You have been just hired as CEO of Bitter Inc., a conglomerate that operates in
three businesses. The details of the businesses are provided below:
Entertainment
Movie Theaters
Travel Services
Company
Revenues
$450
$400
$325
$1,175
Operating Income (next year)
$200
$85
$95
$380
Effective tax rate
36%
20%
36%
32.42%
After-tax Operating Income (next year)
$128
$68
$61
$257
Invested Capital
$525
$375
$125
$1,025
Expected Growth Rate
3.50%
3.50%
3.50%
3.50%
Cost of capital
11.00%
9.25%
8.00%
10.25%
a. What is the value of the consolidated company, using the combined company’s cash flows and cost of capital?
b. What is the value of Bitter as the sum of its parts, using the divisional cash flows and the industry average cost of capital for each division?
c. If you are getting a different value for Bitter in part b, where is the difference coming from?
A conglomerate discount is being applied by the market.
The broken-up businesses will be run more efficiently as stand-alone units.
The combined company has a less optimized capital structure than that the individual units could have.
The broken-up businesses will pay less in taxes than the combined company.
The broken-up businesses will have higher growth than the combined company.
All of the above.

Answers

Answer 1

A conglomerate that operates in three businesses the Operating income consolidated company is worth $1,22778. The correct answer is The broken-up businesses will be run more efficiently as stand-alone units that the individual units could have.

A) Mirra is worth $1,242.22 when its component components are added together. Using the industry average cost of capital for each division rather than the total cost of capital is the cause of the disparity in values.

B) To figure this out, we must first get the entire operating revenue after taxes ($64+$24+$32) and divide it by the total cost of capital (9%).

C) To arrive at this valuation, we value each segment independently using its own cash flows and the typical industry capital costs: movie entertainment ($100/10%), travel services ($24/8%), and theatres ($32/7%).

D) This strategy better takes into account the distinct risks and expansion opportunities of each division.The broken-up businesses will have higher growth than the combined.

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Related Questions

As an advertising manager of a company, you have been asked to write a proposal stating why the company should advertise and it's benefits to the company

Answers

Answer: Advertising helps expand the market of the company to have more people to know about the product

Explanation:

Proposal for advertising; My firm, xyz cooperation would love to handle the publicizing aspect of your product while you go ahead your business. We have been into these business for about 20years, so we understand the challenges that comes with the business and how they are tackled. We are creative and emerging with our services, as we offer them with reasonable and affordable prices, do read through our profile as we look forward working with you

Benefits;

1) We expand your market when we advertise for you

2) We brand your firm with a new look and make consumers get attracted

3) We offer a discount of 15% for new firms and subsequently 5% for consistent customers.

To buy a product, customers in a market must first

Answers

To buy a product, customers must first have the need for the product.

Customers cannot just simply buy anything or everything when it comes to products. People love shopping but money is a very useful and powerful resource and customers understand it well, so they don't want to spend it on useless things.

Firstly, there should be a need or a desire to buy a particular product. After that the customer decides his or her budget or the money he would like to spend on that product. If it crosses his or her budget, then the customer may not able to buy the product.

Lastly, there should be willingness to buy the product. Nowadays, we get impressed by big brands, malls and stores giving us immense discounts for even our daily needs. That is how knowingly or unknowingly, we tend to shop more.

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If a property appreciated 2% in the past year, how much would the property be worth today if it was valued at $220,000 a year ago

Answers

The value of the property today after it has appreciated in value is $224,400.

What is the value of the property today?

When a property appreciates in value, it means that it becomes more valuable to own the property. The property becomes more expensive when it appreciates.

Value of the property = (1 + appreciation) x initial alue

1.02 x $220,000 = $224,400.

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Imagine that you are serving as the general manager of a hotel. What three aspects do you think would be most important to the success of your hotel? How would you improve these facets of your hotel?

Answers

Answer:

1. Create and give innovative experience.

2. Brand and reputation operation

3. Improvement in workers general welfare

Explanation:

As a manager in an hotel, I would Improve the facets of the hotel by

1. Create and give innovative experience. As a manager, I would ensure the hotel create and delivers top notch service considering there are competition in the hospitality industry.

2. Brand and reputation operation. When customers receives a world class experience, reputation is being created here. I would then sustain this reputation by making it a brand upon which the hotel will be identified with subsequently.

