The company has net nonoperating obligations (NNO) of $10,000 and 5,000 shares outstanding. Calculate the per-share stock price for 2021 using the FCFF information above, a discount rate of 7%, and a terminal growth rate of 2%. Hint: a. Calculate PV FCFF for each of 2022 to 2025 and sum them up; b. Calculate PV Terminal Year; c. Calculate Total Firm value by adding up (a) and (b); d. Subtract net nonoperating obligation to get total equity value; e. Divide total equity value by shares outstanding to get the per-share stock price (Please show your calculations)

Answers

Answer 1

The per-share stock price for 2021 using the FCFF information for Target Corp. is $2.37.

Explanation:

Net non-operating obligations (NNO) = $10,000

Outstanding shares = 5,000 shares

Discount rate = 7%

Terminal Growth rate = 2%

Expected free cash flows for Target Corp. for 2019:

                                     Current   Forecast Horizon                        Terminal

                                          2019    2020    2021     2022     2023      Year

Free cash flows (FCFF) $4,650 $4,880 $5,130  $5,390 $5,650   $5,766

Discount factor at 7%                  0.935   0.873     0.816    0.763     0.713

PV of FCFF                                $4,563  $4,478  $4,398   $4,311     $4,111

a. Sum of PV of FCFF for 2020 to 2032 = $17,750 ($4,563 + $4,478 + $4,398 + $4,311)

b. The PV Terminal Year = $4,111

c. Total Firm Value = $21,861 ($17,750 + $4,111)

d. Total Equity Value = $11,861 ($21,861 - $10,000)

e. Per Share Stock Price = $2.37 ($11,861/5,000)

Thus, the per-share stock price for 2021 using the FCFF information for Target Corp. is $2.37.

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Related Questions

If an economy's GDP falls, then it must be the case that the economy's a. income and saving both fall. b. income falls and expenditure rises. c. income and expenditure both fall. d. income falls and saving rises.

Answers

When the income and expenditure both fall, then, it is likely that the economy's GDP will falls.

Basically, the economy's GDP refers to the total of all value added created in an economy in a particular period,

So, when income and expenditure of an economy falls, then, it is likely that the economy's GDP will falls consequently.

Therefore, the Option B is correct because it is likely that the economy's GDP will falls.

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A customer has an existing margin account that shows the following: Long Market Value: $100,000 Debit Balance: $60,000 If the market value declines to $60,000, the customer will receive a maintenance call for:

Answers

$36,000? I didn't really understand the question.

Pls help me with this I’ll do 100 points pls pls

Answers

Answer:

It looks like you have to make a presentation for this.

Explanation:

You have to create a ppt (and quick) on promotion.

The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is: Multiple Choice Operating activities. Financing activities. Investing activities. In a note to the statement or in a separate schedule. Reconciliation of cash balance.

Answers

The purchase of land in exchange for common stock should be adequately reported in cash flows statement through the Schedule of Non-cash investing or financing activity.

Basically, the non-cash investing and financing activities entails use of some financial tools (not cash) to make an investment or purchase.

The examples of transaction reported as non-cash investing and financing activities is  taking out of loan or signing a note payable.

In conclusion, the purchase of land in exchange for common stock should be reported in the schedule of Non-cash investing or financing activity.

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This diagram represents __________________ communications.

a. diagonal
b. upward
c. downward
d, horizontal

Which of the following are examples of this type of communication?
Check all that apply.

- A team of doctors, nurses, technicians, and managers get together at Highland Hospital to discuss ways to save money. They agree to swap a lab kit that costs $96.50 for one that costs $0.29.
- The CEO of Nokia, Stephen Elop, meets with 2,000 employees to tell them why he is recommending that they abandon Nokia software to use less popular software from Microsoft.
- Cargill’s director of high-intensity sweeteners, Zanna McFerson, tells her boss, Marcelo Montero, the president of Cargill’s Health and Nutrition division, that a glycoside called Rebiana can be used to create a new artificial sweetener to be called Truvia.
- Hewlett-Packard CEO Meg Whitman announces to employees that HP will cut its workforce by up to 30,000 people.

