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estion: Calculate the weighted average cost of capital (WACC) for PDI. E/V 80.00% Cost of equity 9.40% Risk-free rate 3.00% Beta 1.28 Market equity risk

estion:

Calculate the weighted average cost of capital (WACC) for PDI.

E/V 80.00%

Cost of equity 9.40%

Risk-free rate 3.00%

Beta 1.28

Market equity risk premium 5.00%

D/V 20.00%

Cost of debt 4.00%

Corporate tax rate 40.00%

WACC 80% x 9.40%) + [20% x 4% x (1 - 40%)]= 8.00% WACC = (E/V x Re) + ((D/V x Rd) x (1 - T))

*Cost of equity Risk free rate of return + (Beta * Risk premium) = 3% + (1.28 x 5%) 0.094

Givend the above, I cannot get the following:

Sum of FCF PV =?

Terminal value =?

Present value of terminal value =?

Total value of PDI =?

Assumptions

Discount rate ?

Terminal value ?

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Q: Which of the following Is a primary activity In a firm value chain? Ans: Marketing & Sales 1. Marketing & sales Reason: Marketing & sales is the primary activity of the value chain for the firm because it helps to influence the customer and generate business for the organizations directly. 2. Finance Reason: Finance isn't a primary activity for the value chain because it provides support to the primary activities like operations, logistics, and marketing of the product. 3. Accounting Reason: Accounting isn't a primary activity for the value chain because it provides support to the primary activities like information about the cost of the product, profit, and sales records, etc. 4. Human Resource Reason: Human Resource isn't a primary activity for the Value chain because it provides support to the primary activities like providing employees for each department for achieving business objectives. All the very best, take careNo Jacob should not pa}.r to riel due to following reasons: 1. There is no agreements between them on the payment that should be made, Jacob had only.r promised to pa}:r and there is no proof on the same. 2 Stealing is illegal and Jacob should not encourage An'el to do sud'i activities further as that might lead towards problem in future. Question 2: In this question will again compute a mean and 5. variance by hand. Suppose we had the following data: 5, 5, 5, 5, Fill in the table using the same approach as in question 1. Then, sum up the numbers entered in column C for the table below to compute the sample variance: n-1 Your sample variance should have been 0, otherwise you made a mistake. Correct the mistake if needed. Intuitively, why do you think the variance is 0 for this data set? column A column B column C X ( x - X ) ( x - x ) ? 5 n= 5 5 X =

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