Answer: a. $5.50
b. $6.1
c. $3,500,000
Explanation:
a. From the question, we are informed that Hawar International is a shipping firm with a current share price of $5.50 and 10 million shares outstanding and that Hawar announces plans to lower its corporate taxes by borrowing $20 million and repurchasing shares.
We are informed that Hawar announces plans to lower its corporate taxes by borrowing $20 million and repurchasing shares. This is a transaction and therefore, the value if the share won't be changed. So, the value for the share will still be $5.50.
b. If the only imperfection is corporate tax rate of 30%, the share price after this announcement will be:
= [30% × (20million/10million)] + $5.50
= [0.3 × 2] + $5.50
= $0.6 + $5.50
= $6.1
Therefore, the share price be after this announcement will be $6.1.
c. If the share price rises to $5.75 after this announcement, the PV of financial distress costs Hawar will incur as the result of this new debt will be:
= ($6.1 - $5.75) × 10,000,000
= $0.35 × 10,000,000
= $3,500,000
Answer: B) Short range
Explanation:
Short range time horizon forecasting is prediction of the time span range till which the decisions regarding production, investments etc will work.This span is from three weeks lasting upto 1 year for making plans and accurate or actual predictions .It is used in job plan, work-force stages etc.
Other options are incorrect because long, medium or intermediate are the horizon that can't be predicted easily as compared to short range horizon for making decision based on few weeks span.Thus, the correct option is option(B).
Answer:
The options are:
A $34,850.
B $163,350.
C $128,500.
D $188,200.
$ 163,350.00,option B is correct
Explanation:
At the beginning of the current year ,the stockholders equity is the difference between total assets of $877,000 and total liabilities of $748,500 i.e $128,500
.
However,the increase or decrease to stockholders' equity in the current year is the difference between increase in total assets of $59,700 and the the increase in liabilities of $24,850 i.e $ 34,850.00
Hence stockholders' equity=the initial stockholders' equity+increase=$128,500+$ 34,850=$ 163,350.00
True. Good management can aid success of a business entity. Because those in leadership positions train the employees beneath them, when they are good successful leaders, those under them will receive good training. If everyone within the organization is on the same page and works together the output of work will be much more productive. Good productivity creates good success.
Explanation:
I would leave out the part about the people you currently work with and just state that you are a team player and the you love to be around people who are outgoing and you are very sociable and a quick learner