Answers

The information in this question represents a downward type of communication in an organization.

Examples of this type of communication from the question are:

The CEO of Nokia, Stephen Elop, meets with 2,000 employees to tell them why he is recommending that they abandon Nokia software to use less popular software from Microsoft.Hewlett-Packard CEO Meg Whitman announces to employees that HP will cut its workforce by up to 30,000 people.

This is a downward type of communication given the fact that information flows from the head of the organization to the employees that are at the lower level.

The red arrow in the diagram shows us that information is being passed down from the CEO to the employees in the organization.

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Answer:

This diagram represents upward communications.

✘ A team of doctors, nurses, technicians, and managers get together at Highland Hospital to discuss ways to save money. They agree to swap a lab kit that costs $96.50 for one that costs $0.29.

✔ The CEO of Nokia, Stephen Elop, meets with 2,000 employees to tell them why he is recommending that they abandon Nokia software to use less popular software from Microsoft.

✔ Cargill’s director of high-intensity sweeteners, Zanna McFerson, tells her boss, Marcelo Montero, the president of Cargill’s Health and Nutrition division, that a glycoside called Rebiana can be used to create a new artificial sweetener to be called Truvia.

✘ Hewlett-Packard CEO Meg Whitman announces to employees that HP will cut its workforce by up to 30,000 people.

Unlimited liability for sole proprietors means that​

Answers

Answer:

Sole proprietors and partners have unlimited liability. The unlimited liability means that if you're unable to repay the debts of the business, your creditors can go after whatever you own

which is better Window 11 or 10?

Answers

Answer:

Window 10 is better then 11, so i recommand skip 11

Explanation:

Planned sales for June this year are $120,000. Last year, the actual sales for June were $110,000. Determine the planned percent increase in sales for the month.

Answers

Given that the planned sales for June this year are $120,000 and that last year's actual sales for the month of June were $110,000, there is a 9.09% increase in sales for the month.

The actual increase in sales is $10,000 ($120,000 - $110,000) or ($110,000 x 1.0909 - $110,000)

Data and Calculations:

Planned sales for June, this year = $120,000

Actual sales for June,last year = $110,000

Planned percent increase in sales for June = 9.09% ($10,000/$110,000 x 100)

Thus, the planned percentage increase in sales for the month is 9.09%.

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Homework help

The acronym used for the process of setting goals is..

O ACHIEVE
O OUTCOME
O GOAL
O SMART

Answers

Answer:

SMART

Explanation:

hope this helps and is right!! p.s. i really need brainliest :)

what are the effects of business on environment? List them. ​

Answers

Answer:

The four main environmental issues that are most likely to influence the activities of a business are climate change, pollution, sustainability and waste reduction.

Explanation:

observant real life story examples

Answers

Answer:

real life story real life stories is a story that mean in real life

PLEASAE HELP ME YOU GUYS!!!!!!!!!!!!!!! 40 POINTS IF YOU ANWSER ALL!!!!

What do fear-based marketing messages and advertisements focus on? (Select the best answer.)

Question 1 options:

Threats to the company's business


The company's competitors and their prices


The bad things that will happen to people who don't buy the product


Negative changes in the market that have reduced demand for the product

Question 2 (1 point)
Jacob is a marketer at Gamer Way Video Games. He is currently working to develop four different color versions of their latest video game console. Which of the four Marketing Mix strategies is Jacob working on?

Question 2 options:

Product


Place


Price


Promotion

Question 3 (1 point)
If a product is difficult to find or only carried by high-end retailer, this adds to it's prestige. This always benefits your marketing message.

Question 3 options:
True
False
Question 4 (1 point)
Which of the following can help you evaluate the performance of your ads and other marketing strategies?

