Aerelon airways, a commercial airline, suffers a major crash. as a result, passengers are
considered to be less likely to choose aerelon as their carrier, and it is expected free cash flows
will fall by $15million per year for five years. if aerelon has 55 million shares outstanding, an
equity cost of capital of 10%, and no debt, by how much would aerelonʹs shares be expected to
fall in price as a result of this accident?
contributions made after 1986. after-tax contributions to employer plans made after 1986 are recovered pro rata with taxable amounts. the remaining $80,000 is from pre-tax contributions, employer matching dollars, and earnings on those amounts.
because we have better technology and training options < 3