A firm's current profits are $400,000. These profits are expected to grow indefinitely at a constant annual rate of 6 percent. If the firm's opportunity cost of funds is 8 percent, determine the value of the firm: Instructions: Enter your responses rounded to two decimal places. a. The instant before it pays out current profits as dividends. $ million b. The instant after it pays out current profits as dividends. $ million

A firm's current profits are $400,000. These profits are expected to grow indefinitely at a constant annual rate of 6 percent. If the firm's opportunity cost of funds is 8 percent, determine the value of the firm: Instructions: Enter your responses rounded to two decimal places. a. The instant before it pays out current profits as dividends. $ million b. The instant after it pays out current profits as dividends. $ million

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 2E

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4. Ted Baxter runs a small, very stable newspaper company insouthern Oregon. The paper has been in business for 25 years.The total value of the firm’s capital stock is $1 million, which Tedowns outright. This year the firm earned a total of $250,000after out-of-pocket expenses. Without taking the opportunitycost of capital into account, this means that Ted is earning a25 percent return on his capital. Suppose that risk-free bondsare currently paying a rate of 10 percent to those who buy them.d. How much excess profit is Ted earning?
4. Ted Baxter runs a small, very stable newspaper company insouthern Oregon. The paper has been in business for 25 years.The total value of the firm’s capital stock is $1 million, which Tedowns outright. This year the firm earned a total of $250,000after out-of-pocket expenses. Without taking the opportunitycost of capital into account, this means that Ted is earning a25 percent return on his capital. Suppose that risk-free bondsare currently paying a rate of 10 percent to those who buy them.a. What is meant by the “opportunity cost of capital”?b. Explain why opportunity costs are “real” costs even thoughthey do not necessarily involve out-of-pocket expenses. c. What is the opportunity cost of Ted’s capital?d. How much excess profit is Ted earning?
how do financial analyst might Financial statement Liquidity,Working capital, Diversifica!on and Time value of mone when communica!ng informa!on to management or clients, or when relaying informa!on to inform important decisions
Marvel Woodorat makes furiture. Marvats exoected sales are 22.000 bookcases for the quarter. The company begins the quaner with inventory of 3,000 bookcases and worts to heve ensugh finished bookceses en hand et the end of the queter to provide for 15% ef the next querter's erpected saies of 27.000 bookcses gnoring eny beginning inventory. ir so board feat are required for each bookcase and the waod costs $2 per board foot, how much wil Marval pay for the bookcases t neads produce during the querter Mite Chee sa1os.000 sa900.000 S405000 SEO0000
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O Chapter 14 + A Not secure | learninghub.upm.edu.my/blastdk/pluginfile.php/161772/mod_resource/content/2/ECN%203014%209_Monetary%20Policy%20and%20Federal. E Apps 4 Marketing Strategy. NGDATA | How to R.. G how to keep custo... W Promosi Dalam Pe. e Bijak keewangan da. e OH! My Assignmen. 2 The 4 Ps Definition O Other bookmarks Chapter 14 14 / 29 Principles of Money Supply Determination Currency held by the nonbank public, CU $1,575.9 billion Bank reserves, RE S $2,022.5 billion Deposits, DEP $12,395.1 billion What is the money multiplier? + 9:43 PM P Type here to search G 4») ENG 19/01/2021
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Google Password Required G Enter your password for "210352" in Internet Accounts. Rapidldenti x CClever | Tea X Content Ch. 14 Read x D Nathan Mej x S Savvas Real iin. A southtexascollege.blackboard.com/ultra/courses/_297686_1/cl/outline?legacyUrl=%252Fwebapps%252Fblackboard%25.r 10 YLQ1 Y1Q Y103 Y1Q4 Y2Q1 Y202 ¥2Q4 Y3Q1 Y3Q2 2) Part A: Why must double counting be avoided when measuring GDP? Provide an elaborate answer with at least one example. Part B: Aggregate Demand (AD) Curve shows the relationship between the economy's price level and real GDP demanded. In other words, real GDP demanded by different groups of buyers, i.e., Consumers (C), Businesses (1), Government (G), and Net Amount by Foreigners (Export - Import), at different price levels give us points on a graph, which are connected to form a curve called AD curve. Review the textbook chapter, and conduct internet research to discuss determinants of AD or factors that shift AD curve. Part C: Following graph shows business…
Marvel Woodcraft makes fumiture. Marvars expected sales are 21000 bookcases for the quarter. The company begins the quarter with invertory of 3,000 bookcases and warts te heve enough finished beokceses en hand et the end of the auener to provide for 15N of the nest querter's enoected seies of 27000 bookcases. gnoring any begirving iventory r so board feet are required for anch bookcase and the wood costs $2 per board foot, how much will Marvel pay for the bookcases a neads produce during the querter Mte Choe SA o s2900.000 S405.000
u.om/mod/quiz/attempt.php?attempt3D1579003&cmid%=812962&page%3D19 System (Academit oles of Microeconomics Spring20 fall20 Price MC ATC of P2 P3 stion Q, Q2 Q3 Quantity/time MR Refer to the above figure. Economic profits for this firm are Select one: O a. undetermined without more information. O b. zero. C. positive. O d. negative. pe here to search hp
3. Which of the following must be included in an organization’s statement of accounting profits for the statement to be of use?a. the estimated amount the organization could have earned pursuing other optionsb. the extent to which technological improvements increased productivityc. the percentages planned for reinvestment or distribution to investorsd. the period in which the profit was earned, such as a year or a quarter
If you want to measure the performance of your investment in a fund, including the timing of your purchases and redemptions, you should calculate the __________. a. geometric average return b. arithmetic average return c. dollar-weighted return d. index return Don't answer by pen paper and don't use chatgpt otherwise we will give dounvote