Sallie's Sandwiches​Sallie's Sandwichesis financed using 20% debt at a cost of 8%. Sallie projects combined free cash flows and interest tax savings of $2 million in Year 1, $4 million in Year 2, $5 million in Year 3, and $117 million in Year 4. (The Year 4 value includes the combinedhorizon values of FCF and tax shields.) All cash flows are expected to grow at a 3% constant rate after Year 4. Sallie'sbeta is 2.0, and its tax rate is 34%. The risk-free rate is 8%, and the market risk premium is 4%. Using the data for Sallie's Sandwiches andthe compressed adjusted present value model, what is the total value (in millions)? Group of answer choices$72.37 $73.99 $74.49 $75.81 $76.45 Quizlet

Answers

Answer 1

Answer:

$76.45

Explanation:

Sallie Sandwiches used hybrid financing which means debt and equity both are used to finance business. The company's cost of financing will be;

Cost of debt : 8% + [ 2.0 * 4%] = 16%

Cost of financing : [0.2 * 8%] + [0.8 * 16%] = 14.4%

NPV discounted at 14.4% is $76.45


Related Questions

Factories that produce smartphones can also produce smart watches. Which of the following events in the market for smartphones illustrates the law of supply?
1. The price of a smart watch falls.
2. A new robot technology lowers the cost of producing smartphones.
3. The price of a smartphone falls.
4. The price of a smartphone is expected to rise next year.
5. The wage rate paid to smartphone factory workers increases.
A, Event #1 only
B. All 5 events listed
C. Events #1, #4, and #5
D. Events #2, #3, and #4
E. Event #3 only

Answers

Answer:

e

Explanation:

according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.

Only a change in the price of he good affects the law of supply

When The price of a smartphone falls, quantity supplied falls

other factors lead to a change in demand

What kind of inventory tracking system shows the cost and gross profit margin in each item?

Unit-control systems

Dollar-control systems

Manual tag systems

Radio frequency identification systems

Answers

Answer:

hola its jess !!

answer is here:-

Dollar-control systems show the cost and gross profit margin on individual inventory items.

hope it may help you!!

Write any four benefits of working in a positive workplace.

Answers

Answer:

1. Self-comfort

2. Get interested

3. Get interacted with others

4. Having good work.

Research three ways a business can promote products and services and describe the strengths and weaknesses of each.

Answers

Answer:

Promotions is the part of marketing that specifically involves communicating company or product information to targeted customers. This is a key component of the broader marketing system, because it is what usually makes customers aware of you, attracted to your brand, interested in buying and ultimately, loyal customers. Advertising, public relations and personal selling are three staple methods of promotion, though some new techniques have emerged in the early 21st century.

Advertising

Advertising takes up a significant portion of a company's budget allocated toward marketing and promotion. It includes the development and paid delivery of brand or product messages through media. Companies usually have internal advertising departments that design and develop ads, or they work with advertising firms who specialize in the advertising process. Since you pay for ad placement in media such as television, radio, newspapers and magazines, you generally have more control over the message than you do through some other promotional methods.

Public Relations

Maintaining goodwill with the public is an important long-term strategy for both small and large companies. A variety of public relations tactics are used to reach out to customers through unpaid-for media messages. Press releases are one of the most common and routine PR tactics. This is when a company sends an overview of a major change or event, product launch or other news to various media outlets. Press conferences, features news reports and newsletters are other common PR tools. A general objective of PR is to keep your brand in front of people even beyond paid ads. The challenge is you can't always control the way your PR messages are delivered or received.

Selling

While business typically engage in some level of advertising and public relations, the use of personal selling tactics varies considerably. Some small businesses don't employ active sales associates based on the small-scale products or services they sell. Companies with big-ticket items, such as electronics or appliances, more often use sales associates to stress the benefits of products to customers and to overcome their concerns. Selling is one of the most interactive forms of promotion.

 

Advertising, public relations and personal selling can promote products and services and describe the strengths and weaknesses of each.

