Answer:
Digital Fruit
The expected market price of the common stock after the announcement is:
$20 per share.
Explanation:
Outstanding number of shares = 40 million
Market price of outstanding shares = $20 a share
Total market capitalization = $800 million
Debts introduced = $310 million
Market capitalization after the debt issue = $490 million ($800 - 310 million)
Number of shares bought back = $310 million /$20 = 15,500,000
Outstanding number of shares after the buy-back = 40 million minus 15.5 million
= 24,500,000 shares
Expected market price of the common stock after the announcement
= $490,000,000/24,500,000
= $20 per share
Answer:
Canceled checks.
Invoices.
Cash register receipts.
Computer-generated receipts.
Credit memo for a customer refund.
Employee time cards.
Deposit slips.
Purchase orders
Explanation:
That is all i think
Answer:
Economic loss=$(28,000)
Explanation
Accounting profit is the difference between total revenue and explicit cost.
Explicit cost refers to all cash and non cash cost incurred to produce the goods and services
Economic profit = sales revenue - explicit cost - implicit cost
Implicit cost is the opportunity cost - the value of the next best alternative sacrificed to produce the product.
The opportunity cost in the case is the worth of the offer to work elsewhere which is equal to $25,000
Economic profit = (7,000× 6) - 45,000- 25,000=$ (28,000)
Economic loss=$(28,000)
Answer:
The WACC before bond issuance is 3.9% and the WACC after bond issuance is 3.71%
Explanation:
In order to calculate the WACC before bond issuance
, we would have to calculate first the cost of equity using capital asset pricing model
.
So Using CAPM we have Rf + Beta x Market risk premium
=
0.5% + 0.85 * 4%
= 3.9%
. cost of equity
Therefore WACC before bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= 3.9%
. WACC before bond issuance will be equal to cost of equity in this case as there is no debt issue.
In order to calculate the WACC after bond issuance we make the following calculation:
WACC after bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= (3.9% x 0.9) + (2% x 0.1)
= 3.51% + 0.2%
= 3.71%