3. Improvement in workers general welfare. This is very critical to the success of the hotel. Once workers are well paid , it would spur them to work and align with the vision I have for the hotel.

Make a list of getting information about employment an publishes.

Answers

( GETTING LIST OF INFORMATION ABOUT EMPLOYMENT AND PUBLISHES : )

-Personal contacts.

-School career planning and placement offices.

Classified ads.

-National and local newspapers. Professional journals.

-Trade magazines.

-Internet networks and resources.

-State employment service offices.

-Federal government.

-Professional associations.

-Labor unions.

what is Photosynthesis?

Freé points -,-

Answers

Answer:

photosynthesis is a process by which green plants prepare their own food with the help of sun light and chlorophyll.

Answer:

the process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water. Photosynthesis in plants generally involves the green pigment chlorophyll and generates oxygen as a by-product.

What is reality???????????????????????????????

Answers

Answer:

Reality is a state of consciousness and awareness whereby one can feel and comprehend his himself and his mind and his soul to live in.

WARNING: if this is your exam question, please you might not pass with this answer. lol

Hope this helps

Good luck ALWAYS ✅.

Strategic decisions consider, in part, uncertainty and complexity.- True- False

Answers

Strategic decisions take into account many factors, but uncertainty and complexity are not necessarily considered.

Strategic decisions are aimed at creating long-term value and are based on assessing current and future opportunities and threats. While uncertainty and complexity may be a factor that influences strategic decisions, they are not the only elements to be considered.

Other factors include the organization's mission and vision, its goals and objectives, the competitive landscape, industry trends, political and economic environments, and the organization's capabilities. Strategic decisions are made with the understanding that the future is unpredictable, but they are also made with the knowledge that the organization can use the available data and resources to make the best possible decision for the future.

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Amiri, who belongs to the Maori tribe, aspires to be a deputy sheriff in Upper Elm County. Amiri sports a small moko tattoo across his cheeks and nose as a symbol of his heritage. Per the dress code, however, sheriffs are not allowed to have any visible tattoos. Amiri is told that he will need to remove his tattoo before he can apply to be a deputy sheriff. Which of the following will hold true in this scenario?

a. Amiri will prevail in a national origin discrimination claim under Title VII of the Civil Rights Act of 1964 because his tattoo honors his heritage.
b. Upper Elm County can defend itself against Amiri's claim if it can be shown that the tattoo overlaps with his religion.
c. Upper Elm County can defend itself against Amiri's claim because a dress code is permissible under Title VII of the Civil Rights Act of 1964.
d. Amiri will prevail in a national origin discrimination claim if he uses the bona fide occupational qualification defense to show that his tattoo does not disrupt the dress code.

Answers

I believe that the answer is B

The following will hold true in this scenario Upper Elm County can defend itself against Amiri's claim if it can be shown that the tattoo overlaps with his religion.

What is religion?

Religion is commonly defined as a social-cultural system of specified behaviors and practices, morals, beliefs, worldviews, texts, sanctified places, prophecies, ethics, or organizations that generally relate humanity to supernatural, transcendental, and spiritual elements; however, there is no scholarly agreement on what precisely constitutes a religion.

Amiri's accusation can be refuted by Upper Elm County because Title VII of the Civil Rights Act of 1964 permits dress codes. The Maori tribe member Amiri wants to work as a deputy sheriff in Upper Elm County.

Therefore, Thus option (B) is correct.

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1. What is the author trying to say in comparing Becky's world with Desta's world?

Help me

Answers

Answer:

The author is trying to say that the living standards of different classes of people depend on the economic choices they make and the economy of the nations they find themselves in.

Explanation:

The topic, "Mathematics and Economic Reasoning," began by comparing the world's of two girls namely Becky and Desta. Becky who lives in America has a good and comfortable living standard. Her father works at a good law firm where he earns well enough to cater for his family. He has some savings, insurance, two cars, and a partially mortgaged house.

Desta, on the other hand, lives in a poor village in Ethiopia where her family depend on farming to survive. They have no running water, electricity, adequate healthcare, enough food, etc. The author drew these comparisons to show that the environment a person finds himself can affect his economic standard of living.

Etsy Shop: Eclipseshoppee

I FOUND THIS STORE ON ETSY AND IT IS SOOOO AMAZING!!! PLEASE GO CHECK IT OUT FOR YOUR OWN SAKE!!

