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grandymaker [24]
2 years ago
10

Sally is planning to sell her company and she prefers to obtain immediate liquidity, and the value of consideration to be fixed.

She should choose:A. A cash saleB. An IPOC. A stock-for-stock combinationD. None of these are correct
Business
1 answer:
ella [17]2 years ago
6 0

Answer: A cash sale

                                           

Explanation: In simple words, liquidity refers to the ability of an organisation to bear its short term expenses. For that a company must have cash or some assets that can be readily converted into cash in case of need.

Hence Sally should sell her company in cash sale as it will result in inflow of cash which will create liquidity and also the consideration will be certain with short timely payments.

Other option such as IPO or  stock for stock might result in increase in value but certainly won't give her liquidity.  

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John Q. Investor manages an equity portfolio with a market value of $3,000,000. The portfolio beta is 1.6. John Q. finds this so
Lubov Fominskaja [6]

Answer:

Portfolio Beta  = 1.2815

Explanation:

given data

market value = $3,000,000

portfolio beta = 1.6

sells = 25

times index = $10

currently trading = 15379

to find out

anticipates that this hedge will reduce the portfolio beta to

solution

we get number of contract to sell is here

number of contract to sell = Portfolio Beta × \frac{Portfolio\ value}{index\ value\ * multiplier}      ......................1

put here value we get

25 = Portfolio Beta × \frac{3,000,000}{15379 * 10}

solve it we get

Portfolio Beta  = 1.2815

7 0
3 years ago
This year Maria works 1,200 hours as a computer consultant, 320 hours in a real estate development business, and 400 hours in re
Gnesinka [82]

Answer:

$ 25000 can be deducted under the exception for real estate

Explanation:

of the $26,000 real estate passive activity loss generated, $ 25000 can be deducted under the exception for real estate. The limit is of special allowance of  $25000.

7 0
2 years ago
Which of the following are true?
natima [27]

Answer:

III and IV

Explanation:

You don't have to be interested in something to be good at it. A job you like and accommodates your interests is not a guaranty.

8 0
2 years ago
Henry Garrison starts the month with a balance on his credit card of $1,130. The average daily balance for the month, including
hoa [83]

Answer:

Interest expense $ 11.15

Explanation:

As the bank uses the average daily balance excluding new purchases we should use that amount to solve for the interest expense.

The rate is one and a half percent therefore, 1.5% --> 0.015

principal x rate = interest

$743 x 0.015 = $ 11.145

3 0
3 years ago
A firm has adopted a policy whereby it will not seek any additional external financing. Given this, what is the maximum growth r
dlinn [17]

Answer:

9%

Explanation:

Given:

The net income = $12,000

Total equity = $40,000

Total assets = $80,000

Dividend payout ratio = 40%

Now,

Internal rate of return, r = \frac{\textup{Net Income}}{\textup{Total Equity}}\times100\%

or

Internal rate of return, r = \frac{\textup{12,000}}{\textup{80,000}}\times100\%

or  

Internal rate of return, r = 15%

and,

Retention ratio = 1 - Dividend payout ratio

= 1 - 0.40

= 0.60 or 60%

Now,

Growth rate = Retention ratio × Internal rate of return

or

Growth rate = 0.60 × 0.15

or

Growth rate = 0.09

or

Growth rate = 9%

7 0
2 years ago
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