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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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True

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MacHeath Inc. bought 60% of the outstanding common stock of Nomes Inc. in an acquisition that resulted in the recognition of goo
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c) $600,000.

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3 years ago
If one believes interests rates will move lower in the months ahead, he or she should invest in long-term, fixed-rate savings in
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There are  interests rates in goods sold. If one believes interests rates will move lower in the months ahead, he or she should invest in long-term, fixed-rate savings investments is a false statement.

<h3>Does a higher rate of money supply lower interest rates?</h3>

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Investment one should choose today if you believe interest rates will go up is Short-term savings instruments. This is because by investing money in short-term savings instruments, one's money can be available to invest in any kind of  higher interest instrument in the future.

Learn more about  interests rates from

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7 0
2 years ago
Community hospital just hired a contrast coder who charges $5.00 per record coded. Last week she coded 300 records. The HIM mana
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Answer:

The contrast coder's weekly salary last week was $450.00.

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The CC charged $5.00 per record coded. The previous week she coded 300 records.

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Though remember the hospital has a 30% benefit.

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