Answer:
What is the expected dividend yield for Portman's stock today?
d. 6.40%
Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis?
a. $0.52 per share
Thus, Judy's investment will be diluted, and Judy will experience a total loss of $0.52 x 7,500 = $3,900
Explanation:
cost of equity = Re = risk free rate of return + (Beta × market premium) = 5% + (0.90 x 6%) = 10.4%
dividend in one year = $1.68 x 120% = $2.016
intrinsic stock price = $2.016 / (10.4% - 4%) = $31.50
expected dividend yield = dividend / stock price = $2.016 / $31.50 = 6.4%
Judy's loss per share = ($31.50 - $26.78) x (62,500 / 562,500) = $0.5244
Answer:
0 660000 loss
Explanation:
Data given in the question
Realized gain = $2,920,000
Operating losses, net of taxes = $3,580,000
By considering the above information, since there is no income arise from continuing operations so it should be zero
And, the discontinued operations, the operating losses is
= Operating losses - realized gain
= $3,580,000 - $2,920,000
= $660,000
Answer:
See below
Explanation:
Given the above information, the average collection period in days is computed as
= Average balance of account receivables / Net credit sales × 365
Average balance of account receivables = ($79,200 + $43,200) / 2
= $61,200
Net credit sales = $828,000
= $61,200 / $828,000 × 365
= 26.97 days
= 27 days
Hence the average collection period in days is 27 days
Answer:
This is an example for the regulation of the government having a negative impact on trade.
The celling policy if people trade below that value is uneffective and useless but, if the agent of the market trade above the celling in some transactiosn (this book may be a best.seller or a book which is hard to find in the given moment) the regulation prohibits and no trade is done. No trade implies neither consumper or producer surplus. While the government state the celling acts in well-being and good for the consumer in this case it is proved wrongly. The consumer would pay between 59 and 64 having a surplus and the produced above 59 will also enjoy a surplus from trade.
Explanation: