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Angelina_Jolie [31]
3 years ago
5

Lara's Inc. Is currently an unlevered firm with 450,000 shares of stock outstanding, with a market price of $15 a share. The com

pany has earnings before interest and taxes of $314,000. Lara's met with his bankers, Warne Incorporated and agreed to borrow $825,000, at 5 percent. You are an ardent investor and you currently own 20,000 shares of Lara's stock. If you seek to unlevered your position; how many shares of Lara's stock will you continue to own, if you can loan out funds at 5 percent interest? Ignore taxes in your deliberations. Kindly show all workings.
Mathematics
1 answer:
MA_775_DIABLO [31]3 years ago
5 0

Answer:

Step-by-step explanation:

Value of firm = Number of shares×Market price per share

= 450,000 × $15

= $6,750,000

Value of debt = $825,000

Weight of debt = $825,000 / $6,750,000 = 12.22%

Number of shares continue to own = 20,000 × (1 - 12.22%) = 17,555.56 or 17,556 shares

Number of shares continue to own = 17,555.56 or 17,556 shares

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What is the question?
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3 years ago
The average speed to go by car from home to college is 30 miles per hour. The average speed to go back home from college is 20 m
Levart [38]

Answer:

24 mph for both 60 miles and 40 miles.

Step-by-step explanation:

We need to find how long it takes to get to college and from it.

Speed x time (x) = Distance (60)

30x = 60

x=2

It takes two hours to get to college

20x = 60

x = 3

It takes 3 hours to get back. It's a total of 5 hours, 2 hours at 30mph and 3 at 20. Now we need to find the average

30+30+20+20+20=120

120/5= 24

The average speed for the round trip is 24.

To do the second part, we follow the same process, but replace 60 with 40 for distance.

30x=40

x= 1.33

20x=40

x=2

We can add the total distance and divide by total time to find the average.

The total distance is 80. Time is 3.33

80/3.33=24

The average speed is still 24.

3 0
3 years ago
Paul is making bread using a recipe. The amount of flour he uses is proportional to the number of loaves of bread. He uses 1114
DiKsa [7]

Answer:

$20

Step-by-step explanation:

Paul is making bread using a recipe. The amount of flour he uses is proportional to the number of loaves of bread. He uses 11 1/4 cups of flour to make 5 loaves of bread. If Paul used 18 cups of flour, and then sold the loaves of bread he made at a bake sale for $2.50 each, how much money would Paul make from his bread sales?

Step 1

Find out how many loaves of bread he can produce from 18 cups of flour

11 1/4 cups of flour = 5 loaves of bread

18 cups of flour = x loaves of bread

Cross Multiply

11 1/4 cups × x loaves = 18 cups × 5 loaves

x loaves = 18 cups × 5 loaves/ 11 1/4 cups

x loaves = 90 ÷ 11 1/4

x loaves = 90 ÷ 45/4

x loaves = 90 × 4/45

x loaves = 8 loaves of bread

He can produce 8 loaves of bread from 18 cups of flour.

Step 2

We are told that:

1 loaf of bread costs $2.50

Hence,

1 loaf of bread = $2.50

8 loaves of bread = $x

Cross Multiply

$x = 8 loaves of bread × $2.50

$x = $20

Therefore, Paul made $20 from his bread sales

8 0
2 years ago
Help me on my math homework first and correct one gets brain.lyest :)
stira [4]
The answer is the third choice they both equal -16/77. Hope this helps:)
7 0
3 years ago
Read 2 more answers
Jenson has a basket containing oranges, apples, and pears. He picks a piece of fruit from the basket 40 times, replacing the fru
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Answer:In this question, we're trying to find how many apples Jenson picked from the basket.

Lets gather information that can help us.

Important information:

Picked a fruit from a basket 40 times

Probability of picking an apple is 0.3

With the information above, we can solve the question.

We know that he picked up a fruit 40 times, but we need to find how many apples he picked up during the 40 times.

The probability of picking an apple is 0.3, which is equivalent to 30%

This means that 30% of the 40 times he picked an apple.

We would multiply 40 by 0.3 to get our answer.

This means that Jenson picked 12 apples.

I hope this helped you out.

Good luck on your academics.

Have a fantastic day!

Read more on Brainly.com - brainly.com/question/12981771#readmore

Step-by-step explanation:

3 0
3 years ago
Read 2 more answers
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