Answer: The value of the firm is $16 million.
For this question we use the Modigliani-Miller Proposition I which states that the value of the firm is same irrespective of the amount of equity and debt in its capital structure, ignoring taxes.
Amount borrowed for buyback = $1m
No. of shares bought back = 2500
Value per share = $
Shares outstanding before buyback = 40000 shares
Shares bought back = 2500 shares
Shares outstanding after buyback =
Next we calculate the value of the firm before and after buyback of shares.
The value of the firm before buyback comprises of only 40000 equity shares. There is no debt. Hence,

The value of the firm after buyback will be




Since value of the firm before and after buyback of shares is the same, we can say that the Modigliani-Miller Proposition I without taxes holds and the value of the firm is $16 million.
Answer:
The payback period for the new machine is 6 years.
Explanation:
depreciation = $1,500,000/10
= $150,000
payback period = ($100,000 + $150,000)/$1,500,000
= 6 years
Therefore, The payback period for the new machine is 6 years.
D. People who have been unemployed and job searching for twenty Seven weeks or more #answerwithquality #BAL
Answer:
a. the income effect.
Explanation:
The income effect is the change in demand with respect to the good or service that due to change in the purchasing power of the consumer results in change in real income
Since in the situation it is mentioned that she received a big bonus this year and she decided for a trip to europe so here the purchasing power would be changed due to the income effect
hence, the option a is correct