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Travka [436]
3 years ago
11

Based on the corporate valuation model, gray entertainment's total corporate value is $1,150 million. the company's balance shee

t shows $120 million of notes payable, $300 million of long-term debt, $50 million of preferred stock, $180 million of retained earnings, and $800 million of total common equity. if the company has 30 million shares of stock outstanding, what is the best estimate of its price per share?
Business
1 answer:
vagabundo [1.1K]3 years ago
5 0

Answer:

$26.67 million

Explanation:

The computation of price per share is shown below:-

Total market value = $1,150 million + $120 million

= $1,270 million

Market value of equity = Total market value - value of debt - value of preferred stock

= $1,270 million - ($120 million + $300 million + $50 million)

=  $1,270 million - $470 million

= $800 million

Price per share = Market value of equity ÷ Stock outstanding

= $800 million ÷ $30 million

= $26.67 million

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Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will "increase $80,000" to acco
wel

Answer:

External funds needed = $40,000.

Explanation:

An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the  Asset = Liability + Shareholder's Equity Equation unbalanced.

Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).

Net income = Sales * profit margin = $500000*10% = $50000

Dividend= Net income * payout ratio = $50000*20%= $10000

Increase in retained earnings = Net income - Dividend = $(50000-10000)

                                                  = $40000

Increase in assets = $80000

External funds needed = $(80000-40000) = $40,000.

7 0
3 years ago
Supply chain management involves managing: A. managing the stock room supply only. B. the flow of raw materials to inventory onl
aliya0001 [1]

Answer:

Option D is correct because supply chain management is the management of the processes and resources required that flow from the suppliers to the end to the final customer. This also includes the management of stock rooms, raw materials, inventory and internal information as well.

5 0
3 years ago
Read 2 more answers
The Board of Governors of the Federal Reserve a. members are appointed to four-year terms by the President and confirmed by the
Digiron [165]

Answer:

Option  B

Explanation:

In simple words, The seven board members shall be selected by the president of the usa for a phased period of 14 years. The governing board regulates the operation of the federal reserve system and imposes a wide range of financial and consumer lending rules.

Through statute, the president of the usa may select the Board of Directors to have "equal reflection of the political , economic, manufacturing and business concerns and the regional sections of the nation." The country is split into 12 Federal Reserve constituencies and no two administrators may come from the very same Region.

6 0
3 years ago
A certain store sells all maps at one price and all books at another price. On Monday the store sold 12 maps and 10 books for a
solong [7]

Answer:

(B) $0.50

Explanation:

The total cost is a function of the number of maps sold and the number of books sold. To determine the cost of each, a set of equations have to be solved simultaneously.

Let the cost of a map be m and that of a book be b

12m + 10b = 38

20m + 15b = 60

6m + 5b = 19

4m/3 + b = 4, b = 4 - 4m/3

6m + 20 - 20m/3 = 19

2m/3 = 1

m = 3/2 = 1.50

b = 4 - 4m/3

b = 4 - 2 = 2

The cost of a book is $2 while that of a map is $1.50

Hence a map sell for $0.50 less than a book.

7 0
3 years ago
The Washington, D.C.-based Heritage Foundation survey consists of over 178 countries ranked by degree of economic freedom. The k
DedPeter [7]

Answer:

percent foreign ownership.

Explanation:

The twelve freedoms included in the Heritage Foundation of Economic Freedom index are divided into four main categories:  

Rule of law

  • Property rights
  • Judicial effectiveness
  • Government integrity

Government size

  • Tax burden
  • Government spending
  • Fiscal health

Regulatory efficiency

  • Business freedom
  • Labor freedom
  • Monetary freedom

Open markets

  • Trade freedom
  • Investment freedom
  • Financial freedom
8 0
2 years ago
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