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Agata [3.3K]
3 years ago
8

Honeycutt Co. is comparing two different capital structures. Plan I would result in 12,700 shares of stock and $109,250 in debt.

Plan II would result in 9,800 shares of stock and $247,000 in debt. The interest rate on the debt is 10 percent. The all-equity plan would result in 15,000 shares of stock outstanding. Ignore taxes for this problem. a. What is the price per share of equity under Plan I
Business
1 answer:
irina [24]3 years ago
5 0

Answer: $47.50

Explanation:

The Price per share under Plan I can be calculated by the formula;

Price per share = Value of debt / (Number of shares under all-equity plan - Number of shares under Plan)

= 109,250 / ( 15,000 - 12,700)

= 109,250 / 2,300

= $47.50

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3 years ago
A college of business building that has classrooms on the first floor, faculty offices on the second floor, and graduate assista
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Answer:

<em><u>Functional </u></em>

Explanation:

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Answer:all of the above are Correct (D)

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3 years ago
Samsung has products for each and every customer segment. This pertains to ________ targeting strategy. *
aleksklad [387]
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3 years ago
Oriole Inc. reported total assets of $2407000 and net income of $324000 for the current year. Oriole determined that inventory w
swat32

Answer:

Total Asset $2,381,500

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Explanation:

Overstated Inventory Leads to the overstatement of Total Assets value and Net Income. Ending Inventory Value is added in the total asset balance, overstatement in ending inventory causes overstatement in total assets.

The Ending Inventory is also used in the calculation of Cost of Goods sold. Overstated Inventory will cause understatement in Cost of Goods sold and overstatement in Net Income.

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Net Income = $324,000 - $25,500 = $298,500

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