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
blagie [28]
3 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]3 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

You might be interested in
Wyatt is paying back a loan with a nominal interest rate of 13. 62%. If the interest is compounded quarterly, how much greater i
iren2701 [21]

Wyatt's effective interest rate would be greater than his nominal interest rate include option D: 0. 71 percentage points.

<h3>How much greater is Wyatt’s effective interest rate than his nominal interest rate?</h3>

Given Information:

Nominal interest rate =13. 62%

Effective rate of return=(1+\frac{i}{m} )m-1\\\\Effective rate of return= (1+\frac{0.1362}{4})4}-1\\Effective rate of return=0.1433

Here, the value of the effective rate of interest is 0.1433 that is multiplied with 100 to get the percentage value of 14.33%.

Hence, the difference between effective and nominal interest rates would be:

=14.33-13.62

=0.71%

Therefore, correct option is D.

Learn more about compound interest, refer to the link:

brainly.com/question/26077656

8 0
2 years ago
Question 2 of 20 what was the impact of mao zedong's great leap forward in china? o a. mao's oppression of urban workers allowed
Ugo [173]

The impact of mao zedong's significant leap forward in china c. mao's efforts to contend with the soviet union resulted in an economic boom

The weather in 1959 was catastrophic and the yearly harvest was not nearly enough to support the Chinese population which led to general famine.

<h3>What was the result of the Great Leap Forward?</h3>

Instead of promoting the country's economy, The Great Leap Forward resulted in mass hunger and famine. It is estimated that between 30 and 45 million Chinese citizens died due to famine, execution, and coerced labor, along with massive economic and environmental collapse.

<h3>What was the Great Leap Forward and how did it affect China?</h3>

The Great Leap Forward was a push by Mao Zedong to change China from a largely agrarian (farming) society to a modern, industrial society—in just five years. It was an unbelievable goal, of course, but Mao had the ability to force the world's largest society to try. The effects, unfortunately, were disastrous.

To learn more about Great Leap Forward, refer

brainly.com/question/27565817

#SPJ4

4 0
2 years ago
It is not a consumers responsibility to report fraudental activity
creativ13 [48]

If this is a true/false question, the answer is FALSE.

It is consumers' responsibility to report fraud when it occurs.

4 0
3 years ago
What does WMT mean in the stock market?
iris [78.8K]

Answer:

World Trade Market

Explanation:

WTM means the world trade market. It is the market at which everyone trades their stocks.

8 0
3 years ago
Tony has been sent to sales training and the final examination requires delivering an effective sales presentation. If he passes
vazorg [7]

Answer: interactional

Explanation:

Based on the information given, the trainer’s failure to discuss these aspects of Tony’s presentation performance demonstrated a lack of attention to the interactional justice.

Interactional Justice involves the communication of the procedures that are used in judging the performance of a person. It focuses on the treatment that individuals get when there are implementation of certain procedures. This standard is utilized by the employees at work.

In this scenario, the trainer failed to interact with Tony as he didn't explain his flaws to him and didn't tell him the reason that he wasn't chosen. Thereby, the trainer didn't pay attention to interactional fairness.

8 0
3 years ago
Other questions:
  • Has this question helped you in in life!
    10·1 answer
  • What is an employee stock ownership plan
    7·1 answer
  • "press firmly to learn what your breasts feel like. a firm ridge in the lower curve of each breast is normal." this step for bse
    14·1 answer
  • What are the 3 Building Blocks of Debt
    14·2 answers
  • Assume that the risk-free rate is 3.5% and that the market risk premium is 4%.What is the required rate of return on a stock wit
    11·1 answer
  • Which of the following strategies in the marketing mix aims at bringing about mutually satisfying exchanges with target markets
    7·1 answer
  • You are a loan officer at a bank. An application comes to you for $5000 loan. Explain why you would want to know the persons cre
    14·1 answer
  • Why do some job markets offer more potential than others?
    12·1 answer
  • There are 3 servers in the checkout area. The interarrival time of customers is 2 minutes. The processing time is 5 minutes. The
    15·1 answer
  • Dirty data is an MIS problem, not a business problem. Group startsTrue or FalseTrue, unselectedFalse
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!