Question 4 options:

Sending out a press release multiple times


Collecting secondary data about your target market


Asking customers how they found out about your company or product


Asking competitors what they think of your advertising strategy

Answers

Answer:

1. threats to the company

2. is product

3.true

4. sending out press release

State the main legislation for health and safety
Quick as possible please

Answers

Answer:

hold on i will get back to you in a moment

Explain the term opportunity cost

Answers

Answer:

the loss of potential gain from other alternatives when one alternative is chosen.

"idle cash balances represent an opportunity cost in terms of lost interest"

Explanation:

If a disease infects and destroys a large amount of the nation's supply of tomatoes, what is likely to happen to the price of tomatoes? (Select the best answer.)

Question 5 options:

The price will go up.


The price will remain the same.


The price will go down.

Question 6 (1 point)
In cases of natural monopolies- such as utility companies- prices are kept under control MAINLY through

Question 6 options:

competition


supply and demand


free market forces


government regulation

Question 7 (1 point)
· firms produce and sell identical products
· firms have a relatively small market share
· consumers are aware of the products and their prices
· there are few barriers to entry into the market


All of these are describing what market type of market structure?
Question 7 options:

monopoly


oligopoly


monopolistic competition


perfect competition

Question 8 (1 point)

In the five C's, how is cost different from price? (Select the best answer.)

Question 8 options:

It includes all of the costs related to the product.


It makes it easier to promote the product.


It reduces the company's operating expenses.


It includes the company's operating costs.

Question 9 (1 point)

You notice that juice is now selling for much higher prices than in the past. Which two things would you expect to happen next? (Select two answers.)

Question 9 options:

Supply will go up


Demand will go down


Supply will go down


Demand will go up

Question 10 (1 point)
Needs, product, source, price, and time could all be known as ______.

Question 10 options:

Customer objections to a sale


Economic services


Sales promotion


Channel management function

Answers

Answer:

q5) price will go up

q6) government regulatories

q7) perfectly competitive

q8) includes all cost related to the product

q9)supply will go up and demand will go down

q10) customer objections to sale

Sharon is part of a software engineering team. Her task is to develop a diagnostic program for the medical profession. This is a very complex task. What type of communication structure would work best for her group?
a. Linear
b. Centralized
✔ c. Decentralized
d. Focused
e. All of these

Answers

Answer:

Focus

Explanation:

if she is focus she will achieve it

Funseth Farms Inc. purchased a tractor in 2018 at a cost of $30,000. The tractor was sold for $3,000 in 2021. Depreciation recorded through the disposal date totaled $26,000. (1) Prepare the journal entry to record the sale. (2) Now assume the tractor was sold for $10,000; prepare the journal entry to record the sale

Answers

1. The journal entries that Funseth Farms Inc. will record for the sale of the tractor are as follows:

Debit Sale of Tractor $30,000

Credit Tractor $30,000

To transfer the Tractor account to Sale of Tractor account.

Debit Accumulated Depreciation $26,000

Credit Sale of Tractor $26,000

To transfer the accumulated depreciation to Sale of Tractor account.

Debit Cash $3,000

Credit Sale of Tractor $3,000

To record the cash receipts from the sale.

Debit Loss from Sale $1,000

Credit Sale of Tractor $1,000

To record the loss from the sale.

2) If the tractor was sold for $10,000, the journal entries are as follows:

Debit Sale of Tractor $30,000

Credit Tractor $30,000

To transfer the Tractor account to Sale of Tractor account.

Debit Accumulated Depreciation $26,000

Credit Sale of Tractor $26,000

To transfer the accumulated depreciation to Sale of Tractor account.

Debit Cash $10,000

Credit Sale of Tractor $10,000

To record the cash receipts from the sale.

Debit Sale of Tractor $6,000

Credit Gain from Sale $6,000

To record the gain from the sale.

