Answer:
Value of firm in levered plan = $4,930,000
Explanation:
We can find the price per share by dividing the amount of debt used to repurchase shares by the number of shares repurchased. Doing so we get the share price:
Share price = $1,450,000 / (170,000 -120,000)
Share price = $29
Now the value of firm in all equity plan = $29 x 170,000 = $4,930,000
Value of firm in levered plan = $29 x 120,000 + $1,450,000
Value of firm in levered plan = $4,930,000
Answer:
That is $2,000 loss
Explanation:
After the hurricane Oscar received $140,000 for his loss, the adjusted basis for his property was $130,000 so he had a gain of 140,000- 130,000=$10,000.
According to Sec. 1033(a)(2) since the new property that was built (the replacement) was similar we will recognise the amount received from the insurance company ($140,000) to the extent that it pays for the replacement property.
That is
Gain or loss = amount paid by insurance company- cost of replacement property
Gain or loss= 140,000- 142,000
Gain or loss= -$2,000
That is $2,000 loss
The commission for purchasing five round lots of a stock selling for $130 is $65.
<h3>What is round lots of a stock?</h3>
A specified quantity of securities to be traded on an exchange is known as a round lot. In the stock market, a round lot is defined as 100 shares or a bigger number that may be divided in half equally.
1 round lots = 100 shares
5 round lots = 500 shares
The commission structure on a stock purchase is $45 plus $0.04 per share.
For 500 shares, the commission is
= 45 + 0.04×500
= 65
Therefore, the commission for purchasing 500 shares of stock selling for $130 is $65.
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Answer:
The computation is shown below:
Explanation:
The computation is shown below:
Current ratio = current assets ÷ current liabilities
where,
Current assets = cash + inventory + account receivables
= $500 + $300 + $200
= $1000
Current liabilities is
= $200 + $400
= $600
So, the current ratio is
= $1,000 ÷ 600
= 1.67 times
Debt Ratio is
= Total Liabilities ÷ Total Assets
= $600 ÷ $1,500
= 40%
TIE is Time Interest Earned ratio
= EBIT ÷ Interest Expense
= $5,000 ÷ $2,000
= 2.5
Profit margin is
= Net Income ÷ Total Sales
= $800 ÷$10,000
= 8%
And,
Total asset turnover is
= Sales ÷ Total Assets
= $10,000 ÷ $1,500
= 6.67
