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castortr0y [4]
3 years ago
5

FetchFun Inc. is currently an all-equity firm with 20 million shares outstanding and a stock price of $7.50 per share. FetchFun

Inc. plans to announce that it will borrow $50 million and use the proceeds to repurchase shares. FetchFun Inc. will pay interest only on this debt, and it has no further plans to increase or decrease the amount of debt. The corporate tax rate is 40%.
Required:
a. What is the market value of FetchFun Inc. existing assets before the announcement?
b. What is the market value of FetchFun Inc assets (including any tax shields) just after the debt is issued, but before the shares are repurchased?
Business
1 answer:
baherus [9]3 years ago
4 0

Answer:Im figuring this out for you!

Explanation:

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Answer: as a borrower or as a demander of funds

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From the question, we are informed that Alyssa is opening a bicycle shop, and her monthly expenditures to get the shop up and running exceed her monthly income.

Since Alyssa's expenditure is more than the income generated every month, it shows that she's a demanded of funds as she borrows more than what she earns.

6 0
3 years ago
10. If during 2009, the country of Sildavia recorded a GDP of $65 billion, interest payments of $15 billion, imports of $13 bill
uysha [10]

Answer:

$36 Billion

Explanation:

Given:

GDP = $65 billion

Interest payments = $15 billion

Imports = $13 billion

Profits = $7 billion

Exports = $15 billion

Rent = $7 billion

Wages = ?

Computation of Wages:

GDP from Income Method:

GDP = Interest payments + Wages + Rent + Profits

$65 billion = $15 billion + Wages + $7 billion + $7 billion

$65 billion = Wages + $29 billion

$65 billion - $29 billion = Wages

Wages = $36 Billion

3 0
3 years ago
Excerpts from Stealth Company's December 31, 2021 and 2020, financial statements are presented below: 2021 2020 Accounts receiva
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Answer:

5.20 times

Explanation:

Account receivable $29,500 + $45,000

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$74,500 / 2 =

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$194,000 / $37,250

= 5.20 times

Therefore Stealth Company's 2021 receivables turnover ratio is: 5.20 times

5 0
3 years ago
Balanced Scorecard for a service companyAmerican Express Company is a major financial services company, noted for its American E
jeka94

Answer:

Balanced Scorecard is a good measure for company's performance.

A list of measures is given against which American Express Company's performance can be measured which will benefit the company in improving their services and discarding if any service is not being benefited by their customers.

Each Key performance indicator needs to have a good measure of performance, so that the performance can be calculated easily.

Explanation:

Balanced Scorecard is a good measure for company's performance.

A list of measures is given against which American Express Company's performance can be measured which will benefit the company in improving their services and discarding if any service is not being benefited by their customers.

Each Key performance indicator needs to have a good measure of performance, so that the performance can be calculated easily.

6 0
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What is an example of a service that can be purchased
ladessa [460]

Landscaping is a good example.

5 0
3 years ago
Read 2 more answers
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