All categories

3 years ago

All of the following are reasons for a company to repurchase its previously issued stock, except:

Business

1 answer:

gladu [14]3 years ago

4 0

Answer:

The correct answer is option d. to increase the shares outstanding.

Explanation:

A company can repurchase its previously purchased stocks to resell to the employees, for bonuses to employees and to even support the market price of the stock.

But the company certainly will not repurchase its previously purchased stocks to increase the shares outstanding.

I hope the answer is helpful.

Thanks for asking.

You might be interested in

An investment project has annual cash inflows of $4,400, $3,900, $5,100, and $4,300, for the next four years, respectively. The

RoseWind [281]

Answer:

Discounted payback period shall be as follows:

a. 1 year 7.36 months

b. 2 years 3.27 months

c. 3 years 2.9 months

Explanation:

a. Payback period in case of cash outflow = $5,700

For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.

Year Cash Flow PV Factor PV of Cash Flow Cumulative

Cash Flow

0 - $5,700 1 - $5,700 -5,700

1 $4,400 0.877 $3,858.8 -$1,841.2

2 $3,900 0.770 $3,003 $1,161.8

Since the cumulative cash flows are positive in 2nd year payback period =

1 + $\frac{1,841.2}{3,003} \times 12$ = 1 year and 7.36 months

b. Payback period in case of cash outflow = $7,800

For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.

Year Cash Flow PV Factor PV of Cash Flow Cumulative

Cash Flow

0 - $7,800 1 - $7,800 -7,800

1 $4,400 0.877 $3,858.8 -$3,941.2

2 $3,900 0.770 $3,003 -$938.2

3 $5,100 0.675 $3,442.5 $2,504.3

Since the cumulative cash flows are positive in 3rd year payback period =

2 + $\frac{938.2}{3,442.5} \times 12$ = 2 years and 3.27 months

b. Payback period in case of cash outflow = $10,800

For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.

Year Cash Flow PV Factor PV of Cash Flow Cumulative

Cash Flow

0 - $10,800 1 - $10,800 -$10,800

1 $4,400 0.877 $3,858.8 -$6,941.2

2 $3,900 0.770 $3,003 -$3,938.2

3 $5,100 0.675 $3,442.5 -$495.7

4 $4,300 0.592 $2,545.6 $2,049.9

Since the cumulative cash flows are positive in 4th year payback period =

3 + $\frac{495.7}{2,049.9} \times 12$ = 3 years and 2.9 months

Final Answer

Discounted payback period shall be as follows:

a. 1 year 7.36 months

b. 2 years 3.27 months

c. 3 years 2.9 months

7 0

4 years ago

The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,470,000, $154,000 in the common stock account

devlian [24]

Answer:

The cash flow to creditors during 2014 was $139000,the amount by which net working capital investment has reduced.

The stockholders invested $241,000 more into the business

The net cash flows from asset is the $1,100,000 net firm's capital spending

Lastly,the operating cash flow is $240,000 as calculated below

Explanation:

Net working capital investment denotes the amount of cash the company parted with in 2014 in financing its current obligations.

Stockholders as the owners of the company made more cash available to the company in 2014 by investing more cash resources in it as follows:

Common stock account increased by $10000($164000-$154000)

Additional paid-in surplus increased by $300000($3090000-$2790000)

The gives $400000 cash from stockholders minus dividends of $159000

Operating cash flow

Net income $0

add interest $101000

Reduction in net working capital $139000

Operating cash flow $240000

6 0

4 years ago

. Joey purchased an n-year par-value 2,000 bond that had a coupon rate of 9% convertible quarterly. Todd purchased a par-value b

kaheart [24]

Answer:

what is the formula

Explanation:

8 0

3 years ago

Scenario

alekssr [168]

Answer:

Create a guide that security personnel will use that includes procedures for implementing an access control change.

Explanation:

The procedure guide must contain the steps Always Fresh security personnel should take to evaluate and

implement an access control change. You can assume any change requests you receive are approved.

Ensure that your procedures include the following:

▪ Status or setting prior to any change

▪ Reason for the change

▪ Change to implement

▪ Scope of the change

▪ Impact of the change

▪ Status or setting after the change

▪ Process to evaluate the change

Required Resources

▪ Internet access

▪ Course textbook

Submission Requirements

▪ Format: Microsoft Word (or compatible)

▪ Font: Arial, size 12, double-space

▪ Citation Style: Follow your school’s preferred style guide

Self-Assessment Checklist

▪ I created a procedure guide that provides clear instructions that anyone with a basic technical

knowledge base can follow.

▪ I created a well-developed and formatted procedure guide with proper grammar, spelling, and

punctuation.

▪ I followed the submission guidelines.

7 0

3 years ago

Diane's Donuts will begin selling donuts next week. Diane figures that the average variable cost to make each donut will be cons

saw5 [17]

Answer:

Option (d) is correct.

Explanation:

Given that,

Average variable cost = $0.30 for each donut

Fixed cost: Cost of rent and machinery = $20,000

If the number of donuts produced and sold in one year is 36,500, then

Average fixed cost:

= Total fixed cost ÷ Number of units sold

= $20,000 ÷ 36,500

= $0.547 or $0.55

Therefore, the average fixed costs be $0.55 if she sells 36,500 donuts in one year.

8 0

3 years ago