Answers

Thanks this sounds really cool

QUICK!!

When a marginal propensity to import is introduced to the open income model of the economy,

A. an additional leakage will limit economic expansions.

B. equilibrium income will not be affected.

C. economic growth will tend toward trade surpluses.

D. exports must necessarily be reduced.

Answers

When a marginal propensity to import is introduced to the open income model of the economy:

A. an additional leakage will limit economic expansions.The correct answer is A.

An additional leakage will limit economic expansions. The marginal propensity to import represents the fraction of additional income that individuals or businesses choose to spend on imports rather than on domestically produced goods and services. This implies that when income increases, a portion of that increase will be spent on imports, which effectively leaks out of the domestic economy. As a result, the introduction of a marginal propensity to import will limit the expansionary effect of an increase in income, as a portion of the additional income will be absorbed by imports and not contribute to domestic economic activity.

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F. What effect does a low unemployment rate have on business? what effect does a high unemployment rate have on business?

Answers

Answer:reduces the productivity of the company as a whole<3

Explanation:

It comes when there's an increase demand for labor because of low unemployment. With less people available for work, employers have to increase their wages to find, and keep, employees. This can cause some organizations to settle for less-talented workers, which again reduces the productivity of the company as a whole

The effect of low unemployment rate on business is that the productivity of business will fall, and the effect of high unemployment rate on business is that the productivity of business will raise.

What is unemployment rate?

The unemployment rate refers to the state of being unemployed. The unemployment rate is derived by dividing the total number of people in the labor force by the number of people who are jobless.

The labor force is the total number of people who are employed and unemployed. A low unemployment rate has the impact of lowering business productivity, whereas a high unemployment rate has the effect of increasing business productivity.

Therefore, the unemployment rate is defined as the state of being unemployed.

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Florence deposits 6000 in an ordinary annuity at the end of each quarter in an account earning 6 percent interest coumpund

Answers

The future value of the account in 2 years will be $19,101.6. if Florence deposits $6000 in an ordinary annuity at the end of each quarter in an account earning 6% interest compound.

The given data is as follows:

deposits money = $6000

interest compound = 6%

Time peroid = 2Years

Future value also called Ordinary Annuity is a term used to explain at some coming date and with a shared interest rate, a sequence of normal prices will be worth it.

The Future Value is calculated by using the formula:

FV  = C [{ (1+i)^n - 1}/i]

Future Value = 6000 [{ (1+i)²- 1}/0.06]

Future Value = 6000 [(1.06)² - 1]/0.06

Future Value = 6000  [1.191016 - 1]/0.06

Future Value = 6000 x (0.191016/0.06)

Future Value  = 6000 x 3.1836

Future Value = $19,101.6

Therefore, we can conclude that the future value of the account in 2 years will be $19,101.6.

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The complete question is-

Florence deposits 6000 in an ordinary annuity at the end of each quarter in an account earning a 6 percent interest compound. What is the future value of the account in 2 years?

Answer:

$6021.60

Explanation:

6000+(6000×0.6^2)

=6000+21.6

=6021.

How many different federal taxes are listed?

Answers

Answer:

There are two types of taxes namely, direct taxes and indirect taxes.

Explanation:

12 specific taxes, four within each main category—earn: individual income taxes, corporate income taxes, payroll taxes, and capital gains taxes; buy: sales taxes, gross receipts taxes, value-added taxes, and excise taxes; and own: property taxes, tangible personal property taxes, estate and inheritance taxes, and wealth taxes.

Answer:

2!

Explanation:

direct taxes and indirect taxes! hope this helps! plz mark as brainliest!

In the Month of March, Baldwin received orders of 156 units at a price of $15.00 for their product Bolt, and in April receives an order for 39 units of their product Bolt at $15.00. Baldwin uses the accrual method of accounting and offers 30-day credit terms. Baldwin delivers 0 units in March, 156 units in April and 39 units in May. They received payment for 156 units in April and payment for 39 units in May.

Required:

How much revenue is recognized on the March income statement from this order?

Answers

I think the answer is (66 I got Thai chicken salad and a wonderful meal so 3+2= 7

at the beginning of the year, custom manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $580,000, and direct materials costs, $200, year-end, the company reports that actual overhead costs for the year are $588,200 and actual direct materials costs for the year are $200,000.

Answers

The Custom Manufacturing set its predetermined overhead rate at 290% ($580,000 / $200,000) based on estimates at the beginning of the year.

