Homework Answers
Cost of debt is a determinant of capital.
Sales Revenue = $400,000
Less: Operating Costs = $45,000
Less; Cost of Capital = 20,000*15% = $3,000
Annual Free cash flow = $352,000
Funadamental Value = $352,000/0.15 = $2,346,667
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8. Determinants of intrinsic value Aa Aa Which of the following is a determinant...
please answer 8. Determinants of intrinsic value Aa A Which of the following is a determinant...
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8. Determinants of intrinsic value Aa A Which of the following is a determinant of a firm's cost of capital? O Cost of debt Education of managers Sales revenues The following table presents some of the current year's financial data for the Happy Giraffe Construction Company. Complete the table by computing Happy Giraffe's free cash flows and fundamental value (rounded to the nearest whole dollar) based solely on this year's information: Value $400,000 $45,000 $20,000 1590 $335,000 $2,233,333...
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Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more. Aa Aa 8. Determinants of intrinsic value Which of the following is a determinant of a firm's cost of capital? O Sales revenues O Cost of equity O Education of managers The following table presents some of the current year's financial data for the Green Zebra Media Company. Complete the table by computing Green Zebra's free cash flows and fundamental value...
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