All of the following are factors that may complicate capital investment analysis except a.qualitative factors. b.changes in pric
2 answers:
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Answer:
d. 2750 units
Explanation:
The break-even point occurs when the make option cost equals the buy option cost. The number of units 'x' needed in order for both options to yield the same costs is given by:
The break-even point is 2,750 units
Answer:
The answer is "4,750"
Explanation:
They have indeed been given the information that we require.
The current market cap for Simon Company (SIMON) is $300,000.
rate= 6%
EBIT=$150,000
The business has no plans to expand.
The current cost of capital is 8.8%,
The tax rate is 40%.
The company has 10,000 shares of common stock mostly on market.
The stock is being offered at a $90.00 per share price.
Assume SIMON is considering switching in its current financial performance to one that results in a share price of $96 per share.
The resultant capital structure would have a combined valuation of $504,000 in capital and $756,000 in equity.
Remaining Shares= equity market value / per share price
The initial number of shares minus the resultant number of shares equals the number of repurchased shares:
AJC will buy back a certain number of shares.