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Ostrovityanka [42]
3 years ago
12

You are doing some analysis on the has a market value that is equal to its book value. Currently, the firm has excess cash of $1

,000 million and other assets of $9,000 million. Equity is worth $10,000 million. The firm has 700 million shares of stock outstanding and net income of $1,575 million. What will the new earnings per share be if the firm uses 25 percent of its excess cash to complete a stock repurchase?
Business
2 answers:
ikadub [295]3 years ago
8 0

Answer:

the new earnings per share will be 231 cents

Explanation:

Earnings per share is Earnings attributable to each Common Share.

Earnings Per Share = Earnings attributable to Holders of Common Stock/ Weighted Average Number of Common Shares

                                = $1,575 million/ (700 million-250/10000×700 million)

                                = $1,575 million/(700 million-17,2 million)

                                = 231 cents

wariber [46]3 years ago
8 0

Answer:

Earnings per share is $2.31

Explanation:

value of one share=$10,000 million/700 million=$14.29

25% of excess cash =25%*$1000 million=$250 million

Number of shares repurchased=$250 million/$14.29=17.5 million

Outstanding shares after share repurchase=700 million-17.5 million

                                                                       =682.5 million

Earnings per share =earnings attributable to common stock/number of common stock

earnings stands at $1,575 million

number of common stock 682.5 million

Earnings per share=1,575 million/682.5 million

Earnings per share=$2.31 or 231 cents

The new earnings per share is $2.31 or 231 cents as shown in the step by step analysis above.

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xxMikexx [17]

Answer:

Please see answers below.

Explanation:

A. Three important Items to double check before submitting a loan application to underwriting.

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• Calculations performed accurately: This means that calculations such as borrower's income, qualifying ratios are calculated accurately and also double checked for the purpose of the loan underwriting.

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B. List at least two things you would be sure to tell a borrower in preparation for closing

• I will seek clarity in terms of the money borrower would be bringing to the closing table.

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3 0
3 years ago
Arbor Corporation had reported the following amounts at December 31, 2014: Sales revenue $184,000: ending inventory $11,600: beg
Rudiy27

Answer:

The cost of goods available for sale is $74100.

Explanation:

The cost of goods available for sale is the total cost of the inventory that a business has available during a period of time for sale. The cost of goods available for sale is calculated by adding the beginning inventory with the cost of goods purchased.

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5 0
3 years ago
Suppose the government requires each firm to reduce sulfur dioxide emissions by an equal amount such that total emissions are re
stealth61 [152]

Answer:

is not efficient because firms can have different costs of reducing pollution.

Explanation:

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7 0
3 years ago
The financial analysis component of a business plan is to describe _____.
umka2103 [35]
The financial analysis component of a business plan is to describe the viability, stability and profitability of a business, sub-business or project.
<span>It is an aspect of the overall business finance function which includes the examining historical data to acquire information about the current and future financial health of a company, business or project.</span>
8 0
3 years ago
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WITCHER [35]

Answer:

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=> Net Cash = $40,000 - $ 4,000 + $2,000 + $3,000 - $5,000

=> Net Cash = $36,000

3 0
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