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borishaifa [10]
3 years ago
11

Baruk Industries has no cash and a debt obligation of $36 million that is now due. The market value of​ Baruk's assets is $ 81$8

1 ​million, and the firm has no other liabilities. Assume perfect capital markets. a. Suppose Baruk has 1010 million shares outstanding. What is​ Baruk's current share​ price? b. How many new shares must Baruk issue to raise the capital needed to pay its debt​ obligation? c. After repaying the​ debt, what will​ Baruk's share price​ be?
Business
1 answer:
Gre4nikov [31]3 years ago
8 0

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:

= 81 - 36

= $45 \ million

Now, the current share price will be:

= \frac{45}{10} = $4.5 \ per \ share

(b)...

Number of shares to be issued to repay debt obligation will be:

= \frac{36}{4.5} = $8 \ million \ shares

(c)...

The total number of outstanding shares will be:

= 10+8

= $18 \ million

Now,

The Current share price will be:

= \frac{Net \ assets \ of \ the \ firm}{Total \ no \ of \ outstanding \ shares}

= \frac{81}{18}

= $4.5 \ per \ share

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andrew11 [14]

Answer:

Explanation:

1. What is the partial effect of expendA on voteA?

ΔvoteAΔexpendA=β2+β4expendB→0.0382809+−6.63e−6expendB

2. Is the expected sign for b4 obvious?

Yes because the expendB alone is a negative and expendA is a positive leaving B4 to be a negative number .

4 0
3 years ago
Dye Trucking raised $85 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $8.50. If Dye
ivanzaharov [21]

Answer:

60,000,000

Explanation:

Dye trucking raised $85 million to buy stock

After the recap Dye's stock price is $8.50

Dye share had 70 million share before the recap

Therefore the number of shares present after the recap can be calculated as follows

= 70,000,000-(85,000,000/8.50)

= 70,000,000-10,000,000

= 60,000,000

Hence the number of shares after the recap is 60,000,000

8 0
3 years ago
Larry is a hard-working college freshman. One Saturday, he decides to work nonstop until he has answered 200 practice problems f
OverLord2011 [107]

Answer:

  • The marginal gain from Larry's second hour of work is 60 problems
  • The marginal gain from Larry's fourth hour of work is 20 problems
  • The best combination is 1 hour of working problems + 3 hours of reading

Explanation:

To get the <em><u>marginal gain</u></em> we subtract from the latest hour, in this case the second hour (140), the production from the previous hour (80). 140-80=60. <em>It's always the same, the latest minus the previous one.</em>

So let's do the same for the fourth hour:

Noon................200 problems

minus

11:00 AM..........180 problems

200-180= 20 problems

Now to know how many hours he should spend working on problems and reading, let's compare:

An hour of reading equals to 70 problems made; (because working on 70 problems raises a student’s exam score by about the same amount as reading the textbook for 1 hour).

hours of working problems         problems solved

0............................................................0

1.............................................................80

2............................................................140

3............................................................180

hours reading                    problems equivalent to hours read

4...............................................(4*70)=280

3...............................................(3*70)=210

2...............................................(2*70)=140

1................................................(1*70)=70

finally let's add up the two combinations (0 and 4, 1 and 3, 2 and 2, 3 and 1)

0 and 4_______________0+280= 280

1 and 3________________80+210=290

2 and 2_______________140+140=280

3 and 1________________180+70=250

<em>And the best combination is 1 hour of working problems + 3 hours of reading=</em><em>290</em>

3 0
3 years ago
Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions.Category
Ymorist [56]

Answer:

a. $343.7 billion

b.  $331.9 billion

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Explanation:

The computation is shown below:

a. For GDP

GDP = Personal consumption expenditures + Government purchases + Net private domestic investment + Consumption of fixed capital + net exports

where,

Net exports = U.S. exports of goods and services - U.S. imports of goods and services

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= $1.3 billion

So, the GDP would be

= $219.1 + $59.4 + $52.1 + $11.8 + $1.3

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b. For NDP

NDP = GDP - Consumption of fixed capital or depreciation

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c. For NI

NI = GDP + Net foreign income

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All values are in billions

         

5 0
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A term that is not synonymous with property, plant, and equipment is
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Answer:

4. intangible assets.

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Total assets are classified into current assets, fixed assets, and intangible assets.

Current assets comprise cash, stock, receivable account, etc.  

Fixed assets include plant & machinery, property, facilities, furniture & equipment, etc.

And, the intangible assets are patents, copyrights, goodwill, and other intellectual properties plus they are not seen or even touched.

Whereas the fixed assets or other related synonymous are tangible in nature

6 0
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