However, at year-end, the company reports actual overhead costs of $588,200, which is slightly higher than the estimated overhead costs of $580,000. This means that the predetermined overhead rate was not accurate and the company may have under or overallocated overhead costs to its products. To provide a more accurate explanation, we would need to calculate the over/ underallocated overhead costs for the year.

The predetermined overhead rate is calculated by dividing the estimated overhead costs by the estimated direct materials costs. Divide the estimated overhead costs ($580,000) by the estimated direct materials costs ($200,000).
Predetermined overhead rate = $580,000 / $200,000, Calculate the predetermined overhead rate.
Predetermined overhead rate = 2.9 or 290% ,At the beginning of the year, Custom Manufacturing set its predetermined overhead rate at 290%. The actual overhead costs for the year are $588,200, and the actual direct materials costs for the year are $200,000.

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outline 4 reasons why most developing countries rely on extractive levels of production ​

Answers

Explanation:

The World Bank helps developing countries manage their natural resource wealth responsibly and sustainably, in a way that contributes to sustainable growth and development, protects communities and reduces carbon emissions.

Name the choreographic element that encourages dancers to rely on musical cues, visual connections, and emotional phrasing.

Answers

The choreographic element that encourages dancers to rely on musical cues, visual connections, and emotional phrasing includes the time, energy, and space

What is the meaning of Choreography?

In art, a choreography means the way in which an idea is expressed physically through dance. When developing this concept, the users usually relies on important principles of organization to ensure that the idea takes a clear, appropriate, and aesthetically pleasing form.

These are principles that comprises the basic ingredients for the dancers' movements and patterns and help the choreographer utilize space, express intention and the music, and organize the dancers.

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When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must

Answers

When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.

This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.

To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.

Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.

Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.

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Information ads help supply _?_that help you learn about and compare products and services.
a. suggestions
C. ideas
b. thoughts
d. facts
Please select the best answer from the choices provided
A
B
С
D

Answers

Answer:

a is your answer

Explanation:

When participating in the
___________ ___________ ___________ students and FBLA Chapters
are able to compete with students and chapters ranked the best in the state in competitive events.
The election of State officers occurs at this event.

O National Leadership Conference

O Fall Leadership Conference

O State Leadership Conference

O Regional Leadership Conference

Answers

Answer:

At the National Leadership Conference

Explanation:

"A" represents the new quantity demanded, while "B" represents the new quantity supplied.

1. What is the result of these changes?
a) equilibrium
b) excess supply
c) excess demand

2. Based on this graph, what will prices most likely do?
a) rise
b) fall
c) stay the same

**PLEASE INCLUDE EXPLANATION

"A" represents the new quantity demanded, while "B" represents the new quantity supplied.1. What is the

Answers

Answer:

ca

Explanation:

because it is possible in the graph only

Answer:

1.) Excess supply

2.) Fall

Explanation:

Edge

when consumers are unable to articulate their experiences, [-----] become(s) particularly useful in understanding consumers' preferences.

Answers

El enunciado se completa como: ''When consumers are unable to articulate their experiences, observation becomes particularly useful in understanding consumers' preferences.''

What is observation?

Observation is a process in which data is collected from the environment, the people, or other entities in order to gain an understanding of a situation or phenomenon. Observation can help in understanding consumers' buying habits, lifestyle, and other related preferences.

What are consumers' experiences?

Customers' experiences are the feelings and reactions they have when they interact with a product or service. Consumers' experiences are shaped by their interactions with products, services, and brands. Experiences are unique to each customer, and can be positive or negative.

Customer experiences are important to businesses because they can influence customer satisfaction, loyalty, and other factors that impact the bottom line.

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the balanced scorecard relies on four processes to bind short-term activities to long-term objectives. what are they?

Answers

The balanced scorecard relies on four processes to bind short-term activities to long-term objectives - Translating the vision, Communicating and linking, Business planning, Feedback and learning.

What is a balanced scorecard?

A strategic management performance indicator known as the balanced scorecard (BSC) is used to identify and enhance various internal business activities and the results they have on the outside world. Balanced scorecards are a widespread tool used by businesses in the United States, the United Kingdom, Japan, and Europe to measure and provide feedback to organisations. In order to provide quantitative results, data collecting is essential because managers and executives must acquire and analyse the data. The decision-making of company personnel for the future of their organisations can be improved with the help of this knowledge.

