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lubasha [3.4K]
3 years ago
6

ACME Confetti Corporation needs to finance $20 million for a plant expansion building project. They've decided to issue common s

tocks to finance the entire project. How many shares do they need to issue to cover the cost of the project plus all floatation costs (7% of issue price). ASSUMPTION: Issue price is $50 per share. Assets can cover the value of the share price and floatation costs.
a. 379, 940
b. 465,000
c. 430, 108
d. 383, 652
Business
1 answer:
Law Incorporation [45]3 years ago
6 0

Answer:

Option (C) is correct.

Explanation:

The required proceeds:

= Amount need to be finance ÷ (1 - 7%)

= $20 million ÷ (1 - 0.07)

= $215,05,376.34 (approx)

Hence, the number of shares needed to be issued:

= required proceeds ÷ Issue price per share

= $215,05,376.34 ÷ $50 per share

= 430,108 shares (approx)

Therefore, 430,108 shares they need to issue to cover the cost of the project plus all floatation costs.

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A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are $25, and the average costs are $65. At
Katarina [22]

Answer:

price $65

Explanation:

given data

total output = 1,000 units  per week

Average Price = $70 per unit

Average Variable Cost = $25

Average Cost = $65

solution

we have given average cost is $65

so here firm consider for shutting down in long run  price is here $65

because when the firm price go below to $65

then the firm simply exit here  industry

so answer is  price = $65

5 0
4 years ago
Trumbeak Inc., an electronics company, needs to pay its debt to Breston Bank the following year. Trumbeak Inc. sells half of its
Vladimir79 [104]

Answer: . liquidity ratios

Explanation:

Liquidity ratios : These are the ratios that measure the capability of a company to meet its short term debt commitments .They show the number of times the short term debt obligations are covered by the cash and liquid assets. The following are examples of liquidity ratios

a) current ratio

b) cash ratio

c) quick ratio

d) working capital ratio .

Current ratio : This ratio juxtapose current assets to current liabilities.

Cash ratio : This ratio juxtapose just cash and investments which are readily convertible to current liabilities.

8 0
3 years ago
Read 2 more answers
Decreased interest rates will shift the aggregate demand curve to the _____ and _____ output demanded.
Virty [35]

The aggregate demand curve often shifts to the components of aggregate demand. The Decreased interest rates will shift the aggregate demand curve to the right and increased output demanded.

  • The component that is often shifted are consumption spending, investment spending.

In expansionary monetary policy the central bank often makes the supply of money and loanable funds to increase, this in turn will lowers the interest rate, promoting additional borrowing for investment and consumption, and there shifting aggregate demand right.

The rate of government spending, and often rise.

An aggregate demand curve is known to show the total spending on domestic goods and services at each price level.

Learn more from

brainly.com/question/16876969

7 0
3 years ago
Read 2 more answers
A ________ provides information to coordinate all of the business processes that deal with customers in sales, marketing, and se
Kay [80]

Answer:

A. Customer relationship management systems (CRM)

Explanation:

CRM is a technology that manages an organization's interaction with current market and future markets by organizing and coordinating sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention. It aims at providing better technical support along with better customer services in order to improve business relationships. CRM enhances an organization ability to create and improve customer relationships.

6 0
3 years ago
If an intangible asset has a legal life of eight years but contractually the usefulness is limited to six years, a company will
ANTONII [103]

Answer:

The company will amortize the cost over 6 years.

Explanation:

Intangible assets which have a useful life that is either indefinite or identifiable.

The assets having identifiable useful lives, are amortized on the basis or method of straight-line over the legal or the economic life, which ever is short.

The assets having indefinite useful lives are assessed every year for the impairment. And the impairment losses need to evaluated by deducting the market value of the asset from the carrying value.

So, in this case, the asset has legal life of 8 years and on contract is 6 years, the company will amortize the asset over the 6 years as the intangible asset have identifiable useful lives, therefore, need to amortized over legal or economic life, which ever is shorter.

Hence, legal is 8 years and economic life is 6 years, so the short is 6 years.

4 0
3 years ago
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