Data Analysis and Calculations:

Cost of Tractor in 2018 = $30,000

Accumulated Depreciation = $26,000

Proceeds from sale = $3,000

Loss from Sale = $1,000

Accumulated Depreciation $26,000 Sale of Tractor $26,000

Sale of Tractor $30,000 Tractor $30,000

Cash $3,000 Sale of Tractor $3,000

Loss from Sale $1,000 Sale of Tractor $1,000

2) If the tractor was sold for $10,000, the journal entries are as follows:

Accumulated Depreciation $26,000 Sale of Tractor $26,000

Sale of Tractor $30,000 Tractor $30,000

Cash $10,000 Sale of Tractor $10,000

Sale of Tractor $6,000 Gain from Sale $6,000

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what advice is given by tom peters in the article customer first? analyse and summarize.​

Answers

Answer:

which article?

Explanation:

Refer to Figure 13-6. The firm experiences economies of scale at which output levels?
a. Output levels less than M
b. Output level greater than M
c. Output levels between M and N
d. Output levels greater than N

Answers

The firm experiences economies of scale at which output levels output levels less than M.

A firm experiences economies of scale when as quantity produced increases, total cost reduces. This is because total cost associated with production is spread out over a large quantity of goods.

A firm experiences economies of scale at the downward sloping part of the long run average total cost curve.

A firm experiences constant returns to scale between M and N of the long run average total cost curve.

A firm experiences diseconomies of scale at the upward sloping part of the long run average total cost curve.

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he following information relating to a company's overhead costs is available.

Budgeted fixed overhead rate per machine hour $ 0.50​
Actual variable overhead $ 96,000​
Budgeted variable overhead rate per machine hour $ 4.00​
Actual fixed overhead $ 15,000​
Budgeted hours allowed for actual output achieved 41,000​
Based on this information, the total overhead variance is:
a $5500 unfavorable.
b $73,500 unfavorable.
c $73,500 favorable.
d $68,000 favorable.
e $5500 favorable.

Answers

Answer:

A) $2,000 favorable

Explanation:

Actual total variable overhead = $ 73,000

Actual total fixed overhead = $ 17,000

Budgeted variable overhead rate per machine hour = $ 2.50

Budgeted total fixed overhead = $ 15,000

Budgeted machine hours allowed for actual output = 30,000

Budgeted variable overhead = $ 2.50 x 30,000 = $ 75,000

Variable overhead variance = Budgeted variable overhead - Actual total variable overhead

Variable overhead variance = $ 75,000 - $ 73,000 = $ 2,000

Since the actual value is under the budgeted value, the variable overhead variance is $2,000 favorable.

One example of ___________________ is a wiki, a site where community members can add and discuss information to develop a resource for the entire community. Wikipedia is a famous example of a wiki.

a. a centralized network
b. a formal channel
c. upward communication
d. social media

Answers

One example of social media is a wiki, a site where community members can add and discuss information to develop a resource for the entire community: D. social media

Social media can be defined as a collection of Internet software programs (applications) which avails end users the ability to add, share and discuss information, as well as enhance collaboration between community members over the Internet.

This ultimately implies that, wiki is an example of a social media because it allows community members to add and discuss information, in order to develop a resource for the entire community.

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Answer:

d. social media

Explanation:

Wikis are a type of social media. One way companies can use them is to organically develop reference or training materials that reflect consensus on best practices through contributions and editing by employees. Passionate communities can develop around wikis, as shown by the success of Wikipedia. The giant wiki has its challenges, including ensuring information integrity, maintaining volunteer commitment, and representing diversity, but as the sixth most visited website in the world and about 5 million entries just in English, it demonstrates the opportunity to leverage a community to create a shared resource of great value.

Because any authorized member of the community can post an entry, change, or comment to a wiki, this is not a formal communication channel and communication is decentralized.

True or False: Some nonactivists believe in a predetermined-money growth rate, which suggests that the monetary authorities should target the proper federal funds rate before implementing monetary policies. False

Answers

True Some no activist believe in a predetermined money growth rate

Who else is affected when an organization acts unethically? Who is affected when an employee acts unethically? List at least three groups and explain how each group is affected by unethical actions by a employer and an employee.