What is a business?

Business refers to the activity of creating, purchasing, and reselling goods in order to support oneself financially.

Advertising: A considerable amount of a bank's advertising and development budget is spent on advertising. The majority of businesses either use internal advertising teams to create and develop their ads or they contract with external ad agencies who specialized in the process of marketing.

Public Affairs: Keeping the public's trust is a crucial long-term approach for businesses of all sizes. Customers are reached through unpaid media messaging using a range of public marketing strategies. Among the most common and conventional PR strategies is the press release.

Selling: While businesses usually participate in some form of advertising and promotion, the utilization of personal selling techniques varies greatly. Because they provide such low-volume goods or services, several small enterprises don't have active sales representatives.

Learn more about business, here:

https://brainly.com/question/15826604

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The government in Chile recently informed Clint Travis' company that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by the year 2050. Additionally, starting next year fifty percent of the board of directors of the Chilean operation of the company must be Chileans. Which of the following political risk actions is Mr. Travis' company facing in Chile?
A. Confiscation
B. Expropriation
C. Domestication
D. Patronization
E. Socialization

Answers

Answer:

Option C

Explanation:

In simple words, Domestication happens when host nations gradually shift foreign capital to indigenous administration as well as possession through with a succession of governmental decrees that mandate local ownership and increasing national participation in administration.

Hence, from the above we can conclude that the correct option is C.

How can business activity affect the government?

Answers

Businesses often engage in a variety of tactics to influence government policy. This includes lobbying, political contributions, and interest group politics.

Name the market structure in which agriculture farming operate​

Answers

Answer:

primary sector involves agricultural stuufs

hope it is helpful

are you smart enough to do that task try it who is the first person made the light

Answers

Joseph Swan but Thomas Edison later capitalized on the invention by improving it

Maddie noticed that many students on campus had t-shirts and sweatshirts with Greek organization letters or club names on them. Recognizing that there was a huge market for this attire, Maddie rented a store front and a silk screening machine to get into the t-shirt business. Maddie's rent is $1,000 a month, including utilities. The silk screen machine leases for $300 a month. Maddie can buy blank t-shirts for $6 each and sweatshirts for $10 each. Maddie calculated the cost of materials for the silk screening at $2 per unit. If Maddie sells a screened t-shirt for $15 and a sweatshirt for $25 each, which would she prefer the customer purchase?
A) Sweatshirt because the contribution margin is higher
B) T-shirt because the cost of production is lower
C) Sweatshirt because the selling price is higher
D) T-shirt because the contribution margin is higher

Answers

Answer:

D

Explanation:

Contribution margin is the level of output at which revenue would equal zero

Contribution margin = fixed cost / (price - variable cost)  

fixed cost = 1000 + 300 = 1300

variable cost :

t shirt = 6 + 2 = 8

sweats = 10 + 2 -= 12

1300 / ( 15 - 8) = 185.71

1300 / ( 25 - 12)

Dobris Networks Inc. provides network traffic awareness, analysis, and control solutions for broadband service providers in USA. The company plans to expand its business in Austria. The directors of the company want a group of top level managers to take a call on the expansion strategy by studying the situation on hand. The task assigned to the group is an example of _____ tasks.

Answers

Answer:

D. intellective

Explanation:

The Intellective task is the task that includes the group capability for making the decision or the judgement

Since in the given situation it is mentioned that the company directors wants the group of the top level manager where the expansion strategy should be called via having the situation on the hand so here the task allocated to the group represent the example of the intellective task

Germany and the U.S. both produce cars and airplanes. The U.S. has the comparative advantage in producing airplanes if a. the opportunity cost of producing an airplane is lower for Germany. b. Germany requires fewer resources than the U.S. to produce an airplane. c. the opportunity cost of producing an airplane is lower for the U.S. d. the U.S. has an absolute advantage over Germany in producing airplanes.

