last resort is positive punishment. This is because positive punishment involves the application of an unpleasant consequence in response to a behavior, which can lead to negative emotional reactions and potentially cause harm or damage to the individual.
It is important to note that positive punishment should only be used in extreme cases where other behavioral interventions have been ineffective, and only under the guidance of a qualified professional.
Negative punishment, negative reinforcement, and time-out are generally considered less extreme forms of behavioral intervention and are often used as a first-line approach before resorting to positive punishment.
Negative punishment involves the removal of a desirable stimulus in response to a behavior, negative reinforcement involves the removal of an aversive stimulus in response to a desired behavior, and time-out involves the temporary removal of a person from a situation where the behavior is occurring.
Overall, it is important to consider the potential consequences and effectiveness of different behavioral interventions before choosing a treatment approach.
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(1) Do you have any experience in investing in bonds? Or willyou consider investing in bonds in the future? why?
Information and insights on investing in bonds.
Bonds can be a suitable investment for those who want a steady income stream and to preserve capital. Bonds are less risky than stocks but offer lower returns. The returns on bonds are fixed, which makes them a reliable investment.
Factors such as interest rate risk, inflation risk, credit risk, and default risk can impact bond investments. Investors should consider their investment goals, risk tolerance, and financial situation before investing in bonds.
Investing in bonds can be a viable option for those who want a reliable income stream and capital preservation. Bonds offer less risk than stocks but lower returns.
Before investing in bonds, investors should consider various factors such as interest rate risk, inflation risk, credit risk, and default risk. It is essential to have a diversified portfolio that balances the risk and return on investments.
Overall, investors should consider their investment goals, financial situation, and risk tolerance before investing in bonds.
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Assume you were a large and well-established company that was no facing a labor surplus in some job category. Why might it be in your best interest to use some method other than layoffs to reduce this surplus and in what sense are your options here a function of how well you did in terms of forecasting labor demand and supply?
Layoffs can have negative effects on the company's reputation, employee morale, and can lead to decreased productivity in the remaining workforce.
Instead, the company could consider alternative methods to reduce the labor surplus, such as implementing a hiring freeze, reducing work hours or offering voluntary time off, retraining employees to fill other roles within the company, or offering early retirement packages.
The company's options for reducing the labor surplus are a function of how well they forecasted labor demand and supply. If the company accurately forecasted a surplus, they could have implemented measures earlier to reduce the surplus, such as hiring freezes or not filling open positions. On the other hand, if the company did not accurately forecast the surplus, they may have fewer options to reduce it without resorting to layoffs.
In any case, it is in the company's best interest to consider all possible options and carefully weigh the pros and cons of each method before making a decision. This can help ensure that the company maintains a positive reputation, retains valuable employees, and remains competitive in the long run.
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issuers typically pledge 105 percent to 120 percent in mortgage collateral in excess of par value of the securities issued, in order to overcollateralize mbbs. group startstrue or false
"Issuers typically pledge 105 percent to 120 percent in mortgage collateral in excess of par value of the securities issued, in order to overcollateralize MBBs."The statement is false.
Assets such as cash, stocks, bonds, and other equities or securities may be pledged by a lender to secure a debt or loan. A pledged asset is security that a lender holds as payment for a loan. Pledged assets can lower both the down payment and interest rate that is generally required for a loan.
Although the borrower will give the lender the pledged asset, the borrower will continue to be the owner of the priceless item. The lender has the right to legally seize possession of the pledged asset in the event of a default by the borrower.
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Scampin Technologies is expected to generate $175 million in free cash flow next year, and FCF is expected to grow at a constant rate of per year indefinitely. Scampinhas no sehtor preferred stock and WACCHE 155, and it has zero nonoperating assets. If Scampinhas 50 million shares of stock outstanding, what is the sto's value per share not round intermediate calculation Round your answer to the nearest cent Each share of common stock is worth $ according to the corporate valuation model
The value per share of Scampin Technologies common stock is $18.31 according to the corporate valuation model.
The corporate valuation model can be represented as V₀ = FCF₁ / (WACC - g), where V₀ is the current value of the firm, FCF₁ is the expected free cash flow next year, WACC is the weighted average cost of capital, and g is the expected constant growth rate of free cash flow.