Answers

Employees can be affected when an organization acts unethically such as not enforcing safety laws and not providing proper equipment to employees which can also lead to dangerous environments which lead to injury or death

Customers can be affected when improper enforcement is used while creating or producing products or goods that a customer would then use.

Shareholders can be affected financially if news of unethical actions by the entity was declared by the public.

Jade has learned that listening to customers, learning about their needs, and communicating with them over a prolonged period of time is key toward making large business sales. Jade is most likely using

Answers

Since Jade has learned that listening to customers, learning about their needs, and communicating with them is the key to making large business sales, Jade is probably using relationship selling.

This is an effective sales strategy, as currently the relationship between companies and consumers has intensified and is much more direct, with companies creating value for the consumer in different aspects of the sales process.

Relationship selling focuses on solving problems through personalized service that does not focus on the product and price, but on the consumer's perspective.

Therefore, relationship selling aims to understand the buyer's needs by solving their problems and satisfying their desires, where the seller acts as a partner capable of generating value for the consumer.

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Tony’s favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, “I’ve always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place.” On November 1, 2022, Great Adventures purchased the land by issuing a $400,000, 6%, 8-year installment note to the seller. Payments of $5,257 are required at the end of each month over the life of the 8-year loan. Each monthly payment of $5,257 includes both interest expense and principal payments (i.e., reduction of the loan amount). Late that night Tony exclaimed, “We now have land for our new camp; this has to be the best news ever!” Suzie said, “There’s something else I need to tell you. I’m expecting!” They decided right then, if it was a boy, they would name him Venture.
Required: 1. Complete the first three rows of an amortization schedule.
Required 2&3. Record the purchase of land with the issuance of a long-term note payable on November 1, 2022, and the first two payments on November 30, 2022, and December 31, 2022, and calculate the remaining balance of the note payable as of December 31, 2022. (If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account field.) then record the balance
Required 4. The 12 monthly payments in 2023 (following year) will reduce the note's balance by an additional $40574. How would the remaining balance of the note payable be reported in the balance sheet as of December 31, 2022?

Answers

1. The completion of the first three rows of a monthly amortization schedule is as follows:

Monthly Amortization Schedule  

           Beginning            Interest         Principal       Ending

            Balance             Payment      Repayment      Balance

1      $400,000.00      $2,000.00      $3,257.00      $396,743

2      $396,743.00        $1,984.00      $3,273.00      $393,470

3      $393,470.00        $1,967.00      $3,290.00      $390,180

2&3. Journal Entries:

November 1, 2022:

Debit Land $400,000

Credit Note Payable $400,000

To record the issuance of the note payable for the purchase of the land.

November 30, 2022:

Debit Interest Expense $2,000

Debit Note Payable $3,257

Credit Cash $5,257

To record the first interest payment.

December 31, 2022:

Debit Interest Expense $1,984

Debit Note Payable $3,273

Credit Cash $5,257

To record the second interest payment.

3. The remaining balance of the note payable as of December 31, 2022, is $393,470.

4. In the balance sheet as of December 31, 2022, the remaining balance of the note payable ($393,470) will be reported under Current Liabilities of $40,574 and Long-term Liabilities of $352,896.

Data and Calculations:

Note payable = $400,000

Interest rate = 6% per annum

Maturity period = 8 years

Monthly installmental payment  (interest and principal inclusive) = $5,257

Bal;ance of the Note Payable

November 1, 2022: Note Payable                $400,000

First two repayments in Nov and Dec. 2022 = 6,530 ($3,257 + $3,273)

Balance as of December 21, 2022                393,470

Repayments from Jan. 1 to Dec. 2023            40,574

Balance as of December, 2023                    352,896

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Consider the market for land in central Pennsylvania, where land is used mainly for growing agricultural goods, as compared to the market for land in Rittenhouse Square, a small section of Philadelphia known for its cafes and shopping.
Because the supply of land in central Pennsylvania is_____, buyers in central Pennsylvania pay____for use of the land. The rental price of land is much lower in central Pennsylvania than in more densely populated areas like Rittenhouse Square. One possible explanation for this rent difference is that highly productive land is in low____.
Some entrepreneurs decide to build parking lots in Rittenhouse Square. The supply curve for land to be used for parking lots is_____.

