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
OlgaM077 [116]
3 years ago
5

TJ's has a market value equal to its book value. Currently, the firm has excess cash of $218,500, other assets of $897,309, and

equity of $547,200. The firm has 40,000 shares of stock outstanding and net income of $59,800. Management has decided to spend 15 percent of the excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?
Business
1 answer:
rodikova [14]3 years ago
8 0

Answer:

Explanation:

Given:

Excess cash = $218,500

Assets = $897,309

Equity = $547,200

outstanding shares of stock = 40,000

Net income = $59,800.

Repurchase program = 15% of excess cash

Book value per share (price per share) = equity/number of shares

= $547200/40000

= $13.68 per share

Total cost of repurchase program = percentage of excess cash used × value of excess cash

= 15/100 × 218500

= $32775

Total number of shares bought in repurchase program = total cost of the repurchase program/price per share

= $32775/$13.68

= 2395.8 shares

= 2395 shares

You might be interested in
Explain the differences between civil and criminal law.
Furkat [3]
Criminal laws<span> regulate </span>crimes<span>, or wrongs committed against the government. </span>Civil laws <span>regulate disputes </span>between<span> private parties.
I found this in the internet so I´m not really sure.</span>
7 0
3 years ago
A change in depreciation method is treated as a change in estimate that is achieved by a change in accounting principle, and is
viktelen [127]

A change in depreciation method is treated as a change in estimate that is achieved by a change in accounting principle, and is accounted for prospectively in the current and future periods.

The rules and regulations that businesses and other organizations must abide by when reporting financial data are known as accounting principles. These regulations standardize the terminology and procedures that accountants must employ, making it simpler to analyze financial data.

A unified set of accounting guidelines, methods, and standards known as generally accepted accounting principles (GAAP) were released by the Financial Accounting Standards Board (FASB).

The consistency that accounting principles establish enables more accurate and effective viewing of financial statements and reporting for businesses.

Learn more about accounting principles here

brainly.com/question/5399294

#SPJ4

3 0
2 years ago
Savvy consumers often purchase automobiles from dealerships at the end of the quarter or at year-end since dealers who meet thei
leonid [27]

Answer:

cumulative quantity discounts

Explanation:

Many customer’s purchase items and commodities at the end of the seasons because at year-end, the sellers, manufacturers and dealers offer various discounts to clear the inventory. Likewise, customers of savvy often buy commodities at the end of a quarter or a season to earn cumulative quantity discounts; it is a discount that is given to consumers who buy a specific amount of quality.

8 0
3 years ago
Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note t
jeka94

Answer:

the project's MIRR is 13.84 %

Explanation:

MODIFIED INTERNAL RATE OF RETURN (MIRR)

-It is the rate that causes the Present Value of the Terminal Value (Future Cash flows at the end of the Project) to equal Present Value of Cash outflows.

-MIRR assumes a reinvestment rate at the end of the project

The First Step is to Calculate the Terminal Value at end of year 3.

Terminal Value (FV) = Sum of (PV x (1 + r) ^ 3 - n)

                   = $450 x (1.09) ^ 2 + $450 x (1.09) ^ 1 + $450 x (1.09) ^ 0

                   = $534.65 + $490.50 + $450.00

                   = $1,475.15

The Next Step is to Calculate the MIRR using a Financial Calculator :

(-$1,000)          CFj

0           CFj

0           CFj

$1,475.15   CFj

Shift IRR/Yr 13.84 %

Therefore, the project's MIRR is 13.84 %.

6 0
3 years ago
Pluto Inc. is computer technology corporation that has been manufacturing laptops for the last five years. Recently, in the face
Delicious77 [7]

Answer:

diversification

Explanation:

According to my research on ,different financial strategies I can say that based on the information provided within the question this is an example of diversification. This is the process of a business separating or varying it's range of products in their operations in order to reduce their risks in a certain market.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
Other questions:
  • The poverty rate for children under 18 in texas is while it is in the united states as a whole
    8·1 answer
  • Susan opened a savings account with $750 at 2.9 percent annual interest. If she keeps the money in the account for 2 years, what
    12·1 answer
  • According to the text, several new technologies are expected to have dramatic impacts on marketing. Among those cited are
    15·1 answer
  • Paul's Landscaping purchased $500 of office supplies on credit. The company's policy is to initially record prepaid and unearned
    9·1 answer
  • For each of the following separate cases, prepare adjusting entries required of financial statements for the year ended (date of
    6·1 answer
  • Overboard Corporation uses the FIFO method in its process costing system. In the Cutting Department in June, units were 80% comp
    7·1 answer
  • A company has a chief executive officer and a limited corporate staff, with line managers in dominant organizational areas, such
    10·1 answer
  • The diagnostic process is _____. a systematic approach to understand the organization none of the answers performed exclusively
    6·1 answer
  • g Privett Company Accounts payable $33,411 Accounts receivable 66,433 Accrued liabilities 6,512 Cash 22,494 Intangible assets 37
    9·1 answer
  • If idle resources are put to use and more output is produced in an economy, there will be:____.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!