Answers

Answer:

Option C

Explanation:

In simple words, The capacity of a country to provide a certain item or service at a lower opportunity expense than its trade rivals is known as comparative advantages.  A comparative advantages allows a firm to sell goods as well as services at a cheaper cost than its rivals while maintaining higher profit margins.

Thus, from the above we can conclude that the correct option is C.

As the CEO of your company, you can use only the planning and controlling functions to reach your organizational goals.
Select one:
O True
O False

Answers

Answer: False

Explanation:

CEOs are top management and top management use all five functions of management to ensure that the company reaches its goals and objectives.

The CEO has to use planning to to decide what long term strategies the company will use to achieve its goals. They have to use controlling to evaluate and improve the methods the company is taking to achieve its long term goals.

They also have to use staffing to hire the best top level and middle level talents that can push the company forward. As management they have to use leading to get the employees inspired to move the company forward and finally they will use organizing to put the various processes in the company together to ensure that the company's goals are met.

Matching Question Match the following strategies for selling products globally with the correct definition. Product extension Product extension drop zone empty. Product adaption Product adaption drop zone empty. Product invention Product invention drop zone empty. Creating a totally new product to satisfy common needs across countries. Selling virtually the same product in other countries. Changing a product to make it more appropriate for a country's climate or consumer preferences. Need help

Answers

Answer:

1. Product invention.

2. Product extension.

3. Product adaptation.

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

1. Product invention: it involves creating a totally brand new product to satisfy or meet common consumer needs across countries.

2. Product extension: it involves selling virtually the same product in other counties i.e sales of product that are the same in various countries.

3. Product adaptation: it involves changing a product in order to make it more appropriate or convenient for a county's climate or consumer preferences.

All of the following are skills needed by an accountant except: O Communication O Time management O Speed O Critical Thinking​

Answers

Answer:

O Speed.

Explanation:

An accountant is someone who keeps an account of the financial records of a person or a business. They are responsible for performing accounting functions such as analyzing accounts, auditing, and reporting the financial transactions of a person or a business.

Among the various skills needed to be an accountant, speed is not one of them. Communication, be it oral or written is one important aspect of the requirement while time management and critical thinking are also important aspects of an accountant.

Thus, the correct answer is the third option.

The following events occurred last year at Dorder Corporation: Purchase of plant and equipment $ 45,000 Sale of long-term investment $ 24,000 Dividends received on long-term investments $ 9,000 Paid off bonds payable $ 12,000 Depreciation expense $ 32,000 Based on the above information, the net cash provided by (used in) investing activities for the year on the statement of cash flows would be: Multiple Choice $(32,000) $(69,000) $(12,000) $(21,000)

Answers

Answer:

$(21,000)

Explanation:

The computation of the  net cash provided by (used in) investing activities is shown below:

Cash flows from investing activties

purchase of plant and Equipment = -$45,000  

Sale of long term investment $24,000  

net cash used by investing activities - $21,000

Hence, the last option is correct

Horizontal, vertical, and related acquisitions to build market power: Group of answer choices are likely to undergo regulatory review by various governmental entities. are rarely permitted to occur across international borders. concentrate on capturing value at more than one stage in the value chain. typically involve a firm purchasing one of its suppliers or distributors.

Answers

Answer:

likely to undergo regulatory review by various governmental entities.

Explanation:

A horizontal acquisition refers to the business strategy where the one company could take the other company that operates at the similar level while on the other hand the vertical integration is the integration where the business operation could be acquired with the similar kind of production

So these types of acquisition should established the market power through which the regulatory review could be undergone via a different government entities

please can u explain 5 types of ledgers​

Answers

Answer:

1. Sales ledger

2. Purchase ledger

3. Cash ledger

4. General ledger

Answer:

What is professions in nepal

Last year, Alfred earned $5,000, Betty earned $50,000, and Charlie earned $500,000. If they all pay a 35% tax on all their incomes, the tax would be described as a(n)
a progressive
b proportional
c excise
d regressive

The Federal Reserve can alter the business cycle through the use of
a monetary policy
b commercial banks
c fiscal policy
d unemployment legislation

The purpose of expansionary fiscal policy is to
a prevent hyperinflation
b increase the separation between Government and private industry.
c Increase output (GDP)
d slow the growth of GDP

Answers

Answer:

b. proportional

a. monetary policy

c?. increase output?