Substituting the given values, we get:
V₀ = $175 million / (0.155 - g)
Since the free cash flow is expected to grow at a constant rate of g per year indefinitely, we can use the Gordon growth model to calculate the value of the firm:
V₀ = FCF₁ × (1 + g) / (WACC - g)
Substituting the given values, we get:
V₀ = $175 million × (1 + g) / (0.155 - g)
To find the value per share, we divide the value of the firm by the number of shares outstanding:
Value per share = V₀ / Shares outstanding
Substituting the given values, we get:
Value per share = ($175 million × (1 + g) / (0.155 - g)) / 50 million
To solve for g, we can use the formula for the WACC:
WACC = (E/V) × Re + (D/V) × Rd × (1 - Tc)
where E is the market value of equity, V is the total value of the firm, Re is the cost of equity, D is the market value of debt, Rd is the cost of debt, and Tc is the corporate tax rate.
Since Scampin has zero nonoperating assets and no preferred stock, the market value of equity is equal to the total value of the firm. Therefore, we can simplify the formula to:
WACC = Re
Substituting the given WACC of 0.155, we get:
0.155 = Re
To solve for g, we need to find the cost of equity, Re. We can use the CAPM formula to calculate the cost of equity:
Re = Rf + β × (Rm - Rf)
where Rf is the risk-free rate, β is the beta coefficient, and Rm is the market risk premium.
Since the beta coefficient and the market risk premium are not given, we cannot calculate the cost of equity directly. However, we can assume a reasonable range of values for these variables and calculate the corresponding values of g and the value per share.
Assuming a risk-free rate of 2%, a market risk premium of 6%, and a beta coefficient of 1.2, we get:
Re = 2% + 1.2 × 6% = 9.2%
g = Re × (1 - Tc) = 9.2% × (1 - 0) = 9.2%
Value per share = ($175 million × (1 + 9.2%) / (0.155 - 9.2%)) / 50 million = $18.31
Therefore, each share of Scampin Technologies common stock is worth $18.31 according to the corporate valuation model.
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what is the major economic problem with using public works projects (like the wpa program of the 1930s) to end a long-lasting recession?
The main economic issue with utilising public works projects to end a protracted recession is the possibility of unaffordable government spending, inflation, and increasing public debt.
What three issues with the economy are brought on by a recession?High unemployment, declining average earnings, greater inequality, and increased government borrowing are common characteristics of a recession (loss in national income).
Does a recession lead to higher prices?The key link between inflation and a recession is a slowdown in the economy. Governments attempt to decrease economic activity until it reaches the economy's productive capacity in an effort to control inflation. If they are successful, they can prevent major injury while slowing the cycle of spending and price increases.
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when caterpillar, inc. invests in training designed to help its employees produce mistake-free items, it is incurring costs. group of answer choices appraisal prevention external failure statistical quality control
When Caterpillar, Inc. invests in training designed to help its employees produce mistake-free items, it is incurring prevention costs.
Prevention costs are costs incurred to prevent defects from occurring in the first place, and they are an important aspect of a company's quality management system.
By investing in training programs that focus on quality control and mistake prevention, Caterpillar can reduce the likelihood of defects occurring, which can ultimately save the company money in the long run.
This is because defects can result in external failure costs, which are costs incurred when defective products are identified after they have been shipped to customers.
Overall, investing in prevention costs can be a smart strategy for companies like Caterpillar, who want to maintain high levels of quality while keeping costs under control.
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you loan stuart $500,000 on 7-1-x7 at an interest rate of 4%. what is the amount he must repay 1 year later?
Stuart borrowed $500,000 from you on July 1, 2017, and agreed to pay back the loan after one year. The interest rate on the loan was 4%. Therefore, Stuart would have to pay back the loan amount plus interest of 4%.
To calculate the amount that Stuart must repay, we need to first determine the amount of interest he will owe. The interest on the loan can be calculated using the simple interest formula:
Interest = Principal x Rate x Time
Here, the Principal is $500,000, the Rate is 4%, and the Time is 1 year.
So,
Interest = $500,000 x 4% x 1 year
Interest = $20,000
This means that the interest on the loan will be $20,000. Therefore, Stuart must repay $520,000 ($500,000 loan amount + $20,000 interest) after one year.
In summary, Stuart borrowed $500,000 from you and agreed to repay the loan after one year with an interest rate of 4%. The interest on the loan was calculated to be $20,000 using the simple interest formula. Therefore, Stuart must repay a total of $520,000 ($500,000 loan amount + $20,000 interest) one year later.
