The following data apply to Hill's Hiking Equipment: Value of operations $20,000, Short-term investments $1,000, Debt $6,000, Number of shares 300; The company plans on distributing $50 million by repurchasing stock. What will the intrinsic per share stock price be immediately after the repurchase?
Answers
Answer:
$50
Explanation:
Solution
Recall that:
The company plans on giving out $50 million by repurchasing stock hence, number of stock to be purchased = 50/50 = 1 million
The Number of share bought back = 300-1 = 299
Thus
$20,000 + $1,000 - $6000 = $15,000
$15,000 / 300 shares = $50
Before Repurchase After the repurchase
Value of operations 20000 20000
Short-term investments 1000 950
Less : Debt 6000 6000
Intrinsic value of equity 15000 14950
Number of shares 300 299
Intrinsic value per share 50 50
Therefore the intrinsic per share stock price be immediately after the repurchase is $50
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A plastics factory emits water pollutants into a nearby river. The marginal private cost of producing plastics is constant, the marginal external cost of the pollutants increases with the quantity of plastics, the demand for plastics is downward sloping. What happens to the socially optimal level of output and market price if the marginal external cost curve shifts upward? A) Optimal price and quantity decrease. B) Optimal price increases, optimal quantity remains unchanged. C) Optimal price increases, optimal quantity decreases. D) Optimal price and quantity decline.
All of the following are parts of business models employed in the online music industry except: Question 2 options: A) peer-to-peer streaming. B) cloud streaming. C) download-and-own. D) subscription.
C) it contains powerful suppliers who can control prices
D) substitute products are unavailable in the segment
E) buyers in the market segment have weak bargaining powers
Answers
Answer:
B) it is difficult for new entrants to enter the segment
Explanation:
The porters' five forces of industry analysis include threat of new entrants, bargaining power of suppliers, competitive rivalry, bargaining power of customers and substitute products.
When the market is difficult for new entrants for one reason or the other such as the control of the distribution network by already established players in the industry, government regulations or large capital requirements etc the industry will be less attractive.
Other options given are factors that make the industry attractive.
Answers
Answer:
If you invest $1,600 at the end of every year for four years at an interest rate of 14%, the balance of your investment in 4 years will be closest to:____________
$7,873.83
Explanation:
a) Data:
Annual investment = $1,600
Interest rate = 14%
Number of period = 4 years
b) Calculations, using an online finance calculator:
FV (Future Value) $7,873.83
PV (Present Value) $4,661.94
N (Number of Periods) 4.000
I/Y (Interest Rate) 14.000%
PMT (Periodic Payment) $1,600.00
Starting Investment $0.00
Total Principal $6,400.00
Total Interest $1,473.83
c) The investment of $1,600 at the end of every year for fours will grow to $7,873.83 with the principal amount of $6,400 ($1,600 * 4) plus compounded interest of $1,473.83.
Answers
Answer:
Consider the following explanations
Explanation:
Q1.) the short run fluctuations in the real GDp is known as the business cycles.
Q2.)yes , it is true that Short-term fluctuations in real GDP are irregular and unpredictable.
Q3.) A decrease in real GDPcoincide with declining personal income, and falling corporate profits. As incomes decline consumer spending also decline on retail goods and services and on durable goods, such asautomobiles. Households also contribute to declining investment expenditures by purchasing fewernew homes. As households spend less on products, firms cut back on industrial production and curbinvestment expenditures on physical capital.The unemployment rate tends to rise during periods of falling real GDP as firms cut back on productionand lay off workers. The unemployment rate tends to fall during economic expansions as firms expands production and hire additional workers.
Final answer:
Short-term fluctuations in real GDP are indeed irregular and unpredictable. In 1950, an increasing real GDP in the U.S. economy signifies a period of economic growth.
Explanation:
Short-term fluctuations in real GDP are indeed irregular and unpredictable. While real GDP tends to trend upward over time, it experiences ups and downs in the short run, which we call recessions.
In the context of the U.S. economy in 1950, if there was an increasing real GDP, it means that the economy was growing. This growth could be attributed to various factors such as increased consumer spending, business investment, government spending, or exports.
It could indicate a period of economic expansion with rising employment and incomes.
Learn more about Short-term fluctuations in real GDP and increasing real GDP in the U.S. economy here:
#SPJ3
Answers
Answer:
9.92%
Explanation:
First, find the Annual Percentage Rate (APR).
You can do this with a financial calculator using the following inputs;
PV = -24500
N = 60
PMT = 514.55
then CPT I/Y = 0.792% (this is a monthly rate)
APR = 0.792% *12 = 9.5%
Next, convert APR to EAR;
EAR =
whereby m= number of compounding periods per year ;12 in this case.
EAR =
= 1.0992476 - 1
=0.0992476 or 9.92%
Therefore, the effective rate on this loan is 9.92%
Answers
Answer:
Option a is the answer i.e $0
Explanation:
Basically, Mr Carl who has a salary of $91,500 and interest income of $11,000.
From the US system, one is not allowed or simply put it is not mandatory on you to have a contribution towards your educational savings, IT IS NOT. such action is dependent on individuals volition, it is the individual who has a better plan will think of having a savings for education by way of attending college.
Moroever, in the US, students are enttled to financial aid to support their education while in college. If financial aid is available for students, then there wont be any need for them to have a savings towards their education.
Llike I said, having an educaional savings account is depenedent on the individual and his plans towards college. Hence, Mr Carl has no rule or law that says he must have a maximum or minimum in his educational savings account and as such the answer is 0$.
B : $6.85
C : $5.80
D : $3.00
Answers
Answer:
B : $6.85
Explanation:
Because Dora, Inc. has enough capacity to fill the special order in excess of regular sales volume, the fixed cost of its remain unchanged at $196,000.
Widget variable cost per unit of Dora is 210,000/70,000 = $3
To break even on the special order, the respective total sales amount has to cover all related cost, including allocated fixed cost, variable cost as well as additional shipping charges. Putting all the numbers together, we have:
3,000 x P - 196,000 x (3,000/73,000) - 3 x 3,000 - 3,150 = 0 with P is the selling price.
Solve the equation we get P = 6.73. Option answer A,C or D will result in loss for this special order. So, the suitable answer is B.
Answer:
$4.05
Explanation: