What will the value be if the company borrows $132,000 and uses the proceeds to repurchase shares? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer 1

Answer:

$484,950

Explanation:

The computation of the value of the firm after proceeding with the shares repurchase is shown below:

= EBIT × (1 - tax rate) ÷ cost of equity + borrowed amount × tax rate

= $81,000 × (1 - 0.35) ÷ 0.12 + $132,000 × 35%

= $438,750 + $46,200

= $484,950

Hence, the value is $484,950

We simply applied the above formula

And the same is to be considered


Related Questions

The treatment of distributions in liquidations differs from that in nonliquidating distributions in that the corporation is always allowed to recognize loss on a liquidating distribution.
a) True
b) False

Answers

Answer:

True

Explanation:

A liquidating dividend is a distribution of cash or other assets to shareholders, with the intent of shutting down the business. This dividend is paid out after all creditor and lender obligations have been settled, so the dividend payout should be one of the last actions taken before the business is closed. Nonliquidating corporate distributions are distributions of cash and/or property by a continuing corporation to its shareholders.

What is the difference between an asset's ability to generate revenue and its ability to generate profit

Answers

Answer and Explanation:

As we know that the revenue is the recording of an incoem that arise from the business activity

While on the other hand, the profit is the amount that comes when the revenue is more than its cost or expenses

In the case when an asset is able to generate revenue

1.  Revenue can be in terms of cash

2. It is determined

In the case when an asset is able to generate profit

1. It does not produced the cash in a direct manner

2. It is variable as proft cannot be hold

2) The farmer pays 15 cents for wheat seeds. When the wheat is grown and harvested, the farmer sells it to the miller for 30 cents, who makes flour and sells the flour to the baker for 60 cents. The baker makes bread and sells it to the grocer for 90 cents, and the grocer sells it to a family for $1.25. The contribution to GDP is

Answers

Answer:

$1.25

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports imports

When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.

Items not included in the calculation off GDP includes:

services not rendered to oneself

Activities not reported to the government

illegal activities

sale or purchase of used products

sale or purchase of intermediate products

the wheat seeds and flour are intermediate goods and are not included in the calculation of GDP

Is .gov a good website?

Answers

Answer: most websites with .gov in it are reliable.

With gov their more reliable

matt agrees to pay ted $100 in exhange for Ted's promise to paints Matt's house. This is an example of a(n):

Answers

Answer:

bilateral contract.

Explanation:

Bilateral contract can be regarded as a type of binding agreement, it can be explained as an exchange of promise that exist between two parties on a particular action/activities. Both promise of the two parties is essential in bilateral contract since one promise of the first party determine the consideration for other. Therefore, In the case described in the question, whereby matt agrees to pay ted $100 in exhange for Ted's promise to paints Matt's house

can be regarded as an example of bilateral contract.

Mark purchased 100 shares of ABC stock for $25 per share and sold this same stock two years later for $28 per share. Be paid commissions of $50 when he purchased the stock and $55 when he sold the stock. No dividends were paid during the period he owned ABC. Mark's current income from this investment is ________, and his capital gains were __________.

Answers

Answer:

1. Mark's current income from this investment is $2800

2. His capital gains =sales- total cost= 2800-2605=$195

Explanation:

Step one:

Given data

Amount of shares= 100

price per share= $25

cost of shares = 100*25= $2500

commission paid= $50

commission paid after sales= $55

total cost of shares= $2500+50+55= $2605

Step two:

sale made from selling the shares= 28*100= $2800

1. Mark's current income from this investment is $2800

2. His capital gains =sales- total cost= 2800-2605=$195

Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1900. It is now 2016. a.) If someone invested $1000 in 1900, how much would that investment be worth today? (Do not round intermediate calculations. Round your answer to two decimal places.) b.) If an investment from 1900 has grown to $1 million, how much was invested in 1900? (Do not round intermediate calculations. Round your answer to two decimal places.)

Answers

Answer:

1. $287,050.75

2. $3,483.70

Explanation:

1. Calculation for how much would that investment be worth today

Using this formula

A=P(1+r/100)^n

where,

A represent future value

P represent present value

r represent rate of interest

n represent time period

Note 2016-1900 will give us 116 years

Let plug in the formula

A=$1,000(1.05)^116

A=$1,000*287.05075

A=$287,050.75

Therefore how much that the investment would be worth today will be $287,050.75

2. Calculation for how much was invested in 1900

1,000,000=P(1.05)^116

P=1,000,000/1.05^116

P=$3,483.70

Therefore how much was invested in 1900 will be $3,483.70

1. In an agreement between a supplier and a customer, the supplier must ensure that all parts are within specification before shipment to the customer. What is the effect on the cost of quality to the customer?

Answers

Answer:

According to business analyst in certain areas, it is known that no businesses can run not without making a profit, and profit comes from the shoppers. To please the purchasers by delivering the products or services. Also in cases where suppliers couldn’t dispatch the products or services on timely to its customers, customers are more likely to modify the corporate or products in order that there'll be rather more negative effects when it involves the value of quality to suppliers. The most important impacts of not meeting predetermined promises to its customers for suppliers are as follows:

· Returned goods

. Liability claim

· Reworking costs

· Warranty costs

· Loss of goodwill, etc.

These steps are taken in many cases to confirm that each part is within tolerance, the suppliers have to add extra efforts to examine each part before conducting shipment to its customers. These costs are associated with delivering substandard products or services to customers so sometimes it's also called external failure to the organization. In my view, these costs are to be avoided or reduced so as to achieve a competitive advantage within the market.

Mike, a project team member indicates that his programming task will take about 5 days to complete if everything goes flawlessly. Normally, this type of task takes about 7 days. But, if things go wrong, it could take up to 8 days. What is his PERT duration

Answers

Answer:

Pert Estimate = 6.83

Explanation:

The PERT duration is calculated using the following formula

Pert Estimate = (Optimistic + (4 X Most Likely) + Pessimistic)/6

In this scenario, the most optimistic amount of time would be 5 days for completion. The most likely or average amount of time this type of project takes is 7 days, and if things go wrong the most pessimistic outlook is 8 days. Therefore we can plug these values into the formula and calculate the PERT duration.

Pert Estimate = (5 + (4 * 7) + 8)/6

Pert Estimate = (5 + (28) + 8)/6

Pert Estimate = 41/6

Pert Estimate = 6.83

Given a​ Cobb-Douglas production function where α​= β ​= 0.5:

Q= (K^0.5) x (L^0.5)

Required:
Find the equation for the isoquant when Q​ = 2,000.

Answers

Answer:

MRTS=-400

Explanation:

This equation basically says that the output that this firm produces is a function of Labor and Capital, where each isoquant represents a fixed output produced with different combinations of inputs

The equation for the isoquant when Q​ = 2,000 can be found as follows

Q=(K^{0.5})*(L^{0.5})

where Q = 2000

2000=(K^{0.5})*(L^{0.5})

(K^{0.5})=[tex]\frac{2000}{(L^{0.5})}[/tex]

K=[tex]\left (\frac{2000}{(L^{0.5})} \right )^{2}[/tex]

MRTS=[tex]-\left ( \frac{\frac{0.5*2000}{100}}{\frac{0.5*2000}{40000}} \right )[/tex]

where

K=[tex]\left (\frac{2000}{(L^{0.5})} \right )^{2}[/tex]

K=[tex]\left (\frac{2000}{(100^{0.5})} \right )^{2}[/tex]

K=[tex]\left (\frac{2000}{(10)} \right )^{2}[/tex]

K=200^{2}

K=40000

MRTS=-400

g Which player is likely to have higher bargaining power: an established company shopping around for a new parts supplier, or a start-up company trying to sell its parts

Answers

Answer: An established company shopping around for a new parts supplier

Explanation:

A well established company that is shopping around for a new parts supplier will have greater bargaining power as more powerful companies usually do. This is because with well established companies, it is advantageous for suppliers to be the company's preferred suppliers as they will be sure that they have a stable consumer that will continually patronize them.

