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barxatty [35]
3 years ago
14

The Gable Inn is an all-equity firm with 16,000 shares outstanding at a value per share of $14.50. The firm is issuing $50,000 o

f debt and using the proceeds to reduce the number of outstanding shares. How many shares of stock will be outstanding once the debt is issued
Business
1 answer:
sukhopar [10]3 years ago
4 0

Answer:

12,552 shares

Explanation:

Data provided:

Initial outstanding shares of the firm = 16,000 shares

Value of each share = $14.50

Debt issued = $50,000

Now,

the number of shares used for issuing for $50,000 debt

= Debt issued / value of each share

on substituting the respective values, we have

the number of shares used for issuing for $50,000 debt

= $50,000 / $14.50

= 3448.27 ≈ 3448 shares

Now,

The shares of stock that are outstanding once the debt is issued =

= Initial outstanding shares -  shares used for issuing for $50,000 debt

= 16,000 - 3448

= 12,552 shares

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Explanation:

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3 years ago
What is the SBA intended to do ?
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Answer:

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SBA loans are made through banks, credit unions and other lenders who partner with the SBA. The SBA provides a government-backed guarantee on part of the loan. Under the Recovery Act and the Small Business Jobs Act, SBA loans were enhanced to provide up to a 90 percent guarantee in order to strengthen access to capital for small businesses after credit froze in 2008. The agency had record lending volumes in late 2010.

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Explanation:

3 0
3 years ago
The financial ratio that measures the accounting profit per dollar of book equity is referred to as the:
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Answer:

Return on equity.

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

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3 years ago
White Pearl Cosmetics markets skin care products for teenage girls between 16 and 19. In approaching its international markets,
Anna35 [415]
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3 years ago
The following budgeted information is provided: Month 1 2 3 Sales in units 15,000 20,000 18,000 Production in units 16,000 22,00
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Answer:

Purchases= 17,200 pounds

Explanation:

Giving the following information:

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