1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nata [24]
3 years ago
15

Shoe Box Stores is currently an all-equity firm with 25,000 shares of stock outstanding. Management is considering changing the

capital structure to 35 percent debt. The interest rate on the debt would be 8 percent. Ignore taxes. Jamie owns 600 shares of Shoe Box Stores stock that is priced at $22 a share. What should Jamie do if she prefers the all-equity structure but Shoe Box Stores adopts the new capital structure?a. Borrow money and buy an additional 180 shares b. Borrow money and buy an additional 210 shares c. Keep her shares but loan out all of the dividend income at 8 percent d. Sell 210 shares and loan out the proceeds at 8 percent e. Sell 180 shares and loan out the proceeds at 8 percent
Business
1 answer:
denpristay [2]3 years ago
7 0

Answer:

d. Sell 210 shares and loan out the proceeds at 8 percent

Explanation:

Since the firm is using 35 percent leverage, Jamie can offset the firm's leverage by selling shares and loaning out 35 percent of her investment at 8 percent interest.

Number of shares to be sold = 600 shares * 0.35 = 210 shares

You might be interested in
Identify a true statement about International Organization for Standardization (ISO) 9000:2000.
photoshop1234 [79]

Answer: The correct answer is "D. Its standards apply to all types of businesses, including electronics and chemicals.".

Explanation: The ISO 9000 standards are a set of Quality Control and quality management, established by the International Organization for Standardization (ISO). They can be applied in any type of organization or activity oriented to the production of goods or services. The standards include both the minimum content and the specific implementation guides and tools as well as the audit methods.

5 0
3 years ago
Under one type of rating law, insurers are free to change rates and to use modified rates immediately. However, the new rate mus
Nat2105 [25]

Answer:

use-and-file rating law

Explanation:

File-and-use rating laws are insurance rules that allow an insurance company to use new rates before they are approved by the state. File-and-use rating laws allow the insurer to use new rates immediately, with the risk that any rate change will be mitigated if the insurance regulator determines the change is not appropriate.

6 0
3 years ago
True or false: the nipp information-sharing approach constitutes a shift from a networked model to a strictly hierarchical struc
bija089 [108]
<span>True.
  The purpose of national infrastructure sharing plan is to ensure that America is safer and better equipped to handled incidental and deliberately orchestrated mischief that will put lives or property of the American people at stake. The measures will lessen threat and information won't be a one sided thing especially when as they affect the safety of lives.</span>
6 0
3 years ago
Read 2 more answers
This year Amy purchased $2,000 of equipment for use in her business.However, the machine was damaged in a traffic accident while
Otrada [13]

Answer:

a. After the accident, Amy had the choice of repairing the equipment for $1,800 or selling the equipment to a junk shop for $300.Amy sold the equipment.What amount can Amy deduct for the loss of the equipment?

Amy can deduct $2,000 - $300 = $1,700 as casualty loss. Casualty losses occur due to unexpected and sudden events that damage or destroy assets.

b. After the accident, Amy repaired the equipment for $800.What amount can Amy deduct for the loss of the equipment?

Amy can deduct $1,800 as casualty loss. She can deduct the lesser between the asset cost and the cost or repairing it.

c. After the accident, Amy could not replace the equipment so she had the equipment repaired for $2,300.What amount can Amy deduct for the loss of the equipment?

Amy can deduct $2,000 as casualty loss. She can deduct the lesser between the asset cost and the cost or repairing it.

5 0
3 years ago
Question 13 What is the value of Country 2's net exports?
blondinia [14]
Option B, $45 Billion
6 0
3 years ago
Other questions:
  • Because of the adverse selection problem loading...​:
    5·1 answer
  • Montana Furniture Mart sold $120,000 of furniture on June 30 and accepted the customer's $120,000 10% 1-year note payable in exc
    14·1 answer
  • Which of the following choices best completes the following statement? Explain. An investor with a higher degree of risk aversio
    10·1 answer
  • Ocean water contains 0.9 ounces of gold per ton. Method A costs $550 per ton of water processed and will recover 90% of the meta
    9·1 answer
  • The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were origina
    11·1 answer
  • Please help, please
    7·1 answer
  • Benefits like improved water quality and air quality, increases in biodiversity and habitat protection, and reductions in greenh
    10·1 answer
  • For the month of June, Beeman Corp. estimated sales revenue at $600,000. Beeman pays sales commissions that are 4% of sales reve
    15·1 answer
  • Which functional area in a retail store usually collects, stores, and processes data and information used in the checkout proces
    9·1 answer
  • How much total estimated warranty expense does arctica report for the current year?
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!