Question
Apple is going to buy a small parts supplier RS Supplies. They set a price target for the buy and start the negotiation process. All
Apple is going to buy a small parts supplier RS Supplies. They set a price target for the buy and start the negotiation process. All of a sudden RS Supplies gets another contract from Samsung as well. When Apple comes to them with their offer, they are told that the price now is too low. What could justify RS Supplies stance?
A. The PV of future FCFs will be higher most likely from higher sales
B. The PV of future FCFs will be higher most likely from w lower growth
C. The PV of future FCFs will be higher most likely from a higher discount rate
D. The PV of future FCFs will be higher most likely from a lower discount rate
E. Both A&D
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