Explanation:

Hesitant on #3 because it could technically be considered a as well, but c marks its primary purpose.

mention any five types of small-scale retailers​

Answers

Answer:

Retail trade is carried on both at small scale and large scale. Small scale retailers are either mobile traders (itinerants) or fixed shops. Mobile Traders or Itinerants These retailers have no fixed place of business. They move from place to place and sell articles of daily use near to consumers. These include the following:Explanitaion:

1. Hawkers: A hawker moves about in residential localities. He carries his goods in a hand cart or bicycle. He deals in low-priced goods of daily use. E.g. combs, toys, soaps, mirrors, bangles, vegetables, fruits, ice-cream, etc. Read more on Sarthaks.

2. Peddlers: A peddler also moves from house to house and sells articles of daily use. But he carries his wares on his head or on the back of a mule. Read more on Sarthaks.

3. Cheap Jacks:A cheap jack hires a small shop in a residential locality for a temporary period. He shifts his business from one locality to another depending on the availability of customers. He deals in low-priced household articles. Read more on Sarthaks.

4. Pavement dealers or Street Traders: A pavement dealer displays his wares on footpath and outside public places such as railway station, bus stand, cinema, temple, etc. He sells low priced articles like newspapers, magazines, fruits, vegetables, footwear to the passersby. He is also called street trader. Read more on Sarthaks.

5. Market Traders:

A market trader sells goods at weekly markets when the shops are closed for weekly holiday. He displays goods outside the closed shops. He deals in lowpriced articles of daily use. He may also set up stalls on fairs and exhibitions. Fixed Shops (Small Scale Retail Shops) Small scale retail shops are the most popular form of retail trade. Read more on Sarthaks.

HOPE IT HELPS

meaning of accounting​

Answers

Answer:

Accounting is the process of recording financial transactions pertaining to a business. 

Which of the statements below is​ FALSE? A. A problem with using the dividend growth model is that it appears to underestimate the expected return for some stocks B. A problem with using the dividend growth model is that it produces a negative expected return whenever a firm cuts its dividends. C. A problem with using the dividend growth model is that it appears to underestimate the expected return for all stocks. D. The dividend model requires that a firm have a cash dividend history and that the dividend history shows a constant dividend or a positive growth in dividends.

Answers

Answer:

C. A problem with using the dividend growth model is that it appears to underestimate the expected return for all stocks.

Explanation:

In the case of the dividend growth model, it shows the underestimated of the return for some stocks, also it generated the negative return at the time when the firm could cut the dividend. ALso it needs that the firm has the history of the cash dividend and that history should show the same dividend or the positive growth

But it does not show the underestimate for all kind of the stocks

Lightning strikes one of Christy’s trees in her backyard and starts a fire that spreads to two other trees before firefighters are able to put it out. The fire department charges her $600 for responding to her call. Christy’s DP-2 policy has a Coverage A limit of $95,000. What is the maximum amount of indemnification that Christy can expect to receive for this loss (ignoring any deductible)?

Answers

Answer:

$2000

Explanation:

The maximum amount of indemnification that Christy can expect to receive for the loss = $2000

Given that Indemnity is the payment made to an insured person that will cover the exact cost of the loss suffered

limit of Christy's DP-2 policy = $95,000

Cost of damages charged by fire department = $600

This is a partial loss  ( not considering depreciation )

Replacement cost = $95,000

assume percentage of loss = 2.1%

Max amount of Indemnification = 2.1% * 95,000 =  $1995 ≈ $2,000

Football Contractors, INc., which reports under US GAAP, has contracted to build a stadium for the City of Washburn. The contract price is $100 million and costs are estimated at $60 million. Costs are not assured, however, because there is a material risk, which Football Contractors has assumed, that ground water problems might slow construction and increase costs by as much as $40 million. In 2004, the first year of the agreement, Football Contractors, Inc. billed $30 million, received $20 million payment, and incurred $15 million in costs. For 2004 Football Contractors, INc. should recognize revenue from the CIty of WAshburn transaction in the amount of:
A) $0.
B) $30 million.
C) $20 million.

