Answer:
$254,010
Explanation:
Calculation for the total shareholders' equity at the end of 2021
Issue of stock (10,700 × $5.90) $63,130
Issue of stock (20,600 × $8.80) $181,280
Net income $95,000
Less Dividends( $53,000)
Less Treasury stock (3,000 × $10.80) ($32,400)
Total shareholders' equity $254,010
Therefore the total shareholders' equity at the end of 2021 is $254,010
Answer:
The opportunity to grow under a famous brand and enjoy the advantages of a larger group of business owners
Explanation:
Opening a franchise is often considered a lower risk for an entrepreneur than setting up a new business because of "The opportunity to grow under a famous brand and enjoy the advantages of a larger group of business owners."
Other benefits to derived include:
1. There is operational support from the franchisor during the lifetime of the business arrangement, which may cover finances, training, accounting, etc.
2. The franchisee's management abilities can be enhanced without extra cost
3. Transactions established on proven and famous brands.
Answer: Mortgage
Explanation: Mortgage is a legal debt instrument signed by a borrower to the lender for credit to purchase a property.
Mortgage is a secured loan which the security is the property being bought.
On the event of non payment of the loan, the property is sold and money realised is used in paying the lender the principal amount as well as accrued interest on the loan.
Answer and Explanation:
The given values are:
Debt obligation
= $36 million
Market value
= $81 million
Outstanding shares
= $10 million
(a)...
Net Assets of the firm will be:
= 
= $
Now, the current share price will be:
= 
= $
(b)...
Number of shares to be issued to repay debt obligation will be:
= 
= $
(c)...
The total number of outstanding shares will be:
= 
= $
Now,
The Current share price will be:
= 
= 
= $