The balanced scorecard was initially developed by business leader and theorist Dr. David Norton and accounting professor Dr. Robert Kaplan. It was initially published in 1992 in the Harvard Business Review article "The Balanced Scorecard—Measures That Drive Performance."

The 4 activities are:

1.  Translating the vision

2. Communicating and linking

3. Business planning

4. Feedback and learning

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Select the correct answer.
Jenna is a popular chef in a five-star hotel. She has a secret recipe that is in high demand. Under which specific law will Jenna and her unique recipe be protected against competitor infringement?
A.
trade dress
B.
trademark
C.
trade secret
D.
patent

Answers

Answer:

D. patent

Explanation:

Simple! If she has a patent on it no one can use it.

gdp can be measured using the ______ approach, which adds up all of the items that make up national earnings.

Answers

Gross Domestic Product (GDP) is the monetary value of all the final goods and services produced within a country's borders during a specific period. GDP is an important measure of a country's economic performance and is used to compare countries and determine trends over time.  

There are three approaches to measuring GDP: the expenditure approach, the income approach, and the production approach.

The Expenditure Approach The expenditure approach measures GDP by adding up the value of all the final goods and services purchased by households, businesses, governments, and foreigners during a specific period.

This approach is based on the principle that every dollar spent on a good or service represents an equal amount of income generated for someone else.

The four components of the expenditure approach are Consumption (C): This includes all spending by households on final goods and services, including durable goods (such as cars and appliances), nondurable goods (such as food and clothing), and services (such as haircuts and medical care). Investment (I):

This includes spending by businesses on capital goods (such as machinery and buildings) and on changes in inventory levels, as well as spending by households on new homes. Government Spending (G):

This includes all spending by federal, state, and local governments on final goods and services, including salaries of government workers and expenditures on goods and services such as defense and education.Net Exports (NX): This includes the difference between exports (goods and services sold to foreigners) and imports (goods and services purchased from foreigners).

The Income ApproachThe income approach measures GDP by adding up all the income earned by households, businesses, and governments during a specific period. This approach is based on the principle that every dollar of income earned by someone represents an equal amount of spending by someone else. The three components of the income approach are:

Compensation of Employees (Wages and Salaries): This includes all wages and salaries paid to employees by businesses and governments during a specific period.Net Interest: This includes all interest earned by households, businesses, and governments during a specific period.

Rental Income: This includes all income earned by households, businesses, and governments from the rental of property and other assets.Profit: This includes all income earned by businesses from the sale of goods and services, after deducting all costs of production (including wages and salaries).

The Production ApproachThe production approach measures GDP by adding up the value of all the goods and services produced during a specific period.

This approach is based on the principle that every dollar of production represents an equal amount of spending and income. The production approach is used primarily to calculate GDP by industry and to estimate changes in productivity over time.

In conclusion, the expenditure approach adds up all of the items that make up national earnings. It is an important measure of a country's economic performance and is used to compare countries and determine trends over time.

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In the past, your team has run projects using a more formal Waterfall method and now is incorporating Agile methodologies. What will be the biggest difference in how you manage your projects

Answers

The biggest difference in managing projects when transitioning from a formal Waterfall method to Agile methodologies will be the shift in focus from a linear, sequential approach to an iterative, flexible one.

The biggest difference in managing projects using Agile methodologies instead of the Waterfall method is the increased level of flexibility and adaptability. Agile emphasizes collaboration, continuous feedback, and iterative development. This means that the team will be able to respond more quickly to changes and deliver incremental value to the customer. The role of the project manager also shifts in an Agile environment, with more focus on facilitating the team's progress and removing obstacles rather than directing tasks. Additionally, Agile places a greater emphasis on transparency and communication, with regular check-ins and status updates to ensure that everyone is aligned and working towards the same goals.
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one more..please..i need it

one more..please..i need it

Answers

1. Concept artists collaborate with directors and production designers to visualize a film's vision. To create a CG creature or object, they collaborate closely with look development teams, as well as experienced lighting artists and modeling artists.

Once the script is finalized and pre-production begins, directors frequently hire artists to create the film's visual aesthetic.

2. Higher resolutions have more pixels per inch (PPI), which means more pixel information and a higher-quality, crisp image. Lower resolution images have fewer pixels, and if those few pixels are too large (typically when an image is stretched), they can become visible.

