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sineoko [7]
3 years ago
8

If Newble paid dividends of $100 million in 2016 and made no stock issues, what must have been net income during the year?

Business
1 answer:
Arisa [49]3 years ago
8 0

Answer:  $310 million

Explanation:

The net income is used to pay dividends as well as being added to equity at the end of the period. If no new stock was issued then the net income would be the increase in equity plus dividends.

Increase in Equity = Equity 2016 - Equity 2015

Equity 2016 = Total assets 2016 - total liabilities 2016

=  ( 420 + 1,420) - ( 240 + 920)

= $680 million

Equity 2015 = Total assets 2015 - total liabilities 2015

=  ( 310 + 1,200) - ( 210 + 830)

= $470 million

Increase in Equity = 680 - 470

= $210 million

Net Income = Increase in equity + dividends

= 210 + 100

= $310 million

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Consider the following game in which two firms decide how much of a homogeneous good to produce. The annual profit payoffs for e
inessss [21]

Answer:

Consider the following explanation

Explanation:

Context

Game theory involves two players. They have more than one option to decide. Pay off from each options adopted by two players are available. They have to select a strategy which will maximize their own return. But for optimizing their decision, they have to consider the action of his rival.

In this problem, two players are firm A and firm B. They have two strategies low output and high output. The strategies of firm a are measured in rows and for firm B in columns. They have to select a strategy which will maximize their payy off. Each cell has two pay offs. First one is for Firm A and second one is for firm B.

1. Dominant strategy is a strategy which will always give higher payoffs in comparison with pay off of other strategies. Consider first strategy of firm 1. If it adopts strategy of low output, then firm 2 can also adopt either strategy of low output or high output. In that case pay off of firm 1 will be 300 or 200.

Alteratively if firm 1 adopts high output then pay offs are 200 or 75. 200 is earned if firm B also go for low productivity. It is 75 if firm B adopts high productivity.

Now compare two payoffs side by side. Note that firm A has higher pay off in low output [300,200] in comparison with the pay off of high output [200,75]. So whatever strategy firm B adopts, Firm A will always go for low production. So low production strategy of firm A dominates high production strategy.

Same result is not observed for firm B. Pay off from low production strategy of firm B is [ 250,75]. Pay off from high production strategy are [100,100]. Now compare the two. If Firm A go for low production, then firm B will select low production. It will give pay off 250. Similarly when firm A decides for high production, then firm will also decide for high production. It will maximize its pay off. Amount is 100. Thus no strategy dominates for firm B.

5 0
3 years ago
Limited partners in a company
seropon [69]
C serve only as investors, as general partners take on all the risk and operation of the company, while limited partners invest their money, but don’t take part in the decisions of the company.

Hope this helps!
5 0
3 years ago
Distinguish between regional level and national level employment giving adequate example​
nikdorinn [45]
I don’t get it umm maybe try explaining it more
3 0
3 years ago
Harrods PLC has a market value of £139 million and 5 million shares outstanding. Selfridge Department Store has a market value o
Eva8 [605]

Answer:

(a) The stock price of Harrods be after the acquisition is £ 31.45

(b) The exchange ratio between the two stocks would be 0.8550

Explanation:

Harrods PLC has a market value of £139 million and 5 million shares outstanding.

Selfridge Department Store has a market value of £41 million and 2 million shares outstanding.

a)  If Harrods offers 1.2 million shares of its stock in exchange for the 2 million shares of Selfridge

Shares outstanding = 5 + 1.2 = 6.2 million

Stock price = £ 195 million ÷ 6.2 million = £ 31.45

b)  alpha × 195 = 51

alpha = £51  million ÷ £195 million

= 26.15%

(195 ÷ ( 5 +X ) ) × X = 51

51 (5+X) = 195X

255 + 51X = 195X

144X = 255

X = 1.77 million shares

Exchange ratio would be: 1.77 ÷ 2

= 0.8550

4 0
3 years ago
An investment in the Mezzogiorno will receive a subsidized loan of $12 million from the Italian government. The loan bears an in
Murrr4er [49]

Answer:

$1.92 million

Explanation:

The value of the subsidy per year = $12,000,000 x 3% = $360,000

Now we have to find the present value of the cash flows using an excel spreadsheet and the net present value function =NPV(discount rate,series of cash flows)

discount rate = 10% (market rate)

cash flows = 8 cash flows of 360,000 each

=NPV(10%,360000,360000,360000,360000,360000,360000,360000,360000) = $1,920,573 ≈ $1.92 million

6 0
3 years ago
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