Topic 2: god, humanity, and human dignity
Additionally – acknowledging the imago Dei encourages us to recognize each person’s unique gifts, strengths and potential. Thus – healthcare providers must work to ensure that everyone has access to quality services regardless of their economic status or political views. Furthermore – by affirming the imago Dei we can promote greater understanding and empathy towards those who may have different worldviews; ultimately helping bridge any gaps between cultures or faiths.
Ultimately – while respecting the imago Dei should always remain at the forefront of our decision-making process – healthcare professionals must also take into account individual circumstances when determining care plans. By doing so – they can ensure they are providing optimal treatment while also upholding ethical standards; thus leading us closer towards achieving justice, equity and fairness for all. Growth Rate)) / (Opportunity Cost of Capital – Growth Rate).
In this case, the future cash flows are expected to grow at a rate of 7%, the opportunity cost of capital is 10%, and the growth rate is 7%. Thus, the terminal value can be calculated as follows: Terminal Value = (69 x (1+ 0.07)) / (0.10 – 0.07) = 695.12 million dollars.
To calculate the current value, we must also include the present values of all previous free cash flows for each year up to year 5. This can be done using the following formula: Present Value = Free Cash Flow ÷ (1 + Opportunity Cost of Capital)^Year Number. For example, in order to calculate the present value of Year 1’s free cash flow we would use this formula as follows: Present Value = 5 ÷ (1 + 0.10) ^ 1 = 4.55 million dollars.
The next step is to sum up all these present values along with the terminal value in order to calculate the current value at year 5: Current Value at Year 5 = 4.55 + 8.21 + 16.39 + 28..88 + 48 .34 + 695 .12= 801 .49 Million Dollars
Thus, by following these steps it can be determined that with an opportunity cost of capital 10%, and a stable growth rate of 7% for every year after year 5,the current value of firm at endofyear5 is 801 .49 million dollars.