Exam (elaborations) HernandezA-FINC300-7.xlsx
(a) What are the values for divisions A and B if you assume, for calculation purposes, that operating income is constant to perpetuity? V A = 50/0.15 = 333.3 V B = 300/0.15 = 2000 (b) The company pays out 50 and so finances its investments for 300. The company invests everything in division B at the same return on capital employed (30%). How much value is created? V A unchanged V B = 390/0.15 = 2600 for 300 reinvested creation of value = 300
Geschreven voor
- Instelling
- American Public University System
- Vak
- HernandezA-FINC300-7.xlsx
Documentinformatie
- Geüpload op
- 12 februari 2021
- Aantal pagina's
- 2
- Geschreven in
- 2020/2021
- Type
- Tentamen (uitwerkingen)
- Bevat
- Vragen en antwoorden
Onderwerpen
-
hernandeza finc300 7xlsx excellent grade of 2021