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
AVprozaik [17]
4 years ago
10

Best Bagels, Inc. (BB) currently has zero debt. Its earnings before interest and taxes (EBIT) are $130,000, and it is a zero gro

wth company. BB’s current cost of equity is 13%, and its tax rate is 25%. The firm has 30,000 shares of common stock outstanding selling at a price per share of $25.
Refer to the data for Best Bagels, Inc. (BB). Now assume that BB is considering changing from its original capital structure to a new capital structure with 40% debt and 60% equity. This results in a weighted average cost of capital equal to 11.7% and a new value of operations of $833,333. Assume BB raises $333,333 in new debt and purchases T-bills to hold until it makes the stock repurchase. What is the stock price per share immediately after issuing the debt but prior to the repurchase?

a. $20.65
b. $25.00
c. $18.58
d. $27.78
e. $30.19
Business
1 answer:
olga nikolaevna [1]4 years ago
3 0

Answer:

d. $27.78

Explanation:

The computation of the stock price per share is shown below:

= New value of operations ÷ common stock outstanding shares

= $833,333 ÷ 30,000 shares

= $27.78

Simply we divide the new value of operations or the equity value by the common stock outstanding shares so that the correct stock price per share can come

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

You might be interested in
Why does amount of debt or money owed have as much weight as credit history in determining a person’s credit score?
Sati [7]
<span>Your debt to income ratio determines how likely you are able to make your payments. When a high percentage of your available credit is been used, this can indicate that your money is overextended, and you may be more likely to make late and or missed payments.</span>
3 0
3 years ago
Read 2 more answers
What analysis feature of a decision support system (DSS) pinpoints the region that generated the highest total sales
DedPeter [7]

Answer:

exception reporting

Explanation:

A decision support system (DSS) can be regarded as a computerized program that is utilized in supporting determinations as well as judgments, and courses of action s regards a

an organization or a business.

An exception reporting can be regarded as process of using document which states out the instances whereby actual performance is been deviated from expectations in a significantly manner, this is usually in a negative direction. The main reason for this report is to align the attention of management on areas that requires immediate action.

It should be noted that the analysis feature of a decision support system (DSS) pinpoints the region that generated the highest total sales is exception reporting.

6 0
3 years ago
The modern term used to describe the management of people is
kvasek [131]
Answer:  human resource management . 
______________________________________________
7 0
4 years ago
in a high- work system, a firm's technology, organizational structure, people, and processes work together seamlessly. this resu
leva [86]

In a high-work system, a firm's technology, organizational structure, people, and processes work together seamlessly. This results in the firm having an advantage in the competitive environment performance.

The definition of technology is the software of scientific information for practical functions or packages. Era makes use of medical concepts and applies them to exchange the environment in which people stay. Technology can also use clinical concepts to advance industry or different human buildings.

Information technology is critical in our lives as it enables us to address ordinary dynamic matters. Technology offers numerous tools to enhance improvement and exchange statistics. Both these things are the goal of IT to make obligations simpler and to clear up many issues.

Technology is the way we practice medical understanding for sensible functions. It includes machines (like computer systems) but also strategies and approaches (just like the manner we produce computer chips). It'd look like all era is most effective electronic, however that is simply maximum cutting-edge technology.

Learn more about technology here brainly.com/question/7788080

#SPJ4

3 0
2 years ago
Compare and contrast the benefits associated with market and command economies
k0ka [10]

Answer:

A mixed economic system has features of both a command and a free-market system.because it is partly controlled by the government and partly based on the forces of supply and demand. Most of the main economies in the world are now mixed economies, which operate under a combination of socialism and capitalism, and governments in most mixed economies use fiscal or monetary policies to stimulate growth during economic slowdowns. This may come in the form of corporate bailouts, changes in interest rates, or other stimulus packages.

6 0
3 years ago
Other questions:
  • Ocean Auto Parts Company uses the direct method to prepare its statement of cash flows. Refer to the following information repor
    13·1 answer
  • A first step when considering a career is to________.
    6·2 answers
  • A PHLX Jan 80 Swiss Franc Call contract is quoted at 2 when the Swiss Franc closes at 77. The contract is:_______
    6·1 answer
  • The amount of the outstanding checks is included on the bank reconciliation as a(n) deduction from the balance per company's rec
    15·1 answer
  • Why does platinum cost more than gold?
    14·1 answer
  • Kliting Co. has a lot of outstanding accounts receivable but customers are slow to pay, and it doesn't have sufficient cash to p
    6·1 answer
  • Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis o
    9·1 answer
  • Schickel Inc. regularly uses material B39U and currently has in stock 456 liters of the material for which it paid $2618 several
    6·1 answer
  • What is an advantage of using credit cards? (Select the best answer.) Credit cards are protected from loss or theft. Credit card
    10·1 answer
  • Outline the initiatives that Woolworths have chosen, use to lessen their impact on environment.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!