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blagie [28]
4 years ago
9

Holly's is currently an all-equity firm that has 12,000 shares of stock outstanding at a market price of $36 a share. The firm h

as decided to leverage its operations by issuing $120,000 of debt at an interest rate of 7.2 percent. This new debt will be used to repurchase shares of the outstanding stock. The restructuring is expected to increase the earnings per share. What is the minimum level of earnings before interest and taxes that the firm is expecting? Ignore taxes.$31,104$40,516$42,000$37,141$45,020
Business
1 answer:
vagabundo [1.1K]4 years ago
8 0

Answer:

$31,104

Explanation:

EBIT / 12,000

= [EBIT - ($120,000 × .072)] / [12,000 - ($120,000 / $36)]

EBIT = $31,104

Therefore the minimum level of earnings before interest and taxes that the firm is expecting will be $31,104

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the ending balance of the retained earnings account appears in group of answer choices only the statement of stockholders’ equit
evablogger [386]

The ending balance of the retained earnings account appears both in the statement of stockholders’ equity and the balance sheet.

<h3>Where does retained earnings appear?</h3>

Retained earnings is the profit left after dividends have been paid. It is the profit that is not paid out to shareholders as dividends.

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a point in time. The retained earnings appears in the equity section of the balance sheet.

The statement of stockholders’ equity records the owners equity and changes to the owners equity during a financial year.

The income statement records a company's income and expenses in a financial year. It is used for determining if a firm is operating at a profit or a loss.

To learn more about income statement, please check: brainly.com/question/9060570

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5 0
2 years ago
Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 bil
Svet_ta [14]

Answer:

True

Explanation:

Coke tried to diversify into the bottling industry by acquiring their bottlers and in the process creating a vertically integrated business. However, 5 years later, they did find out how difficult it was and it led to a failed diversification effort when sold off their bottling operations. This was majorly due to the fact that the bottling business required too much capital investment and time. Capital investment and time that an already large enterprise like coca cola couldn't afford at that period. The initial aim was to have control over the whole production process, but soon after the diversification failed, they went back to producing just the concentrates.

7 0
4 years ago
Read 2 more answers
Which is not one of the four criteria for a geometric setting?
Ipatiy [6.2K]
The <span>Three outcomes which are the success, failure, and proficient are </span><span>not one of the four criteria for a geometric setting.
</span><span>
The criteria for geometric setting are:</span>
1. Each observation is subdivided into two categories: Success and Failure.
2. The probability of success remains constant for each observation.
3. The observations are always independent.
4. The variable of interest is defined as the number of trials required to obtain the first success.
7 0
3 years ago
What is a distribution channel?
Ilya [14]

Answer:

Medium of communication

Explanation:

  • Distribution is one of the four main elements of the marketing mix and its a process of making the predictor services available to the costumers and can be done directory by a producer or service provider that has indirect channels of the distributions
  • The decision about the distribution are taken by the companies vision and the mission and the goals of the organization that depends in the strategic planning.
5 0
4 years ago
When the cross price elasticity between good X and other related goods is positive and very low firm X can be assumed to have?
geniusboy [140]

Answer:

c. a significant amount of market power 

Explanation:

Cross price elasticity measures the responsiveness of quantity demanded of a good to the changes in price of another good.

If the cross price elascitiy is postive, the goods are subsituites.

If the cross price elasticity is negative, the goods are complementary goods.

If the cross price elasticitiy is low the firm has market power. It means that it's consumers do not change the quantity demanded when the price of the good changes

If the cross price elasticitiy is high, the market has low market power.

I hope my answer helps you.

3 0
4 years ago
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