1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
const2013 [10]
3 years ago
5

Lasko's has 250,000 shares of stock outstanding, $400,000 in perpetual annual earnings, and a discount rate of 16 percent. The f

irm is considering a new project that has initial costs of $350,000 and annual perpetual cash flows of $60,000. How many new shares must be issued to fund the new project
Business
1 answer:
kicyunya [14]3 years ago
8 0

Answer:

Extra shares required is 1,314,975

Explanation:

Outstanding shares of a firm are those shares that have already been issued to the general public and finds have been received by the company in exchange.

Current price per share = (Total value of shares ÷ Number of shares) ÷ Discount rate

Current price per share= (400,000 ÷ 250,000) ÷ 0.16

Current price per share= $10

Value of firm with project= Initial cost + {(Value of outstanding stock + Annual Perpetual cash flow) ÷ Discount rate}

Value of firm with project= -350,000+ {(400,000+ 60,000)÷0.16}

Value of firm with project= $2,525,000

New price per share= 2,525,000 ÷ 250,000= $10.10

Extra amount needed for project= 2,525,000 - 400,000= 2,152,000

Extra shares required= (2,152,000 ÷ $10.10)÷ 0.16

Extra shares required= 1,314,975

You might be interested in
When business processes are not on target, we can choose different approaches to fix the problem. If the company is not concerne
lana [24]

Answer:

Business Process Reengineering (BPR).

Explanation:

In Business Process Reengineering (BPR), when business processes are not on target, we can choose different approaches to fix the problem. If the company is not concerned with cost or much lower-level employee input and decides to take a radical approach that involves a high risk and a lot of time, we can conclude that it has used the Business Process Reengineering (BPR).

Hence, Business Process Reengineering (BPR) is a strategic approach to evaluating and designing business processes and workflow in order to successfully achieve organizational set goals and objectives in product quality and output.

7 0
3 years ago
According to modern growth theory, the key to economic growth is Group of answer choices a large pool of unskilled labor. skille
denis23 [38]

Answer:

Skilled labor

Explanation:

As per the modern economic growth theory, the economic growth would be possible via expenditure done on research & development and have the knowledge regarding innovations so for this the skilled labor is required that helps in research & development and so for innovations

So as per the given statement, the skilled labor is the correct option

Hence, the same is to be considered

5 0
3 years ago
Micker Boots produces cowboy boots, its Raw Materials Inventory account contains only direct materials. If the beginning balance
Alja [10]

Answer:

Purchases= $52,000

Explanation:

Giving the following information:

Beginning inventory= $6,300

Ending balance= $3,300

Production= $55,000

<u>To calculate the direct material purchase, we need to use the following formula:</u>

Purchases= production + desired ending inventory - beginning inventory

Purchases= 55,000 + 3,300 - 6,300

Purchases= $52,000

4 0
3 years ago
U.S. employees work harder now than ever before, and almost 75 percent report regularly experiencing job-related stress symptoms
Nana76 [90]

Answer:

1. Cedrick tends to worry about things in his life, regardless of what’s going on in his job or whether he is facing anything objectively stressful.

d. Worklife balance

2. Chien-Shiung has to miss his daughter’s softball game because he is committed to a work meeting.

d. Worklife balance

3. Lourdes works as a barista at a very busy campus Starbucks location.

 c. Individual role demands

4. Danilo feels anxiety every morning on his commute to work thinking about the fact that he will be spending the next 8 hours with his coworkers who are neither kind nor helpful to one another.

a. Demands created by individual differences

5. Ang manages the front desk at a New York City hotel and has to pretend that he is happy and cheerful all day long, even when customers are rude to him or his employees.

c. Individual role demands

6. Norman works a full-time 8 to 5 job but also does consulting work on the side. He is stressed trying to decide whether he should take two days off from his full-time job, thus putting himself behind on tasks, in order to take advantage of a lucrative consulting opportunity.

b. Individual task demands

7. Teri’s direct supervisor often ignores subordinates’ concerns, manipulates others to get ahead, and engages in unethical behavior.

a. Demands created by individual differences

8. Violeta’s office feels overly stimulating to her. There are too many people crammed into the space, the overhead fluorescent lighting causes her daily headaches, and there are no walls to provide any quiet or privacy for employees.

e. group demands

9. Ahmed’s company expects its employees to be available 24 hours a day. Last week he spent the weekend hiking with friends but was on his phone responding to emails half the time. He knew that if he ignored the emails his boss would reprimand him on Monday.

 f. Organizational demands

10. Farrah is always on the go. She keeps a to-do list for everything, speed walks between meetings, and often feels impatient.

b. Individual task demands

11. Devisha’s manager tends to assign projects without giving much explanation for how employees’ performance will be evaluated. Devisha is experiencing work stress because she has no idea whether she is performing well or not and won’t be sure until her annual evaluation.

b. Individual task demands

12. Philip and his spouse just adopted a baby. Philip is taking a month of paternity leave, and because of this he knows he will likely miss out on being assigned to a project that he was looking forward to working on.

d. Worklife balance

Explanation:

a. Demands created by individual differences: These differences arise by virtue of the fact that humans have different personalities and behaviors that might make us clash with them or misunderstand them.

b. Individual task demands: These problems arise when employees are unsure of the changes that might occur in the jobs given them to accomplish.

c. Individual role demands: These stress issues occur by virtue of the position the employee holds.

d. Worklife balance: This occurs when individuals try to balance life both at home and at work.

e. Group demands: Are stress-related issues that arise due to an employee having to work with others.

f. Organizational demands: Are the stress that arises because of the demands imposed by the company an employee works with.

3 0
3 years ago
True or false: Business messages can be strengthened to counteract issues concerning low credibility. True false question. True
den301095 [7]

True, business messages can be  strengthened to counteract issues concerning low credibility.

<h3>What are business massages?</h3>

These are the various ways and channels that businesses and companies employ to communicate and interact in their business environments.

The various means of sending business messages includes:

  • SMS
  • Fax
  • Emails

Read more on business messages here:

brainly.com/question/5506518

5 0
2 years ago
Other questions:
  • The aggregate demand curve slopes downward indicating that
    13·1 answer
  • To reduce a current account deficit, a country must increase its private saving, reduce domestic investment, or cut its governme
    6·1 answer
  • Lopez company uses standard costing in its manufacturing plant for auto parts. the standard cost of a particular auto part inclu
    7·1 answer
  • What agency provides over 25,000 government publications?
    13·1 answer
  • Journalize the entries to correct the following errors: a. A purchase of supplies for $115 on account was recorded and posted as
    10·1 answer
  • NbADBGLKvb.ka Dvhb.wrkbvkrh.hbk.cS
    10·2 answers
  • Bob manages a cafe. He pays $50,000 for labor and $7,000 for space rental every month. He chose the current space and gave up an
    14·1 answer
  • (Consider This) When the federal government started requiring restaurants to print calorie counts next to menu items:__________.
    10·1 answer
  • An investment promises to return $1,000 at the end of each of the next 5 years and then $2,000 at the end of each of the next 10
    5·1 answer
  • The process of arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!