Answer:
Please find the detailed answer as follows:
Explanation:
Question a). Solution: Initial cost = 2.40 Million * 17.60 = $ 42.24 Million.
Conclusion: Initial cost for the company to go private = $ 42.24 Million.
<h3>Question b). Solution attached in the microsoft excel document</h3>
Question c). Solution:-
Profit of Mitchell labs from the restructuring = 79.30 Million - 42.24 Million
= $ 37.06 Million.
Percentage return = (37.06 Million / 42.24 Million) * 100
= 0.8774 * 100
= 87.74 % (approx)
Conclusion:- Percentage return = 87.74 % (approx).
Answer:
The correct answer is option a.
Explanation:
The equilibrium interest rate is determined by the interaction of aggregate demand for loanable funds and aggregate supply of loanable funds. In other words, at the level of equilibrium interest rate, the aggregate demand for loanable funds is equal to aggregate supply of loanable funds. Any change in these two variable causes the equilibrium interest rate to change.
Answer:
First line manager
Explanation:
First line managers are responsible for operation of their departments by assigning tasks, managing work flow, monitoring the quality of work, dealing with employee problems, and keeping the middle managers and executive managers informed of problems.
In this case, Mike is doing exactly that by supervising the work and dealing with quality control, handling employee issues.
Answer:
8.76%
Explanation:
Using the CAPM formula:
Ke = Rf + Beta Factor * Risk premium
Here
Rf is 5%,
Beta Factor is 1.6
And
Risk Premium is 6%
By putting values, we have:
Ke = 5% + 1.6 * 6%
Ke = 14.6%
Now we will find new firm's cost of equity under 40% debt by simply multiplying it with the equity percentage:
Weighted Cost of Equity = 14.6% * 60% = 8.76%
Answer:
C. Common stock: may come with an additional dividend provision attached to company financial goals
Explanation:
Dividends may have certain provisions that will have to be met for them to be disbursed to the Common Stock Holders that may be in accordance with Company financial goals. For example dividends may only be distributed when a certain level of profit is reached or when shares trades at a certain price.
Therefore,
The pairing that is correctly matched is Common stock: may come with an additional dividend provision attached to company financial goals