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ikadub [295]
3 years ago
13

Uptown Interior Designs is an all equity firm that has 40,000 shares of stock outstanding. The company has decided to borrow $1

million to buy out the shares of a deceased stockholder who holds 2,500 shares. What is the total value of this firm if you ignore taxes?
Business
1 answer:
LuckyWell [14K]3 years ago
5 0

Answer:

The answer is $16 million

Explanation:

Outstanding shares = 40,000

Shares of deceased shareholder = 2,500

Amount borrowed = $1m

We calculate price per share:

This is,

1,000,000 ÷ 2,500

= $400

To get the total value of the firm:

[(40,000 - 2,500) × 400] + 1m

=(37,500 × 400) + 1m

= 15,000,000 + 1,000,000

= $16,000,000

The total value of the firm without taxes is $16 million.

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6 0
2 years ago
Ada signed a simple discount promissory note for $5,500. the discount rate is 12%, and the term of the note is 5 months. what ar
Ivahew [28]
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3 0
3 years ago
The economic effect of an expense is incurred when the benefit expires or is used up not when cash is paid true or false
12345 [234]

Answer:

false

Explanation:

4 0
3 years ago
From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simu
OverLord2011 [107]

Answer:

True

Explanation:

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In simple terms, a company recognizes their greatest weakness and tries to improve it, so that it no longer represents a limitation.

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8 0
3 years ago
Which of the following is not an example of safeguarding inventory? a.storing inventory in restricted areas b.returning inventor
Katen [24]

Answer: Option B

       

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Hence from the above we can conclude that the correct option is B.

8 0
3 years ago
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