Answer:
The company's expected market price per share After the repurchase would $23.68
Explanation:
In order to calculate the company's expected market price per share After the repurchase we would have to calculate first the Price-to-earnings ratio ( P/E ratio ) as follows:
Price-to-earnings ratio ( P/E ratio )= Market price per share / Earnings per share
Earnings per share = Earnings/ number of shares outstanding =$ 5,700,000 / $790,000 = $ 7.21
Therefore, Price -to-earnings ratio = $ 21 / $ 7.21 = 2.91
If 90,000 shares are repurchased, Therefore Earnings per share =$ 5,700,000 / $700,000 = $ 8.14
Therefore, the company's expected market price per share After the repurchase=$ 8.14 x 2.91 = $23.68
The alkene that is responsible for strong smell of orange is limonene. The limonene is <span>common </span>D-isomer, <span>a naturally occurring chemical which is the major component in oil of orange. </span>It is used<span> as a </span>fragrance<span> in </span>perfumery and cosmetic products, but also<span> as a </span>flavoring<span> to mask the bitter taste of </span>alkaloids and foods.
Answer: D
Explanation: A capital budgeting project is usually evaluated on its own merits. That is, capital budgeting decisions are treated separately from capital structure decisions. In reality, these decisions may be highly interwoven. This interweaving is most apt to result in firms accepting some negative NPV all-equity projects because changing the capital structure adds enough positive leverage tax shield value to create a positive NPV.An optimal capital structure is the objectively best mix of debt, preferred stock, and common stock that maximizes a company’s market value while minimizing its cost of capital.
In theory, debt financing offers the lowest cost of capital due to its tax deductibility. However, too much debt increases the financial risk to shareholders and the return on equity that they require. Thus, companies have to find the optimal point at which the marginal benefit of debt equals the marginal cost. As it can be difficult to pinpoint the optimal structure, managers usually attempt to operate within a range of values. They also have to take into account the signals their financing decisions send to the market.
A company with good prospects will try to raise capital using debt rather than equity, to avoid dilution and sending any negative signals to the market. Announcements made about a company taking debt are typically seen as positive news, which is known as debt signaling. If a company raises too much capital during a given time period, the costs of debt, preferred stock, and common equity will begin to rise, and as this occurs, the marginal cost of capital will also rise.
To gauge how risky a company is, potential equity investors look at the debt/equity ratio. They also compare the amount of leverage other businesses in the same industry are using on the assumption that these companies are operating with an optimal capital structure—to see if the company is employing an unusual amount of debt within its capital structure.
Answer:
The correct answer is: decrease; increase.
Explanation:
There is a decrease in demand when the curve shifts to the left and down. It is determined by:
Decrease in consumer income
Increase in the price of complementary goods
Decrease in the price of substitute goods
Change of consumer preferences.
The decrease in demand means that even the same price, less quantity of the good is demanded or when the price decreases buying the same quantity of the good.
