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romanna [79]
3 years ago
7

Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40

million per year in subsequent years and will pay out these future free cash flows as regular dividends. Omicron's unlevered cost of capital is 8% and there are 10 million shares outstanding. Omicron's board is meeting to decide whether to pay out its $50 million in excess cash as a special dividend or to use it to repurchase shares of the firm's stock. Assume that Omicron uses the entire $50 million in excess cash to pay a special dividend. The amount of the regular yearly dividends in the future is closest to ________.
Business
1 answer:
Sergeu [11.5K]3 years ago
5 0

Answer:

$4 per share

Explanation:

The formula to compute the regular yearly dividends in the future is shown below:

= Free cash flow ÷ outstanding shares

= $40 million ÷ 10 million shares

= $4 per share

It shows a relationship between the free cash flow and the outstanding shares

All other information which is given is not relevant. Hence, ignored it

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Fofino [41]

Integrated marketing communications is being used by Lush Lawns to promote its business, as they are using the same logo and shade of green in all forms of communication including its online ads, truck signage, Web site, and business cards.

<h3 /><h3>What is Integrated marketing communications?</h3>

IMC is the process of combining marketing communication aspects such as public relations, social media, and audience analytics to create an integrated marketing communication strategy.

Business development concepts, and advertising into a brand identity that is consistent across many media channels.

Thus they are using Integrated marketing communications.

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5 0
1 year ago
Assuming periodic inventory procedure, what effect would an understatement of ending inventory have on the different items on th
Serjik [45]

Answer:

The understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.

Explanation:

The relationship between the elements of inventory in a financial statement is as shown below,

Opening balance + purchases - cost of goods sold = closing balance

As such, the understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.

5 0
3 years ago
What is a conglomerate? a large corporation that produces and sells its goods and services throughout the world the combination
miskamm [114]

Answer:

A conglomerate is a business combination merging more than three businesses that make unrelated products.

Explanation:

A conglomerate is a group of companies with different activities. This business concept spread to Europe from the United States after World War II. The benefits were considered to increase the company's long-term profitability by spreading risk to various business areas.

However, conglomeration often led to an increase in administrative costs. Furthermore, the conglomerate's management rarely had the competence to handle a number of companies in different industries. The conglomerates that were listed on the stock exchange were regularly valued lower than the total market value of the subsidiaries, indicating that the stock market did not believe in the very idea of ​​creating such corporate groups. The risk diversification that the conglomerate was aiming for could equally well be achieved by the individual investor in his own equity portfolio. Therefore, since the 1970s, many conglomerates have split up, and most companies have instead focused on creating competitive advantages through their core business.

6 0
3 years ago
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Given the following information, calculate the point in total funding where the firm will exhaust available retained earnings. b
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Search up A gardener can increase the number of dahlia plants in an annual garden by either buying new bulbs each year or dividing the existing bulbs to create new plants . The table below shows the expected number of bulbs for each method

Part A
For each method,a function to model the expected number of plants for each year

Part B
Use the Functions to Find the expected number of plants in 10 years for each method.

Part C
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3 years ago
______ is exploiting a distinctive competence or improving efficiency for competitive advantage. (a) Cooptation (b) Coalition (c
Bas_tet [7]

Answer:  Competitive aggression is exploiting a distinctive competence or improving internal efficiency for competitive advantage. Your answer is D.

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3 years ago
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