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Fynjy0 [20]
3 years ago
8

The following data apply to Garber Industries, Inc. (GII): Value of operations $1,000 Short-term investments $100 Debt $300 Numb

er of shares 100 The company plans on distributing $100 as dividend payments. What will the intrinsic per share stock price be immediately after the distribution? a. $7.72 b. $6.32 c. $7.00 d. $7.35 e. $6.65
Business
1 answer:
kari74 [83]3 years ago
5 0

Answer:

The correct option is $7,option C

Explanation:

The approach here is that we calculate the value of the firm after the cash dividend distribution ,which is simply the value of operations of $1000 since the short-term investments of $100 has been used in paying dividends.

Thereafter,the value of equity is the value of operations of $1000 minus the value of debt at $300,that is $700 ($1000-$300).

Finally intrinsic share price=value of equity/number of shares

number of shares is 100

intrinsic value per share=$700/100=$7 per share

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5 0
2 years ago
When the price of Nike soccer balls fell, Ronaldo purchased more Nike soccer balls, and fewer Adidas soccer balls. Which of the
Pie

Answer:

The correct answer is (A)

Explanation:

Nike and Adidas are considered as substitute goods that means they have positive cross elasticity of demand. When the price of Nike soccer balls fell, Rolando purchased more Nike balls compared to Adidas balls because of the substitution effect. The substitution effect led to this decision. A substitute effect is a change in the purchase decision, due to an increase in the price of one substitute good.

8 0
3 years ago
Consider a second hand car market where three types of cars are being sold: High quality (H), medium quality (M) and low quality
Ann [662]

Answer:

a) Determine which type of cars will be sold at the efficient allocation.

All cars would be sold in a Pareto efficient allocation.

In a Pareto efficient market, resources are all allocated in the most efficient possible way. This is the reason why this is just a theoretical concept that does not necessarily apply in real life.

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Since consumers are only willing to pay up to $1,620 for a used car, only medium quality and low quality cars will be sold. The price of high quality used cars is higher than the equilibrium price.

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3 0
3 years ago
For a new Madden video game, EA Sports decides to have Patrick Mahomes on the cover and run an ad campaign on ESPN. After the ad
Masteriza [31]

The process that EA Sports carried out with the cover of the Madden video game was Perception Marketing.

<h3>What is perception marketing?</h3>

Perception marketing is an economic term that refers to the set of marketing strategies focused on the consumer's perception of a specific product.

In general, perception marketing is responsible for modifying the image of the product so that it is the one that looks best compared to its competitors and thus generates a good perception in consumers.

According to the above, EA Sports used the image of a famous person so that consumers had a positive perception of their video game.

Learn more about marketing in: brainly.com/question/13414268

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6 0
2 years ago
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Answer:

A) firm offer rule

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The firm offer rule states that an offer shall remain open and firm until its expiration date (in this case a fortnight). Stelwire LLC can revoke an offer (anyone can) but in order to do so, it must notify the other party about the revocation. If Stelwire LLC didn't properly revoke the offer before Ralph accepted it, then they are liable for it.

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