Answer:
The answer is A. After months of consistently raising, the unemployment rate stayed the same for two months in a row.
Explanation:
Answer: $1381400
Explanation:
From the question, we are informed that Company A is considering a merger with Company B and that A has 43,000 shares outstanding at a market price of $32 a share while B has 12,800 shares outstanding priced at $44 a share and the merger is expected to create $5,400 of synergy.
The total value of the merged firm will be:
= (43,000 × $32) + (12,800 × $44) + $5,400 - $563,200
= $1,376,000 + $563,200 + $5,400 - $563,200
= $1,944,600 - $563,200
= $1,381,400
Answer:
(a) increase its dividend;
dividends are increased for two reasons:
- the company has excess cash and it doesn't have any possible investments on hand
- the board and upper management want to increase the stock price and higher dividends always result in higher stock prices, even if it is only in the short run.
(b) buy back some of its common stock shares;
- the company has excess cash and the board and upper management believe that the stock price is too low.
(c) pay down some of its debt;
- the company has excess cash and it considers that the cost of its debt is too high and it can get cheaper financing from other sources if needed.
(d) increase its use of internal financing;
- the board and upper management considers that the company needs to invest in new or existing projects and they consider that the financing costs are too high. Also, on the long run if things work well, the stock price should increase.
(e) take the public firm private
- the company has excess cash and the board and upper management believe that the stock price is too low. It is similar to (b) only on an extreme situation.
Answer:
25.89%
Explanation:
With regards to the above information, initial earning = $0.50
Final earnings = $5.0
Number of periods = 10 years
We can formulate the above into an equation, which will now be:
$5.00 = $0.5 ( 1 + rate )^ 10
We can simplify furthermore.
1 + rate ^ 10 = 5 / 0.5
1 + rate ^ 10 = 10
1 + rate ^ 10 = 10^1/10
1 + rate = 10 ^ 0.1
1 t rate = 1.2589
rate = 1.2589 - 1
rate = 0.2589
rate = 25.89%
Therefore, the growth rate in earnings per share (EPS) over the 10 year period is 25.89% .
