Answer:
a) Market Value = $100 million × $20 = $2,000 million = $2 billion
Market value of equity would remain same = $2 billion
b) Market value would remain same after recap. Only market capitalization would reduce to half.
Market value of equity = 1 billion
c) Buying back shares increases the stock price which demonstrates the faith of the company in its work. But creditors have capital gains.
d) After recap and cash flow firm total value has increased to $2 billion + $100 Million = $2.1 billion and market value of equity has increased from $20 to $22 . ($1000 + $100)/50 = $22.
e) Equity shareholders have gained due to increase in there share value
Explanation:
The correct answer should be <span>Yes, because though most Governance employees have a bachelor’s degree, it is not required.
A formal education degree is not necessary for getting a position in a governing office. His military career can be helpful since many military generals have been involved in politics because of their high rank, and he wouldn't be the first or the last military general that became a leader of a country due to their experience. He obviously has experience in the field and in working with people and if he is high ranked that also means that he can manage organizations well, so he can become an officer in a governing position if he desires to.</span><span />
Answer:
$8.50
Explanation:
Computation for the net incremental cost or savings of buying the component.
Using this formula
Incremental cost = Purchase price -Cost savings
Let plug in the formula
$37 - ($10.50+ $14.50 + 3.50)
Incremental cost=$37-$28.5
Incremental cost= $8.50
Therefore the net incremental cost or savings of buying the component is $8.50
Answer:
separates costs into fixed and variable component
can assist with management decision making
Explanation:
The contribution margin may be defined as when we deduct the expenses of the variable from sales. Where contribution margin shows the organization revenue is contributing to net income and fixed cost.
The statement of contribution margin income tells of the earnings at various stages of operations.
This report of income is not used for external reporting purposes but rather for internal decision making by the management.
Therefore according to the above description, the last two statements are correct.
A device or technique that ensures production of a good unit overtime is a poka-yoke.
The Japanese term Poka-Yoke means mistake proofing. Poka means mistakes and yoke(ru) means to avoid. This technique helps eliminate defects by way of human errors since they often occur. You will find this technique used in a lean manufacturing process.
