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]
2 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]2 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
What effects did the great depression have on the credit industry
NikAS [45]
It expanded the credit industry because all americans credit was effected by the great depression

8 0
3 years ago
Read 2 more answers
If you were in charge of developing a tax system for a country, how would you structure taxes? For example, who should pay the g
poizon [28]
There are 3 systems as far as considering the percentage, they are progressive, regressive and proportional, progressive is good as the rate of tax increases proportionally as the income increases...taxes can be used for long term development projects which will eventually be fruitful for the economy.
6 0
3 years ago
Read 2 more answers
Antonio’s makes the greatest pizza and delivers it hot to all the dorms around campus. Last week Antonio's supplier of pepperoni
Lynna [10]

Answer:

At first, It will have no impact.

Later it will make the equilibrium price go higher. Quantity unchanged

Explanation:

First The raw material cost increase in the pepperoni will decrease the profit of Antonio's pizzas with that ingredient. It will not have an impact on the pizzas market.

But once after, Antonio's decides to markup the price, to get their previous profit margin back, the price of the pizzas will increase and because is the only supplier around campus their demand will not react (low to any elasticity to price) to the price rise and accepts the new price.

7 0
3 years ago
What are inventions that help us manufacture,stay healthy,stay safe,and provide energy
My name is Ann [436]
<span>Some inventions could be:

System that reuses the water from your shower (provides more water, less cost)
Concussion Detector
Renewable Wave Power System (provide water energy)
An arm that can help you lift heavy stuff (helps your body stay safe)
Wind-Powered House (the way that would work is the wind hits your house and your house has sensors that transform the wind into energy to use in your home)
Gum that helps your teeth stay healthy and fixes them

Im not that good at coming up with ideas :)</span>
8 0
3 years ago
You have $10,000 to invest - $3,500 in Company A, the remaining amount in Company B. The expected returns for these stocks are 2
mihalych1998 [28]

Answer:

The expected return on the portfolio is:

16.75%

Explanation:

a) Data and Calculations:

                                Company A      Company B      Total

Investment                  $3,500              $6,500      $10,000

Expected returns          20%                    15%

Expected returns ($)   $700                $975         $1,675

Expected return on

portfolio = $1,675/$10,000 * 100 = $16.75%

b) The expected return on the portfolio is calculated as the returns on the portfolio in dollars divided by the total investment in the two companies, multiplied by 100.  This gives a value in percentage terms.

6 0
2 years ago
Other questions:
  • Which sentence about flexible spending accounts (FSAs) is true? A. The funds in the account remain for as long as you’re employe
    11·2 answers
  • Generally, filmmakers want movie titles that are short, memorable, appealing to consumers, and without legal restrictions. These
    12·2 answers
  • Sam wants to grow in his current role, and he decides to take a three-month skill enhancement course.
    14·1 answer
  • What are durable goods?
    7·1 answer
  • This step in international market research often relates to the cost of collecting primary data that can address the research pr
    15·1 answer
  • Present value with periodic rates. Sam​ Hinds, a local​ dentist, is going to remodel the dental reception area and add two new w
    10·1 answer
  • Miller's office building with an adjusted basis of $625,000 and a fair market value of $885,000 is condemned on December 30, 201
    11·1 answer
  • On November 1, 2021, New Morning Bakery signed a $207,000, 6%, six-month note payable with the amount borrowed plus accrued inte
    7·1 answer
  • For each of the following, indicate whether the idea is most closely associated with the first industrial revolution, the second
    14·1 answer
  • Two ways in which young entrepreneurs can benefit from the National Youth Development Agency​
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!