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erik [133]
3 years ago
11

Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital, when they purchased new issues of stock

and allowed management to retain some of the firm's earnings. The firm now has 1,000,000 shares of common stock outstanding, and it sells at a price of $33.00 per share. How much value has O'Brien's management added to stockholder wealth over the years, i.e., what is O'Brien's MVA?
Business
1 answer:
shepuryov [24]3 years ago
3 0

Answer:

$13,000,000

Explanation:

Given that,

Total Book Value of Equity = $20,000,000

Common stock outstanding = 1,000,000 shares

Selling price per share = $33.00

Market value of equity:

= Selling price per share × Shares outstanding

= $33.00 × 1,000,000

= $33,000,000

O'Brien's MVA:

= Market value of equity - Total Book Value of Equity

= $33,000,000 - $20,000,000

= $13,000,000

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<h3>Deposit:</h3>

Using this formula

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Let plug in the formula

Deposited amount=$25,000-$13,000

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Inconclusion for her to complete her letter, she must deposit D) $12,000.

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5 0
3 years ago
Assume that at the end of the next year, Company A will pay a $2.00 dividend per share, an increase from the current dividend of
Bezzdna [24]

Answer:

The  value of the stock is $28.57

Explanation:

Data provided in the question:

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1 year ago
Hey there,
gtnhenbr [62]
I am the age 17 and I am A)Single
3 0
3 years ago
Read 2 more answers
The preemptive right
nika2105 [10]

Answer:

The correct answer to the following question will be Option A.

Explanation:

  • A shareholder's right and opportunity in such a company to get the first possibility to buy a current concept of this kind of business's stock concerning the number of inventory the shareholder previously holds termed as a Preemptive right.
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Other choices have no relation to the given situation. So choice A is the correct answer to that.

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