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fiasKO [112]
3 years ago
11

How much would it cost for Chester Corporation to repurchase all its outstanding shares if new brokerage fees totaled 1% of the

underlying transaction?
Select: 1

$85.3 million

$76.4 million

$83.7 million

$78.0 million

Business
1 answer:
Vinvika [58]3 years ago
6 0

Answer:

$78.0 million

Explanation:

Cost of repurchase = Number of shares*Share price/(1-1%)

Cost of repurchase = $3,352,720 * $23.02/(1-1%)

Cost of repurchase = $3,352,720 * $23.02/(1 - 0.01)

Cost of repurchase = $3,352,720 * $23.02/0.99

Cost of repurchase = $3,352,720 * $23.25

Cost of repurchase = $ 77,950,740

Cost of repurchase = $78.0 million

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The Nixon Corporation’s common stock has a beta of 1.3. If the risk-free rate is 4.4 percent and the expected return on the mark
Xelga [282]

Answer:

11.68%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.4% + 1.3 × (10% - 4.4%)

= 4.4% + 1.3 × 5.6%

= 4.4% + 7.28%

= 11.68%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium

8 0
3 years ago
Multinational Corporations (MNCs, sometimes called TNCs) are:
BabaBlast [244]

Answer:

d. Non-state (non-governmental) actors, focused on profit

Explanation:

Non State actor can literally be defined as an organization that are not funded by the government.

Multinational Corporations (MNCs) and Transnational companies (TNCs) are organizations that have companies in several countries and are business oriented focused on making profit.

Therefore, Multinational Corporations (MNCs, sometimes called TNCs) are Non-state (non-governmental) actors, focused on profit

4 0
3 years ago
When builders were constructing a sidewalk they forgot to include an expansion joint between two of the?
Komok [63]
When builders were constructing a sidewalk they forgot to include an expansion joint between two of the segments, L= one.two m at to=twenty degree C.
Expect the reverse ends of each segment are fixed and the linear enlargement coefficient is = twelve.three x ten-six degree C-one.
4 0
3 years ago
Which type of reputation is affected by material a person posts to an online discussion forum that is accessed only by people in
liraira [26]

Answer:

professional and private

Explanation:

Reputation can be regarded as an opinion or believe about something, individual or organization, it is the judgement or the information known by people about an individual or organization. When this reputation is been accessible by a specific kind of people i.e not by the general public, it is reffered to as professional and private reputation.

It should be noted that professional and private reputation is affected by material a person posts to an online discussion forum that is accessed only by people in his or her company.

7 0
3 years ago
Southern Wear stock has an expected return of 15.1 percent. The stock is expected to lose 8 percent in a recession and earn 18 p
kari74 [83]

Answer:

15.26%

Explanation:

Given:

Expected return = 15.1% = 0.151

Expected loss in recession = - 8% = - 0.08   [negative sign depicts loss]

Expected earning in a boom = 18% = 0.18

Probabilities of a recession = 2% = 0.02

Probabilities of a normal economy = 87% = 0.87

Probabilities of a boom = 11% = 0.11

Now,

Expected return = ∑ (Probability × Return)

or

0.151 = 0.02 × ( - 0.08) + 0.11 × 0.18 + 0.87 × Return on normal economy

or

0.151 = - 0.0016 + 0.0198 + 0.87 × Return on normal economy

or

0.151 - 0.0182  = 0.87 × Return on normal economy

or

Return on normal economy = 0.1526

or

= 0.1526 × 100%

= 15.26%

4 0
3 years ago
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