Ebookebook problem walk-throughproblem walk-through dantzler corporation is a fast-growing supplier of office products. analysts project the following free cash flows (fcfs) during the next 3 years, after which fcf is expected to grow at a constant 7% rate. dantzler's wacc is 15%. year 0 1 2 3fcf ($ millions) - $17 $18 $53 what is dantzler's horizon, or continuing, value? (hint: find the value of all free cash flows beyond year 3 discounted back to year 3.) enter your answer in millions. for example, an answer of $13,550,000 should be entered as 13.55. do not round intermediate calculations. round your answer to two decimal places. $ million what is the firm's market value today? assume that dantzler has zero non-operating assets. enter your answer in millions. for example, an answer of $13,550,000 should be entered as 13.55. do not round intermediate calculations. round your answer to two decimal places.

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.

Wren pork company uses the value basis of allocating joint costs in its production of pork products. relevant information for the current period follows: product pounds price/lb. loin chops 3,000 $ 5.00 ground 10,000 2.00 ribs 4,000 4.75 bacon 6,000 3.50 the total joint cost for the current period was $43,000. how much of this cost should wren pork allocate to loin chops?

Bdj co. wants to issue new 22-year bonds for some much-needed expansion projects. the company currently has 9.2 percent coupon bonds on the market that sell for $1,132, make semiannual payments, have a $1,000 par value, and mature in 22 years. what coupon rate should the company set on its new bonds if it wants them to sell at par?