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Komok [63]
3 years ago
6

Hallie owns 20% of the common stock of the Bean Brothers Coffee Company. The company announced plans to offer an additional 10,0

00 shares of common stock for sale. If Hallie exercises her preemptive rights, Bean Brothers must offer her the opportunity to purchase?
Business
1 answer:
RideAnS [48]3 years ago
7 0

Answer:

2,000 shares

Explanation:

Hallie's preemptive rights allow her to buy up to 20% of the new stocks issued, so 20% of 10,000 is 2,000.

Preemptive rights give a shareholder the right to purchase a proportionate number of shares of future shares issued, this way the investor may keep the same ownership proportion.

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A company has a $20 million portfolio with a beta of 1.2. It would like to use futures contracts on a stock index to hedge its r
11111nata11111 [884]

Answer: 88.89 or 89

Explanation: Futures contract refers to a legal binding which obligates a buyer and seller to transact about a commodity, good, security or services at a predetermined price but goods are delivered or paid for in the future.

Given the following ;

Portfolio value(p) = $20million

Portfolio Beta (b) = 1.2

Index price (i) = 1080

Multiplier = 250

Future value(A) = index price × multiplier

Future value(A) = 1080 × 250 = 270000

Number of contracts (N) = (portfolio value × portfolio Beta) ÷ future value

N = ($20,000,000×1.2)÷270000

N = 24000000 ÷×270000

N = 88.8888=88.89

N = 89 (NEAREST whole number)

7 0
3 years ago
For each ratio listed, identify whether the change in ratio value from 2014 to 2015 is usually regarded as favorable or unfavora
xz_007 [3.2K]

Answer:

1.  Favorable

2. Unfavorable

3. Unfavorable

4. Favorable

5. Favorable

6. Unfavorable

7. Favorable

8. Favorable

Explanation:

1.  Favorable

Less Profit is now being earned per sale

2. Unfavorable

More Debt more Financial risk

3. Unfavorable

Less Profit is now being earned per sale

4. Favorable

A lower ratio is good shows efficiency utilization of resources

5. Favorable

The company is efficient in collection of debt

6. Unfavorable

The earning per share is lower

7. Favorable

More efficient in inventory management

8. Favorable

More return given to investors

3 0
3 years ago
Colgate-Palmolive Company reports the following balances in its retained earnings. ($ millions) 2010 2009 Retained earnings $14,
ahrayia [7]

Answer:  $1,031 million

Explanation:

Given that,

Retained earnings(2010) = $14,329 million

Retained earnings(2009) = $13,157 million

Net income(2010) = $2,203 million

Amount of dividends = Retained earnings(2009) + Net income(2010) - Retained earnings(2010)

                                   = $13,157 million + $2,203 million - $14,329 million

                                   = $1,031 million

Therefore, amount of dividends did Colgate-Palmolive pay to its shareholders in 2010 is $1,031 million.

3 0
3 years ago
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Why microeconomics is useful in business decision making? Explain​
adelina 88 [10]

Explanation: The study of microeconomics helps the decision makers to analyze and determine how the productive resources are allocated for various goods and services. It also helps in solving the producers' dilemma of what to produce, how much to produce and for whom to produce. <33

7 0
3 years ago
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What is the viability and relevancy of insurance products sold to businesses and individuals ?
vfiekz [6]
Businesses good but very hard.
6 0
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