Answers

Answer:

The answer is A. $0

Explanation:

It is stated in the question that the total costs to completely deliver this contract has not been clearly defined due to uncertainty in ground water problem.

Thus, the method should be applied under US GAAP in this situation is complete contract method which indicates that No revenue should be recorded until the contract is completed and the total cost to deliver contract is defined.

Thus, in 2004, the revenue from contract is not recorded at all which gives us the answer to be A. $0

Answer:

A) $0.

Explanation:

Under the US GAAP, when there are uncertainties surrounding costs and cannot be estimated reliably, the completed contract  method would be applied.

Completed contract method means that no revenue would be recognized on the contract until contract completion, in other words, Football Contractors, Inc. should not recognize any revenue e from the CIty of Washburn transaction in the year 2004.

In short, the correct option is A with $0 revenue in the year 2004.

Which part of an insurance application will contain information regarding the cause of death of the applicant's deceased relative

Answers

Answer:

Medical Information

Explanation:

Medical Information of the application includes certain information on the  insured's prospective medical background, his or her present health conditions, any kind of visits to the medical in the recent years, the medical status of the living relatives, and also causes of death of the deceased relatives.

The medical information are used by the insurance companies to underwrite the policies.

Domestic production is also known as? 
(a) Surplus
(b) Local
(c) Traditional
(d) Subsistence​

Answers

Answer:

Domestic production is also known as (d) Subsistence.

Explanation:

Gross Domestic Product (GDP) is the final monetary value of the goods and services produced within the country during a specified period of time, normally a year. In simple terms, GDP is the measure of the country's economic output in a year.

It’s also known at Subsistence D

A co-worker who has to leave work early to deal with a personal matter asks that you complete some time-sensitive paperwork and turn it into your supervisor before leaving at the end of the day. You agree and urge your co-worker to leave in order to address his personal matter, assuring him it will be taken care of. At the end of the day, you neglect to carry through on your promise and do not complete the paperwork. The next day, your supervisor chastises your co-worker, indicating that a reprimand will be placed in their personnel file because of the failure. Your co-worker does not disclose that you had promised to complete the work. Using the Golden Rule as a guideline, you should: _______.

Answers

Answer:

intervene and tell the supervisor you had assumed responsibility for the paperwork and forgot

Explanation:

The golden rule is based on a principle of reciprocity and it states that one should treat others the way they want to be treated.

Different religions overtime have the same principle embedded in their doctrines.

In the given scenario where a coworker told you to compete some work for him before leaving and you failed to do so, when the coworker is being reprimanded you should take responsibility for the paperwork and say you forgot.

This is only fair on your coworker seeing it wasn't his fault the work was not done.

Also when you treat people fairly you can also be expected to be treated fairly too.

points and freind requsts

Answers

Answer:

Thank you so much for points I will be your friend............

If the actual unemployment rate (U) is greater than the natural rate of unemployment (UN), a(n): Multiple Choice recessionary gap exists and actual real GDP (QE) is less than natural real GDP (QN). inflationary gap exists and actual real GDP (QE) is greater than natural real GDP (QN). inflationary gap exists and actual real GDP (QE) is less than natural real GDP (QN). recessionary gap exists and actual real GDP (QE) is greater than natural real GDP (QN).

Answers

Answer:

Option b (Inflationary gap.....(QN)) is the correct option.

