Answer: 40.8824 million
Explanation:
From the question, we are informed that Dye Trucking raised $290 million in new debt and used this to buy back stock and that after the recap, Dye's stock price is $8.5.
If Dye had 75 million shares of stock before the recap, the number of shares that it'll have after the recap goes thus:
The number of shares repurchased is:
= $290million/$8.5
= 34,117,647
= 34.1176 million
Shares after the recap will now be:
= 75 million - 34.1176 million
= 40.8824 million
Answer:
Applied Manufacturing Overheads are $102,000
Overapplied Manufacturing overheads are $18,000
Explanation:
Under or over applied manufacturing overhead can be determined by comparing the actual and applied manufacturing overheads.
Applied overheads can be calculated by multiplying pre-determined overhead rate and actual level of quantity. Predetermined overhead rate is calculated using estimated overhead and estimated activity on which overheads are applied.
In this question the predetermined overhead rate is 120% of direct labor cost.
Applied overhead = Direct labor cost x 120% = $85,000 x 120% = $102,000
Actual overheads incurred = $84,000
Overapplied Manufacturing overheads = $102,000 - $84,000 = $18,000
Answer:
You will earn more interest with a compound interest savings account
Explanation:
The compound interest takes the initial capital or balance in the saving account and the previous interest generated to calculate new interests