Clear Displays, Inc., manufactures display screens for mobile devices and is looking to expand their business through acquisition. Clear Displays has a weighted average cost of capital of 10%. They are evaluating the opportunity to acquire one of their competitors, Bright Screens, Inc. Cash flows for Bright Screens are forecasted to be $110,000 in each of the next 4 years, and net income for Bright Screens is forecasted to be $90,000 in each of the next 4 years. The projected terminal value for Bright Screens at the end of that 4-year period is $1,250,000. Utilizing the discounted cash flow method, the valuation for Bright Screens is expected to be A. $1,139,050 B. $1,202,450 C. $1,535,300 D. $1,598,700

Costs of production that do not change when output changes.question 17 options: total revenuefixed incometotal costfixed cost

The following information is available for jase company: market price per share of common stock $25.00 earnings per share on common stock $1.25 which of the following statements is correct? a. the price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. b. the market price per share and the earnings per share are not statistically related to each other. c. the price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year. d. the price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year.

Consider the following two projects. both have costs of $5,000 in year 1. project 1 provides benefits of $2,000 in each of the first four years only. the second provides benefits of $2,000 for each of years 6 to 10 only. compute the net benefits using a discount rate of 6 percent. repeat using a discount rate of 12 percent. what can you conclude from this exercise?