Income Approaches: You Are Using the FCFF Approach to Value

question 14

Multiple Choice

Income approaches: You are using the FCFF approach to value a business. The estimated FCFF for next year will be $13.6 million, and it will increase at a rate of 6 percent for each of the following five years. After that point, the FCFF will increase at a rate of 3 percent forever. If the WACC for this firm is 8 percent, what is it worth?

• A) $301 million
• B) 354 million
• C) $241 million
• D) $144 million

Discern the impact of early childhood experiences and unconscious motivations on personality development according to psychoanalytic theories.

Understand the concept of reciprocal determinism and how human behavior is influenced by the interaction of behavioral, cognitive, and environmental factors.

Recognize the principles of self-efficacy and its sources according to Albert Bandura.

Describe Carl Rogers's concepts of congruence and conditions of worth in relation to self and personality.

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Definitions:

College Age

A phase in a person's life, typically ranging from 18 to 22 years, when they are most likely to be attending a college or university.

Sexual Abuse

Threatening or forcing a partner to take part in a sex act when she or he doesn’t consent.

Abusers

Individuals who regularly or habitually use physical, emotional, or sexual mistreatment or harm towards others.

Dating Relationships

Romantic associations between individuals who are exploring their compatibility through social interactions not necessarily leading to marriage.