Answers

The supply land in central Pennsylvania is perfectly inelastic, buyers in central Pennsylvania pay an interest rate for land use.

The rental price is lower in central Pennsylvania than Rittenhouse Square. One possible explanation for this rent difference is that highly productive land is downward sloping.

Some entrepreneurs decide to build parking lots on Rittenhouse Square. The supply curve for land to be used in parking lots is upward slopping.

Perfectly inelastic supply corresponds to one in which the demand curve is vertical, that is, the quantity demanded does not respond very strongly to price changes.

Buyers pay an interest rate for the use of the land, as the quantity demanded does not change if the price changes.

The rent price in central Pennsylvania is lower than in the Rittenhouse Squar due to the downward sloping curve that corresponds to lower interest expectations in the future, due to the elasticity of the supply.

The construction of parking lots in Rittenhouse Square is upward sloping because of the response to the profit that entrepreneurs hope to achieve in a perfectly elastic market.

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Your brother rarely filters his observations and often makes insensitive comments that
offend others. What skill does he need to work on?
ed
a. Code-switching
b. Self-monitoring
c. Multimodality
d. Circumscribing

Answers

Considering the situation described above, my brother needs to work on Self-Monitoring.

This is because Self-Monitoring is a term often used in sociology to describe the ability to is a personality trait that involves monitoring and regulating personal presentations, emotions, and attitudes towards his social environments and situations.

By mastering the habit of Self-Monitoring, my brother would be aware of his words, behaviors, and emotions towards its effects on the people around him.

Hence, in this case, it is concluded that the correct answer is "Self-Monitoring."

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A manufacturer paid total factory payroll of $200,000 in cash. The journal entry for this transaction includes a:

Answers

Based on the information given the journal entry for this transaction includes a: Debit Factory Wages Payable $200,000; Credit Cash $200,000.

Based on the given details the we were told that total factory payroll of the amount of $200,000 was paid by cash by the manufacturer.

Hence:

The appropriate journal entry to record this transaction is:

Debit Factory Wages Payable $200,000

Credit Cash $200,000

(To record factory wages payable)

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Montgomery Corp. has been paying dividends of $0.90 per share. Assume it has a cost of equity capital of 8.5%. Estimate the stock value per share of Montgomery Corp. using the dividend discount model (DDM) under each of the following separate assumptions:
1) The dividend will continue to stay at $0.90 per share in the future
2) The dividend will be $0.90 for the next two years and then will grow at a rate of 3.5%
(Please show your calculations)

Answers

1. The stock value per share of Montgomery Corporation is $10.59 ($0.90/8.5%).

2.  The stock value per share of Montgomery Corporation is $18 ($0.90/ (8.5% -3.5%).

Data and Calculations:

Dividend per share = $0.90

Cost of equity = 8.5%

Growth rate after two years =3.5%

The stock value is determined with the following formula:

P =  D(1)/(r - g)

P = stock price

D (1) = value of next year dividend

r = constant cost of equity capital

g = constant growth rate in perpetuity

Thus, the stock price of Montgomery Corp. will be $10.59 without factoring in the growth rate of 3.5%. The stock price will be $18 per share with the growth rate.

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Cause of globalisation on the economy of South Africa

Answers

Answer:

There is a general consensus (see Rodrik, 1997; Frankel, 2000; Hemmer, 2001) that the driving forces behind economic globalisation are a reduction in transport and communication costs in the private sector, reduced policy barriers to trade and investment by the public sector, an increase in the availability of and ...

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