3. Kinematics is the study of the motion of mechanical points, bodies and systems without consideration of their associated physical properties and the forces acting on them. The study is often referred to as the geometry of motion, and it models these motions mathematically using algebra. In kinematic animation the objects are moved according to a set of given equations for the velocities or the accelerations at certain points of the objects. This procedure results in a realistic animation only if the prescribed velocities and accelerations were derived from a complete dynamic physical model.

4. Role: Creative Director

Function: Creative directors have almost always worked in animation for some time and have experience sourcing, casting, and creating various animation teams before encouraging consistent, high-quality performances from them.

This position piques my interest. Because it not only provides a large playing field for a variety of creative interventions, but it also aids in the development of important interpersonal skills such as networking and leadership.

5. An graphic tablet is a PC input gadget that is much of the time a non-show tablet, implying that it doesn't have a presentation screen; rather, graphic tablets include a drawing surface that specialists might draw on with a Stylus.

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there is some concern that increased use of could prompt the need for legislation protecting employee privacy rights.

Answers

There is some concern that increased use of electronic databases could prompt the need for legislation protecting employee privacy rights.

An electronic database is a computer-based collection also listing of the information. Through this the information can be searched in a fast and easy manner.

Electronic databases held organized collections of data, or information, which is thus stored in a computer in a readable form. So sometimes, the increased use of electronic databases might probably prompt the need for legislation which protects employee privacy rights.

Hence, the electronic databases can make it easier to search, query, filter and retrieve required data.

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Other Questions
You are trying to price a Crest Technologies, a start-up and have the following projections (in millions) for the next five years: Revenues EBITDA Tax Rate FCFF Cost of Capital 1 2 3 4 5 $10.00 $50.00 $100.00 $250.00 $500.00 ($25.00) ($40.00) ($50.00) ($20.00) $50.00 0% 0% 0% 0% 30% ($50.00) ($100.00) ($150.00) ($100.00) ($25.00) 12% 12% 12% 12% 12% You have run a regression of EV/EBITDA against tax rate and EBITDA margin (EBITDA/Sales) for more established firms in the business and have the following: EV/EBITDA = 10.00 + 90.00 (EBITDA Margin) - 10.00 (Tax Rate) [All numbers in the regression are entered in decimals, i.e., 20% is 0.20] a. If the cost of capital is 12% and you have $50 million of net debt outstanding today, estimate what you would pay for equity today, based upon your expected pricing in year 5 and incorporating the effect of cash flows for the next five years. (3 points) $95.07 b. The negative cash flows that are forecast for the next five years are called "cash burn" and will require fresh capital to be raised. Assuming that the company plans to issue only equity to meet these needs, estimate how much of a discount you are already applying to your equity value (in part a) to reflect this dilution? (1.5 points) 76.46% c. Now assume that there is a chance that capital markets will freeze up, making it impossible to raise capital and that the probabilities of that happening, by year, are below: 1 4 Year Probability of Capital Freeze 2 10% 3 10% 5 5% 15% 5% Estimate the value of equity with this probability considered, assuming that if capital is unavailable, the business will have to shut down and equity will be worth nothing. (1.5 points) $59.08 Based on current research findings, the most likely factor underlying the ergogenic effect of caffeine during exercise is its effect to stimulate the nervous system effect to increase fatty acid oxidation effect to increase red blood cells and hemoglobin effect to spare use of muscle glycogen effect to prevent dehydration If Dave had borrowed $220 for one year at an APR of 5 percent, compounded monthly, what would have been his monthly loan payment? Use Exhibit 1B-4. (Do not round your intermediate calculations. Round your final answer to 2 decimal places. Omit the "$" sign in your response.) Nautilus Clothing's stock has a 60% chance of producing a 15%return, a 20% chance of producing a 20% return, and a 20% chance ofproducing a -7% return.What is the stock's expected return? Black-Scholes A stock is currently priced at $49. A call option with an expiration of 1 year has an exercise price of $50. The risk-free rate is 2 percent per year, compounded continuously, and the standard deviation of the stock's return is infinitely large. What is the price of the call option? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Call option price document 16.5: illustration of battle during chicago railroad workers' strike, 1877 as the source of reference The quality of an aircraft that permits it to be operated easily and to withstand the stresses imposed on it is. A. controllability. B. stability.