This is unlike a start-up company that is trying to sell its parts. As they are still at an early stage, they will have to offer less prices than already established suppliers in order to capture market share. They are therefore in a worse off position to negotiate.

A stock just paid a dividend of $4.49 and is expected to maintain a constant dividend growth rate of 4.1 percent indefinitely. If the current stock price is $78, what is the required return on the stock

Answers

Answer:

The required rate of return is 10.09%

Explanation:

The computation of the required return is shown below:

As we know that

Price of the stock = Dividend ÷ (required rate of return - growth rate)

$78 = $4.49 × (1 + 4.1%) ÷ (required rate of return - 4.1%)

$78 = $4.67 ÷ (required rate of return - 4.1%)

After solving this, the required rate of return is 10.09%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Royal Furniture bought a sofa for $825. The sofa had a $1,425 list price. What was the trade discount rate Royal received?

Answers

Answer:

the trade discount rate is 42.11%

Explanation:

The computation of the trade discount is shown below:

As we know that

List Price = Net Price ÷ trade discount rate

where,

List price is $1,425

Net price is

= $1,425 - $825

= $600

So, the trade discount rate is

$1,425 = $600 ÷ trade discount rate

= $600 ÷ $1,425

= 42.11%

Hence, the trade discount rate is 42.11%

Every month, each employee in your department is expected to give a brief oral presentation on the status of his or her ongoing projects. However, your department has recently hired an employee who has a severe speech impediment that prevents people from understanding most of what he has to say. As assistant department manager, how will you resolve this dilemma

Answers

Answer:

I will resolve it by being a mentor, Provide coaching and assistance, Identify the limitations of speech impediment and monitor and take some/ do some try out presentation with him to see his growth rate.

Explanation:

For any organization to succeed, teem building is very important. Helping each other out of their weaknesses can make any unit or department to succeed. Failure for one is a failure for all in a team. Improving performance of your team by helping the employee which is ur team member in his communication skills. Provide assistance to the employee by recognizing what is wrong, what is the solution and help him/her every step of the way. Communication is done when the receiver understand what is being pass so help the employee in his/her communicating skills and how to make a good presentation despite his/her defeat or shortcomings.

how do u get arrested

Answers

Answer:

breaking the laws that's one way to get arrested, if that's what you are asking lol

Answer:

Basically anything that interferes with the law or disturbs peace

Explanation:

1)hurt someone.

2)Spray paint.

3)Punch someone.

4)Fight with officer.

5)Get out of control at school.

6)Get in a fight.

7)Steal a car.

8)Sell drugs.

9)Hit a police car and drive off.

10)Threaten to hurt yourself.

etc

In 2008, lawsuits were filed against three producers (LG Display Co., Chunghwa Picture Tubes, and Sharp Corporation) for conspiring to fix prices of LCD panels. What act prohibits conspiring with your competitors to fix prices?
a. Sherman Act
b. Robinson-Patman Act
c. Clayton Act
d. Federal Trade Comission Act

Answers

Answer:

a. Sherman Act

Explanation:

Sherman act is also called the anti trust act. It prevents business interests from creating a monopoly and taking undue advantage in a market by collusion to influence price of a commodity.

For example when competing companies come together to monopolize a market so that they can maximise profit, the Sherman act can be used to prevent this from happening.

