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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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A stock had returns of 18.58%, -5.58%, and 20.81% for the past three years. What is the variance of returns?
NemiM [27]

Answer:

Variance = 0.02141851

Explanation:

We first calculate the mean for the stocks

Mean = (0.1858 - 0.0558 + 0.2081) / 3

Mean = 0.3381 / 3

Mean = 0.1127

Variance = [(0.1858 - 0.1127)^2 + (- 0.0558 - 0.1127)^2 + (0.2081 - 0.1127)^2] / 3 -1

Variance = [0.0731^2 + (-0.1685^2) + 0.0954^2] / 2

Variance = 0.00534361 + 0.02839225 + 0.00910116 / 2

Variance = 0.04283702 / 2

Variance = 0.02141851

The variance of returns is 0.02141851

7 0
2 years ago
Traditionally, department stores almost exclusively offered soft goods. But now, most department stores focus on selling both ha
Studentka2010 [4]

Answer:

False

Explanation:

Traditionally, department stores sold both soft goods and hard goods. But now, most department stores focus almost exclusively on soft goods.

Soft goods refers generally to clothing and other textiles like bedding and fabrics.

Hard goods refers to a broad range of products like appliances, furniture, tools, electronics, etc.

5 0
3 years ago
Bain Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine, an inexpe
pochemuha

<u>Solution and Explanation:</u>

<u>Part a: </u>                                                                            

Revenue  5000 multiply 6.6   33000            

Unit Level Variable Cost:        

Material Cost  5000 multiply 2.7   -13500    

Labor Cost  5000 multiply 1.2   -6000    

Manufacturing Cost  5000 multiply 1.2   -6000    

Shipping and Handling  5000 multiply 0.3   -1500    

Sales Commission    0    

Contribution Margin    6000            

Should be accepted as it will increase profitability by $6000          

Part b1&b2:                                 Cost to Make  Cost to Buy          

Material Cost                40000*2.7  108000      

Labor Cost                40000*1.2  48000      

Manufacturing Cost  40000*1.2  48000      

Prod Supervisor Salary             72000      

Purchase Cost  40000*6.72               0  268800          

Total Cost                               276000  268800          

Should purchase from outside as cost is lower than making it      

Part b3:        

                                          Cost to Make  Cost to Buy            

Material Cost  60000 multiply 2.7     162000      

Labor Cost  60000 multiply1.2             72000      

Manufacturing Cost  60000*1.2  72000      

Prod Supervisor Salary             72000        72000    

Purchase Cost  60000*6.72              0           403200            

Total Cost                             378000        475200            

Should make in house as cost is lower            

Part c:  It should not be eliminated.              

Elimination will decrease profitability by $72000 which is being allocated company wide facility exp.  Before Allocation, actual profit is (168000-24000-72000)=$72000    

Loss is because of allocation of facility expenese, which will be allocated on other segment.

 

5 0
3 years ago
A(n) _____ is a variation of a referral where, in addition to requesting the names of prospects, the salesperson asks the prospe
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Answer: Introduction

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3 0
3 years ago
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Answer:

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Opening Balance              $12,000                       $7,100               $19,100

Income for the year                                                $7400              $7400

Dividend Paid                                                        ($2,100)             ($2,100)

Common stock issuance  <u> $6,900  </u>                  <u>                 </u>           <u> $6900  </u>

End of the year Balance    $18,900                    $12,400             $31300

3 0
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