1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nutka1998 [239]
2 years ago
12

Control Inc. has no debt and a total market value of $100,000. EBIT are projected to be 6,000 if economic conditions are normal.

If there is an expansion in the economy, then EBIT will be 30% higher. If there is a recession, then EBIT will be 60% lower. Control Inc. is considering a $40,000 debt issue with a 5% interest rate. The proceeds will be used to repurchase shares of stock. Currently there are 2500 shares outstanding. Ignore taxes.
1. Calculate earning per share for the case of strong expansion period before any debt is issued:

3.12

3.95

4.82

5.18

6.02
Business
1 answer:
Zinaida [17]2 years ago
5 0

Answer:

$3.12

Explanation:

For expansion:

EBT = EBIT - Interest

       = [6,000 + (30% × 6,000)] - $0

      = $7,800

Net income = EBT - Tax

                   = $7,800 - $0

                   = $7,800

Earning per share for the case of strong expansion period before any debt is issued:

= Net income ÷ Number of shares outstanding

= $7,800 ÷ 2,500

= $3.12

You might be interested in
International Imports (I2) pays an annual dividend rate of 10.20% on its preferred stock that currently returns 13.67% and has a
Goryan [66]

Answer:

The market price/value of the share of preferred stock is $74.62

Explanation:

The preferred stock pay 10.2% return on $100 per share which comes out to be 100 * 10.2% = $10.2. This dividend will remain constant no matter what the price in the market is. The price in the market is calculated by dividing the ineterest payment by the current price of the share. The formula for the current return of the preferred stock is:

0.1367 = 10.2 / P

P = 10.2 / 0.1367

P = $74.615 rounded off to $74.62

5 0
2 years ago
The measure of systematic risk is called ________.
Lorico [155]

The measure of systematic risk is called <u>beta</u>.

The answer is option c.

Beta is the same old CAPM measure of systematic hazard. It gauges the tendency of the go back of protection to transport in parallel with the return of the inventory market as an entire. One manner to consider beta is as a gauge of a protection's volatility relative to the marketplace's volatility.

Systematic risk is a part of the total risk this is caused by factors beyond the control of a specific company or individual. Systematic risk is caused by elements that are outside to the organization. All investments or securities are situations to systematic hazard and, therefore, it's far a non-diversifiable chance.

To measure a monetary firm's contribution to systemic hazard includes measuring the company's expected capital shortfall in a crisis. This right away offers the regulator with a quantifiable degree of the relative significance of a firm's contribution to ordinary systemic chance.

Learn more about organization here: brainly.com/question/24448358

#SPJ4

4 0
1 year ago
Service, repair work, and accessories may be important considerations in a consumer's decision to purchase a particular shopping
xenn [34]

Answer:

True (1)

Explanation:

In deciding whether to buy a particular product, it is important to consider  below pertinent issues :

Serviceability : questions need to  be asked whether the product can be serviced regularly to keep it in usable condition and possible cost of servicing must as well  be considered.

Repairability  : Seller must be asked if the product is repairable in case it is faulty.

Accessories : Availability of accessories in the market must be confirmed from the seller in case we need to replace any part.

Failure to sort out above  issues before buying  may result in wasting of money at the end of the day even though product might have been bought  at a cheaper lock-in price.

6 0
2 years ago
A text only forum accessed through a bulletin board service (BBS) is known as a ____.
Vinvika [58]

Answer:

its B don't listen to stupid people

Explanation:

8 0
2 years ago
Read 2 more answers
The total cost of Jurislon to be purchased in August is: Multiple Choice $1,839,600 $1,208,700 $1,014,300 $1,017,000
ivann1987 [24]

Answer:  $‭1,014,300‬

Explanation:

The company wants to maintain 20% of the next month's needs as ending inventory.

One Miniwap requires 2.5 kg of Jurision to be made.

Materials purchased is;

= Ending inventory + Materials used - Begining inventory

Ending Inventory;

= 20% of September Jurision

= 20% * 21,300 * 2.5

= 10,650 kg

Materials used

= 2.5 kg * August Miniwaps

= 2.5 * 22,600

= 56,500 kg

Materials Purchased = 10,650 + 56,500 - 10,800

= 56,350‬ kg

Cost of Jurision is $18 per kilo

= 56,350‬ * 18

= $‭1,014,300‬

3 0
3 years ago
Other questions:
  • A person who signs a check and leaves the dollar amount for someone else to fill in can recover from the bank whatever amount ex
    7·1 answer
  • The marginal-cost curve intersects the average-total-cost curve at the output level where average fixed costs are zero.
    8·1 answer
  • In comparing group and individual insurance, group insurance provides:
    15·1 answer
  • Consider the following statements regarding traditional costing systems:
    5·1 answer
  • Calculate the selling price per unit charged by the outside supplier that would make ABC Company economically indifferent betwee
    12·1 answer
  • 32. How many significant accounting policies are listed under its Summary of Significant Accounting Policies
    11·1 answer
  • Fixed vs variable cost preference. bates operates a kiosk at a local mall, selling duck calls for $30 each. the variable cost to
    6·1 answer
  • Fact Pattern 28-2 Adam, a director of Beta Computer Company, learns that a Beta engineer has developed a new, significantly fast
    13·1 answer
  • Need help with accounting. ASAP
    12·1 answer
  • harley purchased a set of pens. including the 3% sales tax, harley payed $12.40. how much was the set of pens before tax?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!