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What is LNG and its significance to US nat gas markets? ? What is the significance of using "cross overs" in the positioning of trades. The "Polar Vortex" a few years ago caused the prices on Tr
Liquefying natural gas is a means to transport natural gas from producing regions to markets, such as to and from the United States and other countries, when natural gas pipelines are not practical or do not exist.
What is LNG?
LNG is the cleanest fossil fuel, producing 40% less carbon dioxide (CO2) than coal and 30% less than oil. It creates negligible quantities of Sulphur dioxide, mercury, and other substances that are detrimental to the earth's atmosphere but does not release soot, dust, or other particles.
Natural gas in liquid form is known as LNG. LNG is created by purifying natural gas and liquidizing it at a temperature of -260°F. Natural gas is chilled below its boiling point during the liquefaction process, which eliminates the majority of the fuel's superfluous components.
Cryogenic burns, asphyxiation, dispersion, flames, and explosions result from LNG leaks over water. Regarding public safety, each of these is a top priority. To make the journey safer, the appropriate safety precautions should be implemented.
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carson inc. manufactures only one product and is preparing its budget for next year based on the following information: selling price per unit $100 variable costs per unit 75 fixed costs 250,000 effective tax rate 35% if carson wants to achieve a net income of $1.3 million year, its sales must be
Carson Inc. ought to sell 90,000 units to obtain a net profits of $1.3 million for the yr.
To determine the sales required to achieve a internet income of $1.3 million, we need to apply the subsequent components:
Net earnings = (sales - Variable expenses - fixed costs) x (1 - Tax charge)
We're given the promoting fee per unit and variable expenses in step with unit, so we can calculate the contribution margin according to unit as follows:
Contribution Margin consistent with Unit = promoting rate consistent with Unit - Variable expenses according to Unit
Contribution Margin in line with Unit = $100 - $75
Contribution Margin per Unit = $25
We will then use the contribution margin according to unit to calculate the income required to acquire the favored internet profits:
Internet income = (sales - Variable costs - constant charges) x (1 - Tax price)
$1,300,000 = (income x Contribution Margin in keeping with Unit - fixed costs) x (1 - 0.35)
$1,300,000 = (sales x $25 - $250,000) x 0.65
$1,300,000 = (income x $25 - $250,000) x 0.65
$1,300,000 = $16.25 x income - $162,500
$1,300,000 + $162,500 = $16.25 x sales
$1,462,500 = $16.25 x sales
sales = $1,462,500 / $16.25
sales = 90,000 units
Therefore, Carson Inc. need to sell 90,000 units to achieve a net profits of $1.3 million for the yr.
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: how can an es be used to report employee fraud to a manager or officer? think about the information that could be entered in an es.
An ES, or Ethics Hotline System, can be an effective tool for employees to report instances of fraud, misconduct, or unethical behavior to their managers or officers. When reporting employee fraud through an ES, it is important to include the following information:
1. Date and time of the incident: Provide specific details about when the incident occurred, such as the date, time, and location.
2. Description of the incident: Describe the incident in detail, including the nature of the fraud, who was involved, and how it occurred.
3. Evidence: Provide any evidence you have to support your claim, such as documents, emails, or witness statements.
4. Names of individuals involved: Provide the names of any individuals who were involved in the incident or who may have witnessed it.
5. Contact information: Provide your contact information so that the manager or officer can follow up with you if necessary.
By including this information in an ES report, employees can help their managers or officers investigate and address instances of fraud or unethical behavior within the company.
The ES system can also provide a safe and confidential way for employees to report incidents without fear of retaliation or retribution.
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Advertising can persuade consumers to pay higher prices for products that are well (one word) instead of purchasing unadvertised products with lower prices
Advertising can persuade consumers to pay higher prices for products that are well conveying information to the costumer instead of purchasing unadvertised products with lower prices.
Advertising is a promotional pastime which ambitions to promote a service or product to a target market. It is one of the oldest varieties of advertising which tries to persuade the moves of its target market to both buy, promote, or do some thing specific. The definition of marketing and marketing is an enterprise used to name the eye of the general public to some thing, generally a service or product. The definition of commercial is the approach of verbal exchange wherein a product, emblem or carrier is promoted to a viewership which will appeal to interest, engagement, and sales.
