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ddd [48]
3 years ago
6

5. Harris Corporation has $250 million in cash and 100 million shares outstanding, Suppose the corporate tax is 35%, and investo

rs pay no taxes on dividends, capital gains, or interest income. Investors had expected Harris to pay out the $250 million through a share repurchase. Suppose instead that Harris announces it will permanently retain the cash, and use the interest on the cash to pay a regular dividend. If there are no other benefits of retaining the cash, how will Harris’s stock price change upon this announcement?
Business
1 answer:
Ronch [10]3 years ago
3 0

Answer:

$0.875

Explanation:

The computation of the stock price that changes upon the announcement is shown below:

As it given that

The corporate tax is 35%

So there is an effective disadvantage i.e. retention

Also, the stock price would be decline by 35% of cash

i.e.

= 35% × $250 million ÷ 100 million outstanding

= $0.875

Hence, the stock price is $0.875

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Orson takes harrison's car without harrison's permission and without just cause. orson has probably committed the tort of conver
Verdich [7]

Orson has probably committed the tort of conversion unless he can show that <u>"Harrison does not really own the car."</u>


Conversion is an intentional tort comprising of taking with the goal of practicing over the property a proprietorship conflicting with the genuine proprietor's privilege of possession". In the United Kingdom, it is a tort of strict liability. Its counterparts in criminal law incorporate robbery or burglary and criminal change. In those wards that remember it, criminal transformation is a lesser wrongdoing than burglary/theft.

3 0
4 years ago
Cost-volume-profit [CVP] analysis is a widely-used, basic business model. Discuss the underlying assumptions made in the applica
faltersainse [42]

Answer:

Cost-volume-profit [CVP] Analysis

The cost-volume-profit analysis model assumes that the total fixed cost, the variable cost per unit, and the selling price per unit remain constant within the relevant range.

It is very difficult for a company to remain in the relevant range, where the assumptions will be obtained.  Market forces, including the dynamics of competition change the underlying assumptions.  For example, a company may become more efficient in its operations, thereby reducing its variable cost per unit.  The total fixed cost may also change when the company increases its activity levels.

However, these limitations do not make the model less useful.  It can be relied on to make short-run profit and pricing decisions.

Explanation:

The management of a business finds the CVP model useful in making important management decisions, especially decisions that relate to budgeting of production and sales, cost control, and profit planning.  Management uses the CVP model to determine the break-even point in both units and sales dollars.  Overall, management relies on the model to select its competitive products.

7 0
3 years ago
The buying decision is likely to be most complex and take longest to complete in a(n) ________ B2B buying situation.
konstantin123 [22]

The buying decision is likely to be most complex and take longest to complete in a new buy B2B buying situation.

<h3>What Is the New Buy Situation ?</h3>

In a NEW BUY situation, the buying center is likely to proceed through all six steps in the buying process and involve many people in the buying decision.

A new buy situation occurs when the customer buys goods or service for the first time. Because of this, the buying decision is quite involved to the extent of going through the six steps of the buying process.

The three types of buying situations are;

  • new buys.
  • modified rebuys.
  • straight buys.

For example, in the new buy situation, a single organization is the first to buy a particular product or service, Hence, we would expect the provision of more product and service descriptions than in a straight rebuy situation where the organization is already familiar with the products and just simply reorders an existing product or service from preferred suppliers.

Therefore, we can conclude that the correct option is C.

Your question is incomplete, but most probably your full question was:

a. modified rebuy

b. straight rebuy

c. new buy

d. adapted buy

e. generic buy

Learn more about B2B Buying on:

brainly.com/question/14774623

#SPJ4

7 0
2 years ago
Bill Dukes has $100,000 invested in a 2-stock portfolio. $50,000 is invested in Stock X and the remainder is invested in Stock Y
ohaa [14]

Answer:

the portfolio´s beta is 1.65

Explanation:

when the individual calculation of beta has been given, is possible to aggregate them as a weigthed average, so it is possible to apply te next formula

Beta Portfolio=w_{1} *\beta _{1}+ w_{2} *\beta _{2} + .... + w_{n} *\beta _{n}

where w is the weigthed value for each asset, in this particular case we have:

Beta Portfolio = \frac{50.000}{100.000}*1.50 +\frac{50.000}{100.000}*1.70

so with this result we get 1.65

8 0
3 years ago
Which is a risk in IS development?
Inessa [10]

Answer: system unavailability

Explanation:

4 0
3 years ago
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