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o-na [289]
3 years ago
10

Glendale Paving currently has 120,000 shares of stock outstanding that sell for $54 per share. Assume no market imperfections or

tax effects exist. What will the new share price be if the firm declares a 40 percent stock dividend
Business
1 answer:
emmasim [6.3K]3 years ago
5 0

Answer:

The new price will be $38.57.

Explanation:

The initial price of 120,000 outstanding shares is $54.

There are no market imperfections or taxes.

The firm declares a dividend of 40%.

The new share price will be

= Initial\ price\times(\frac{1}{1+ dividend} )

= 54\times(\frac{1}{1+0.4} )

= 54\times\frac{1}{1.4}

= 54\times0.71

= $38.57

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3 years ago
Cool Fan Company sells 10,000 units to wholesalers each year at $60 per unit. The materials cost $10 per fan and unit labor cost
eimsori [14]

Answer:

e. $ 350,000

Explanation:

Given: Total number of units= 10000.

           Selling price= $60 per unit.

           The material cost= $10 per fan

           Labor cost= $15 per unit.

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Now, finding the variable cost of fan.

Variable cost= Total\ material\ cost + Labor\ cost

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3 years ago
Suppose two cities are considering tearing down their stadiums to build new ones. In one city, the old stadium cost $5 million t
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Answer:

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B. They should be more willing to tear down the $50 million stadium, because it cost more to build.

C. The cost to build the old stadium shouldn’t be considered.

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A. They should be more willing to tear down the $5 million stadium, because it cost less to build.

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City A will likely be more willing to tear down its old stadium because it costed $5 million to build. City B, on the other hand, will have to think twice because a stadium that costed $50 billion to build could have more value than it seems, or the City could simply not have enough money to build a better new stadium (something that would probably cost more than $50 billion to do).

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