In the given scenario LG Display Co., Chunghwa Picture Tubes, and Sharp Corporation conspired to fix prices of LCD panels. This is prohibited by the Sherman Act

A customer purchased some goods on credit from Stears Corp. The customer then returned $750 worth of goods to the company because he found them to be defective. What will the contra revenue journal entry by the accountant be? A. Customer Account (debit) 750; Sales Return Account (credit) 750 B. Sales Return Account (debit) 750; Customer Account (credit) 750 C. Sales Return Account (debit) 750; Sales Account (credit) 750 D. Sales Account (debit) 750; Sales Return Account (credit) 750 E. Sales Return Account (debit) 750; Cash Account (credit) 750

Answers

Answer: I went with A I'm not confident in it thou

Explanation:

g Assume that the risk-free rate of interest is 3% and you estimate the market's expected return to be 9%. The equity cost of capital for "Meenie" is closest to:

Answers

Answer:

12%

Explanation:

Risk free rate + market expected return = equity cost of capital =  3% + 9% = 12%

Standard costs can be used by management to assess the reasonableness of actual costs incurred. Question 1 options:

Answers

Answer: True

Explanation:

Actual costs to be business are impossible to be known with complete certainty before the business embarks on a project yet the business will still need to budget and include costs in that budget. They would need figures for cost for that budget.

This is why Standard costs are important. Being estimates, they will enable a company to be able to assess the reasonableness of actual costs to be incurred and act accordingly.

Those who can most influence individual behavior within a small company and set the moral and ethical tone of a company are its:

Answers

Answer:

managers or owners

Explanation:

The managers or the owners control its business operations. It depend on them how they managed the company or an organization. Their behavior, how ethically they treats their employees, staff, etc. This represents their ethical tone and moral values how they respect to their staff.

Therefore the most influence individual is the owners and manager itself who  overall controls the company

LAR Corp. purchased a commercial dishwasher by paying cash of $8,000. The dishwasher's fair value on the date of the purchase was $10,000. The company incurred $400 in transportation costs, $600 installation fees, and paid $300 annual insurance on the equipment. For what amount will LAR record the dishwasher

Answers

Answer:

9,000

Explanation:

The original cost of an asset takes into consideration all of the items that can be attributed to its purchase and to putting the asset to use.

Amount at which dishwasher is recorded = Cost + Transportion cost + Installation fee

Amount at which dishwasher is recorded = $8,000 + $400 + $600

Amount at which dishwasher is recorded = $9,000

Note: Insurance is recorded as an expense.

Sheridan Company will receive $880000 in a future year. If the future receipt is discounted at an interest rate of 7%, its present value is $548020. In how many years is the $880000 received

Answers

Answer:

7 years

Explanation:

The computation of the number of years required for $880,000 is shown below:

We have to equate the future value and the present value. Like shown below:

Future value = Present value

$880,000 = $548,020 × 1.07^n

$880,000 ÷ $548,020 = 1.07^n

1.6058 = 1.07^n

As going through the future value interest table the number of years would it take is 7 years at  7% the factor is 1.6058

Therefore the 7 years is the answer

Nominal GDP will definitely increase when:_________.
a. prices increase and output increases.
b. prices increase and output decreases.
c. prices decrease and output increases.
d. All of the above are correct.

Answers

Answer:

I think it's D If I'm wrong I'm sorry but have a nice day an hope this helps...

Nominal GDP will definitely increase if there is a simultaneous increase in the price level as well as the output level. Thus, option A is correct.

What is Nonimal GDP?

Gross Domestic Product (GDP) in nominal terms is GDP expressed in current prices, without inflation adjustment. GDP is estimated at current prices by stating the values of all commodities and services generated during the current reporting period.

Nominal GDP will undoubtedly rise if both the price and output levels rise at the same time because the multiplication of both variables yields a country's nominal GDP. Therefore, it can be concluded that option A is correct.

Learn more about GDP here:

https://brainly.com/question/30111703

#SPJ2

Over the past few decades, the U.S. economy has switched from a primarily manufacturing economy to a service economy. Many individuals working in manufacturing positions lost their jobs, and many new jobs opened up in services. For those who lost jobs in manufacturing, this is an example of:

Answers

Answer:

Structural unemployment

Explanation:

Structural unemployment is one that occurs as a result of a mismatch between the skills that employees have and the skills required by employers.

