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g100num [7]
3 years ago
14

A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,000 and other assets of $5,000. Equ

ity is worth $6,000. The firm has 600 shares of stock outstanding and net income of $700. The firm has decided to spend all of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed? Group of answer choices
Business
1 answer:
Jet001 [13]3 years ago
6 0

Answer:

500

Explanation:

The computation of Total outstanding shares is shown below:-

Market Value of Shares before Share repurchase = Equity ÷ Number of Shares outstanding

= $6,000 ÷ 600

= $10

Shares repurchased = Excess Cash ÷ Price of a Share

= $1,000 ÷ 10

= 100

Total Outstanding Shares = Number of Shares outstanding  - Shares repurchased

= 600 - 100

= 500

We applied the above formula.

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Answer: (B)

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Explanation:

In a research collaboration, the type and source of funding used, determines ownership of the data in most cases.

In situations where the research is quite expensive to conduct, researchers tend to enter into agreements with firms or institutions that fund the data in exchange for ownership rights.

7 0
4 years ago
Carroll Corporation has two products, Q and P. During June, the company's net operating income was $25,000, and the common fixed
Firlakuza [10]

Answer:

Option (d) is correct.

Explanation:

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or Segment Margin of P = $ 62,000 - $ 21,000

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3 years ago
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The title company charges a fee to effect the closing on behalf of the buyer and seller. who bears the cost of this?
horrorfan [7]
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