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Kisachek [45]
3 years ago
7

(i) The equity of John Blunt limited have a total market value of $86,000. Currently, Blunt limited has excess cash of $6,000 an

d a net income of $67,000. There are 1,500 shares of stock outstanding. What will be the percentage change in the stock price per share if the firm pays out all of its excess cash as a cash dividend?
Business
1 answer:
Ad libitum [116K]3 years ago
7 0

Answer:

6.98%

Explanation:

Blunt's total market value = $86,000

stocks outstanding = 1,500

market value per share = $86,000 / 1,500 = $57.33

excess cash = $6,000

excess cash per share = $6,000 / 1,500 = $4

if excess cash is distributed, the price per share will decrease by $4 or by $4 / $57.33 = 6.98%

if instead of distributing excess cash among stockholders, the company repurchased treasury stock, then the stock price would probably increase, instead of decreasing.

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Two individuals start the same training program at the same time, but one is able to grow muscle faster and larger than the othe
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Answer:A.One individual was born with more muscle fibers.

Explanation:

Muscle fibers are fibers that helps us break down the protein in our body and protein are the actual muscle makers .

If someone is born with muscle fibers his body breaks up these protein faster that the normal individual which makes their muscles build up faster than a normal person .

6 0
3 years ago
Read 2 more answers
Which is an example of outsourcing?
Ray Of Light [21]

Answer:

D

Explanation:

Outsourcing refers to a practice where a firm seeks out an external party to provide services that would have otherwise been provided by staff of the firm. Here a customer assistance center in India is contracted. One of the advantages of outsourcing is that it results in cost savings.

However, confidentiality of company information could be compromised via outsourcing, and competitors could have access to trade secrets of such firms.

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4 years ago
Which of the following is a way to compute GDP?
jek_recluse [69]

Answer:

C. add up the market values of all final goods and services is the correct answer.

Explanation:

  • By add up the market values of all final goods and services is a way to compute GDP.
  • GDP stands for Gross domestic product and describes the total financial cost of all goods and services produced and traded on the market within a country during a specified time
  • GDP is used to estimate economic activity in a country.  
  • Economists use the Gross domestic product to decide whether the economy is expanding or undergoing a recession.
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3 0
4 years ago
Kent is a salesman at a large water products distributor where all the decisions are made by the top levels of management. Howev
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Answer:

Centralized Organization

Explanation:

Centralized organization can be defined as a hierarchy decision-making structure where all decisions and processes are handled strictly at the top or the executive level.

7 0
3 years ago
Suppose that a firm's recent earnings per share and dividends per share are $3.00 and $1.50, respectively. Both are expected to
Alborosie

Answer:

$46.90

Explanation:

The dividend in each year is the previous year's dividend multiplied by the growth factor, whereas the growth factor is 1 plus the expected growth rate of 10%, the EPS in each year would also be determined in a similar manner.

Note that the stock price is the present value of its dividends for 5 years as well as the price value of its year 5 share price(year 5 EPS*year 5 P/E ratio of 16)

Download xlsx
6 0
3 years ago
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