Explanation:

Unemployment rates naturally are not dependent upon business price movements. Everything just necessarily leads to friction as well as structure.Whenever natural rates are below official unemployment, therefore inflation seems to be on the way to the industry, this same manufacturing sector overheats or the actual growth rate is higher above inflationary pressures throughout economic growth.

There are three more alternatives that do not connect to the circumstance. Thus, the solution is right.

Vance, a marketing major, was helping his sister develop her retail shop. Her business was not thriving, and Vance quickly determined that trying to please everyone was pleasing no one. Together they worked out an approach where she would identify groups of customers who had similar needs, and then work with each group to meet their needs. This basic process in marketing is called

Answers

Answer:

"Marketing segmentation" is the appropriate answer.

Explanation:

The technique of dividing large operations into communities having shared requirements, specifications as well as preferences, would be considered as Marketing segmentation.However, it is founded upon this notion that within an attempt to maintain their competitive edge as well as improved flexibility, organizations should identify organizational process categories.

Thus, the above is the correct response.

An economy can produce either guns or butter with all available resources. Suppose it currently produces all butter and it chooses to produce some guns, thereby giving up some production of butter. As a result, the first 200 units of guns are produced at the cost of only 50 units of butter. Not surprisingly, the next 200 units of guns are produced at the cost of 150 units of butter and the last 200 units of guns at the cost of 300 units of butter. What does this describe?

Answers

Answer: The law of increasing opportunity costs

Explanation:

The scenario given describes the law of increasing opportunity costs. This law explains that when there's an increase in output in the production of a good, this will then bring about a scenario whereby the opportunity costs of the additional units of the other good will then be less.

As there is an increase in the production of one good, then this will lead to the increase in the opportunity cost of producing the next unit.

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In 1990, the cost of tuition at a large Midwestern university was $95 per credit hour. In 1999, tuition had risen to $221 per credit hour. Determine a linear function C(x) to represent the cost of tuition as a function of x, the number of years since 1990 C(x)= *answer here* Trong k gian vecto R^3 , cho h B={u(2,1,-1),v=(3,2,5) , w=(1,-1,m)} a)xc nh gi tr m B l mt c s k gian R^3 The amount that two groups of students spent on snacks in one day is shown in the dot plots below.Group AA dot plot titled Group A. A number line going from 0 to 5 labeled Amount in Dollars. There are 0 dots above 0, 5 above 1, 4 above 2, 1 above 3, and 0 above 4 and 5.Group BA dot plot titled Group B. A number line going from 0 to 5 labeled Amount in Dollars. There is 1 dot above 0, 3 above 1, 3 above 2, 4 above 3, 1 above 4, and 3 above 5.Which statistical measurements are $1 or less between Group B and Group A? a square garden has an area of 6400 square find its perimeter CAN SOMEONE HELP ME PLZ the surface bedrock at which location is most likely to contain this fossil? what is school based assessment what is the equation of the following graph in vertex form? Which of the following is true about writing meeting minutes? A. Meeting minutes are a word-for-word account of everything said during a meeting.B. Meeting minutes are a record of which meetings will occur during the week. C. Meeting minutes are a written record of items discussed and votes taken during a meeting. D. Meeting minutes are a record of exactly how many minutes a meeting lasted. Which music professionals might perform on radio? I need help ASAP. I will give brainliest. I NEED HELPPPPPPPPPP PLSS PLEASE HELP ME PLEASE HELP ME PLEASE HELP ME PLEASE HELP ME PLEASE HELP ME in what ways was the British rule before 1857 causing disconnect and resentment among the indias What is the difference between nomads and hunter-gatherers of ancient times? Is this the correct answer 1. Which is a time/temperature control for safety (TCS) food?Snack crackersA-Unopened canned foodB-Fresh poultryC-Individually packaged condiments the fraction 6/10 is equivalent to which of the following? 12/24 or 24/40 or 3/6 or 16/20 Solve it !![tex]78 + 2 \div 2[/tex] How does note taking impact your learning Which choice is equivalent to the fraction below when x is an appropriate value? 4/4-sqrt(6x)