A company had 158 million shares outstanding at the beginning of the year 2012. On February 2, 2012, the company issued an addit
1 answer:
The resulting price per share after new issuance will be $50
Solution:
Values:
Company shares = 158 million shares
Additional shares = 30 million shares
Market price = $50 per share
Evaluating:
Total value of equity prior to issue = Company shares * Market price
= 158 million * 50
= $7.9 billion
Value of share issue = Additional shares * Market price
= 30 million * 50
= $1.5 billion
Total value of equity after share issue = Total value of equity prior to issue + Value of share issue
= 7.9 billion + 1.5 billion
= $9.4 billion
Shares outstanding after share issue = Company shares + Additional shares
= 158 million + 30 million
= 188 million
Price per share after issue =
=
= $50
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Answer:
Option c) how a consumer might trade off different levels of consumption of each of two goods, while staying at the same utility level.
Explanation:
This is the very definition of an indifference curve. The points in an indifference curve are the combinations of the quantities (level of consumption) of two different goods which will produce the very same utility to the consumer. The consumer will perceive any of those combinations as having the same utility for him.
For example, a usual graph of various indifference curves will look like the graph attached.
In this graph the combination of 2 pairs of shoes and 15 pants will be perceived as having the same utility as the combination of 5 pairs of shoes and 4 pants. Both are combinations in the same indifference curve, the green one, and the utility of any combination lying in that green curve will be rated the same: u = 1.
