1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
8. The TS Company has budgeted sales for the year as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales in units 10,000 12,0
Finger [1]

Answer:

Results are below.

Explanation:

<u>First, we need to determine the production budget using the following formula:</u>

Production= sales + desired ending inventory - beginning inventory

Quarter 1:

Production= 10,000 + (0.25*12,000) - 2,500

Production= 10,500

Quarter 2:

Production= 12,000 + (0.25*14,000) - 3,000

Production= 12,500

Quarter 3:

Production= 14,000 + (0.25*16,000) - 3,500

Production= 14,500

Quarter 4:

Production= 16,000 - 4,000

Production= 12,000

<u>Now, the direct material purchase budget:</u>

Purchases= production + desired ending inventory - beginning inventory

Quarter 1:

Purchase= 10,500*4 + (12,500*0.1) - 4,200

Purchase= 39,050 pounds

Quarter 2:

Purchase= 12,500*4 + (14,500*0.1) - 1,250

Purchase= 50,200 pounds

Quarter 3:

Purchase= 14,500*4 + (12,000*0.1) - 1,450

Purchase= 57,750 pounds

Quarter 4:

Purchase= 12,000*4 - 1,200

Purchase= 46,800 pounds

3 0
2 years ago
Scenario: Sports Stuff Inc. Herb Graham is vice president of Sports Stuff Inc., a business that develops, manufactures, and mark
Vladimir79 [104]

Answer:

Joint venture

Explanation:

A joint venture can be defined as a business arrangement in which two parties come together to achieve a purpose by combining resources of both parties.

A joint venture involves joint ownership of the business.

A joint venture is good because it helps with sharing of liabilities with a partner, access to knowledge, etc.

Cheers

5 0
3 years ago
Mike is applying for a home loan and wants to buy a house worth $150,000 in a neighborhood close to his work. however, he only h
hichkok12 [17]

Pay PMI (private mortgage insurance) which is the amount the lender charges to protect their interests in case the borrower stops paying and defaults on the loan.

6 0
3 years ago
1. Explain the difference between required rate of return and expected rate of return. If they are different at a specific point
77julia77 [94]

Answer: The answers to the questions are provided below.

Explanation:

1. The Required Rate of Return(RRR) is the absolute minimum return on an investment that an individual or firm would accept for the investment to be considered worthwhile. The required rate of return helps in deciding whether an investment is worth the cost or not.

An expected rate of return helps in knowing out how much one can expect to make from an investment. An expected rate of return is the return on investment that an individual or firm expects to make when investing in a stock.

The RRR is the least possible rate which would entice someone to invest while the expected rate of return is what the person plan to make from that investment and its calculation is based on probability.

When there is difference between the required rate of return and expected rate of return for an asset at a specific period of time, it means that the economic conditions aren't normal as there is either inflation or deflation in the market.

2. The holding period return is the total return gotten from holding an asset over a particular period of time which is known as the “holding” period while the expected return is the return based on probability-weighted average of likely returns from an investment.

3. Diversification is a technique that is applied to reduce risk through the allocation of investments among several financial instrument and industries. Diversification aims to maximize the returns through investment in different sectors because each sector will likely react differently when there's a risk. Investing in more than one asset through diversification is essential because each asset will react differently when a risk occurs.

3 0
3 years ago
Con artists who try to talk employees into giving up corporate secrets or passwords are known as
aksik [14]
<span>Social Engineers This is the craft of controlling individuals so they surrender secret data. The sorts of data these hoodlums are looking for can change, however when people are focused on the offenders are normally attempting to deceive you into giving them your passwords or bank data or other sensitive information</span>
8 0
3 years ago
Other questions:
  • As a study aid, your classmate Pascal Adams has prepared the following list of statements about decision-making and incremental
    6·1 answer
  • Suppose a firm that makes appliances merges with a company that produces running shoes, and it later also buys a dairy. what is
    15·1 answer
  • A __________ is a group of products that are closely related because they satisfy a class of needs, are used together, are sold
    5·1 answer
  • Describe what an insurance company does and sells without using the word insurance
    10·1 answer
  • Analog computers needs to borrow $475,000 from the midland bank. the bank requires a 15% compensating balance. how much money wi
    7·1 answer
  • Esquire Comic Book Company had income before tax of $1,700,000 in 2016 before considering the following material items: 1. Esqui
    12·1 answer
  • Which of the following directly influences an employee's voluntary behavior and performance?
    14·1 answer
  • d $22000 for her dream vacation. If she is able to earn 9% per annum on an investment, how much will she need to set aside at th
    14·1 answer
  • On June 30, 2017, Wisconsin, Inc., issued $200,200 in debt and 19,300 new shares of its $10 par value stock to Badger Company ow
    14·1 answer
  • 15 points please help
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!