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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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On March 1, the board of directors declared a cash dividend of $0.75 per common share to shareholders of record on March 10, pay
RideAnS [48]

Answer and Explanation:

The Journal Entry is shown below:-

Mar-01

Cash dividends Dr,  $98,250

(131,000 ×  $0.75)

      To Dividends payable Dr, $98,250

(Being declaration of dividends is recorded)

Mar-10

No entry required

Mar-31

Dividends payable Dr, $98,250  

        To Cash $98,250

(To record payment of dividends)

5 0
3 years ago
Consider the assembly line of a laptop computer. The line consists of 9 stations and operates at a cycle time of 2.50 minutes/un
polet [3.4K]

Answer:

17.5minutes

Explanation:

Calculation to determine would be the information turnaround time for a defect made at station 2

Station 2 information turnaround time=[(Station 9-Station 2)*2.50 minutes/unit]

Station 2 information turnaround time=7x 2.50

Station 2 information turnaround time=17.5minutes

Therefore the information turnaround time for a defect made at station 2 is 17.5minutes

7 0
2 years ago
One major negative effect of globalization has been:
aleksandrvk [35]

Answer:

A. environmental damage due to increased production.

Explanation:

Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace.

Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.

Hence, one of the major advantages of globalization is that, it has ensured or made it possible such that economic and environmental conditions in different countries of the world are related and linked with the intention of generating revenue and profits while providing goods and services to meet the demands or requirements of various consumers across the world.

However, one major negative effect of globalization has been environmental damage or pollution due to increased production by various companies across the world.

Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.

4 0
3 years ago
The Yale Company has one bond outstanding. The bond has a $20,000 face value and matures in 20 years. The bond makes no interest
natima [27]

Answer:

$16,695.11

Explanation:

the price of the bond is equal to the present value of its cash flows:

value of cash flows in year 6 = $1,100 x 12.75523 (PV annuity factor, 16 periods, 2.8%) = $14,030.75

value of cash flows in year 14 = $1,400 x 10.07390 (PV annuity factor, 12 periods, 2.8%) = $14,103.46

present value in year 0 = [$14,030.75 / 1.056⁶] + [$14,103.46 / 1.056¹⁴] = $10,118.06 + $6,577.05 = $16,695.11

8 0
3 years ago
Preliminary interviews are only required for the highest paying positions.<br><br> True or False?
ddd [48]
False, because there’s lots that r like that
7 0
2 years ago
Read 2 more answers
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