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Advertising can persuade consumers to pay higher prices for products that are well-branded instead of purchasing unadvertised products with lower prices. The reason behind this is that advertising creates an impression in the minds of consumers that the branded product is of higher quality and therefore worth the extra money.
This is because advertising usually involves a significant investment in creating an image that is associated with the product. The product is then marketed in a way that creates a sense of exclusivity or superiority over other products in the market.
Consumers tend to be more willing to pay more for a product that they perceive to be of higher quality. This is because they believe that the higher price is justified by the superior quality of the product. This perception is often created by the advertising campaigns that are run for the product. Advertising campaigns use various tactics such as celebrity endorsements, product demonstrations, and emotional appeals to create a strong emotional connection with consumers.
On the other hand, unadvertised products with lower prices may be perceived by consumers as being of lower quality. This is because they have not been exposed to any advertising campaigns that would create a perception of superiority or exclusivity. As a result, consumers may be less willing to pay a higher price for these products even if they are of good quality.
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the larger the amount of principal, the larger the dollar amount of interest. true false
The given statement "the larger the amount of principal, the larger the dollar amount of interest" is True because the amount of principal and amount of interest is directly proportional in the case of increase or decrease value.
The amount of interest earned on an investment is directly proportional to the principal amount. The larger the principal amount, the larger the dollar amount of interest earned.
Therefore, the given statement is true a larger principal will result in a larger dollar amount of interest.
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A customer makes a savings deposit for 45 days. During that time he earns $5 in interest and maintains an average daily balance of $1,000. What is the annual percentage yield on this savings account? A. 0.5% B. 4.13% C. 4.07% D. 5% E. None of the options is correct
The annual percentage yield on this savings account is 4.13%.
To calculate the annual percentage yield (APY), we need to know the effective annual interest rate (EAR), which takes into account the effect of compounding. We can use the following formula:
[tex]EAR = (1 + r/n)^n - 1[/tex]
where r is the nominal annual interest rate, n is the number of compounding periods in a year, and ^ represents exponentiation.
Let's start by finding the nominal annual interest rate. We know that the customer earned $5 in interest over 45 days, so the simple interest rate for that period is:
[tex]r = (5 / 1000) * (365 / 45)[/tex]
= 0.0402777... or approximately 4.03%
Next, we need to determine the number of compounding periods in a year. Since the customer made a 45-day deposit, we can assume that the bank compounds interest daily, which gives us:
n = 365
Substituting these values into the EAR formula, we get:
[tex]EAR = (1 + 0.0402777/365)^365 - 1[/tex]
= 0.0413 or approximately 4.13%
Therefore, the correct answer is B. 4.13%.
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As the chapter tells us, credit can be a good thing if used properly. However, many people misuse credit and end up in financial trouble. Talk to a mentor/parent/supervisor about credit and ask them, if they could give any advise to college students about credit--what would it be and why? Type their answer.
The advise they can give about credit is given below in detail as some of the important points.
In the field of finance, the term "credit" has a variety of connotations, but it is most frequently used to describe a legal arrangement in which a borrower obtains money or another valuable asset in exchange for agreeing to pay the lender back at a later time, usually with interest.
Credit may also refer to someone or something's creditworthiness or credit history, as in "she has good credit." It is a term used in the accounting industry to describe a certain kind of bookkeeping entry.
Credit cards provide a variety of benefits, including ease, credit development, financing, and inexpensive currency exchange. There are no overseas transaction fees for credit cards.
Cash back and perks are also offered by credit cards in numerous purchases. The average person's spending power is rising thanks to credit cards. They provide chances to do credit transactions.
The borrower has an excellent credit rating.
On the other side, some individuals abuse this capability. When a credit card is misplaced, the person who finds it may use it improperly.Use your credit card responsibly; do not abuse it.We use credit cards so that we may make any purchases we desire without having to worry about money or stress.Learn more about Credit:
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helps ensure that critical problems get priority over less important ones is called
The term that describes the process of prioritizing critical problems over less important ones is known as triage. Triage is commonly used in emergency medical situations to quickly assess the severity of injuries and prioritize treatment based on the urgency of the situation.
The same concept can be applied to other fields, such as IT or customer support, where a triage system can be implemented to quickly identify and address critical issues that may be impacting business operations.
By using a triage system, organizations can ensure that resources are allocated effectively and efficiently, and critical problems are addressed in a timely manner.
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