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dmitriy555 [2]
3 years ago
6

The Bethlehem Inn is an all-equity firm with 9,000 shares outstanding at a value per share of $26.80. The firm is issuing $39,93

2 of debt and using the proceeds to reduce the number of outstanding shares. How many shares of stock will be outstanding once the debt is issued?
Business
1 answer:
IgorLugansk [536]3 years ago
3 0

Answer:

Value of equity = 9,000 x $26.80 =  $241,200

Value of debt issued = $39.932

Value of equity after debt repayment = $241,200 - $39,932

                                                                          =  $201,268                                                                                                                                                                                                                                                                                

No of equity outstanding after debt repayment = <u>$201,268</u>

                                                                                    $26.80

                                                                               =  7,510 shares

Explanation:

In this regard, there is need to determine the value of equity after debt repayment, which is value of equity minus value of debt repaid. Then,we  will divide the value of equity after debt repayment by the value of equity per share. This gives the number of shares outstanding after debt repayment.

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Answer:

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Disadvantages of buying business premises

The disadvantages of buying business premises include the following:

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Explanation:

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3 years ago
The shareholders’ equity of Tru Corporation includes $540,000 of $1 par common stock and $1,140,000 par of 7% cumulative preferr
Dmitry_Shevchenko [17]

Answer:

$12,600

Explanation:

Annual Dividend to preferred stock = $1,140,000 × 7%

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A schedule of preferred stock dividend in Arrears is as follows :

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2016        $79,800           $54,000           $25,800

2017        $79,800           $54,000           $51,600

2018        $79,800           $131,400                 0

Dividends of $131,400 has to be paid in 2018 to cover all the arrears.

Principle : Preference dividends (and their arrears if cumulative) are paid first before dividends distribution to common stock holders.

Common Stock Holders receive the remaining amount of dividends of $12,600 ($144,000 - $131,400)

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Which of the following is true of the Siemens bribery scandal? a not selected option a It stopped before the investigation began
Fiesta28 [93]

Answer:

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During January, Luxury Cruise Lines incurs employee salaries of $2.9 million. Withholdings in January are $221,850 for the emplo
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Explanation:

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(Being the employee salary expense, withholdings, and salaries payable is recorded)

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Answer:

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8 0
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