It is a form of involuntary unemployment.

Usually when there is industrial restructuring this type of unemployment occurs. For example if there is a shift from manual factory production to automated production systems, people are going to lose their jobs because their skills are no longer in demand.

On the given scenario the U.S. economy has switched from a primarily manufacturing economy to a service economy. So more of service professionals were now needed.

ABC Company recently began using cross-functional teams. The HR director wants to make sure the teams collaborate effectively, but also wants to avoid stifling individual initiative. One method she could use to achieve this goal would be to:

Answers

Answer:

Use a skill-based pay plan for the team

Explanation:

A skill-based pay is simply non-traditional compensation system. It promote/encourages the growth of a multi-skilled work force by basing employees' pay rates on the number of jobs in the organization that they can do, instead of/on the specific job employees may be doing at a particular time. It is also referred to as as Pay for Knowledge and Knowledge-based Pay. To an Employer, it help to ensure Work force flexibility and Leaner staffing while to Employees, it guarantee/ give High satisfaction & motivation and alsoHigh self-esteem/worth.

Collins Corp. sells $400,000 of bonds to private investors. The bonds are due in five years, have an 4.1% coupon rate, and interest is paid semiannually. The bonds were sold to yield 6%. What proceeds does Collins receive from the investors

Answers

Answer: $367,555

Explanation:

The following information can be gotten from the question

Face Value of the bond = $400,000

Coupon rate = 4.1%

Annual Coupon will be calculated as:

= 4.1%*$400,000

= $16,400

Semi-annual Coupon:

= $16400/2

= $8,200

Annual YTM = 6%

Semi-annual YTM = 6%/2 = 3%

Bond Proceed will now be:

= $8,200 × PVIFA(3%, 10) + $400,000 × PVIF(3%, 10)

= $8,200 × (1-(1/1.03)^10)/0.03 + 400,000/1.03^10

Bond Proceed = $367,555

Collins receive $367,555 from the investors

Why do you pay late fees with a credit card and not with a debit card?
Please answer ASAP!!

Answers

Answer:

Debit card is direct charge to balance in your account.  Credit card is a loan

Explanation:

On a credit card, you are borrowing money.  You keep a running balance and make a payment monthly.  If you miss a monthly payment your credit agreement allows the bank to charge you a late fee.  With a debit card, money is deducted from your bank account balance as you use it.  So you don't have to worry about a monthly payment - or late fees, but you can be charged an overdraft fee if you overspend your balance.

Answer:

you are barrowing money with a credit card but with a debit card it is coming strait out of your checking account.

Explanation:

Architecting resilience depends on _________, which means that every component is backed up by an alternative in case it fails.

Answers

Answer:

Redundancy.

Explanation:

In an architecting resilient systems, redundancy can be simply understood as extra components which can used as back up when there are accidents and failures in the main components. It helps in the reliability and security of the systems.

As we know failures and crises may arise anytime in a system, architecting resilience depends on redundancy, which means that every component is backed up by an alternative in case it fails. Thus, helping the systems to recover from crisis and accidents.

More goods than are needed definition

Answers

Answer:

Surplus

Explanation:

Surplus refers to the situation where the quantity of goods and services available exceed the consumers' requirements. It is when a person, an organization, or a country has more of a product or service than they can consume.  A surplus results in either storage of the excess commodity or exporting to other countries.

A surplus is when supply exceeds demand.  A surplus is an excess supply.

Cost of goods sold reports the: Multiple Choice cost of merchandise purchased. cost times the quantity of goods sold. cost of merchandise available to sell. selling price times the quantity of goods sold.

Answers

Answer:

cost times the quantity of goods sold.

Explanation:

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