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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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At the beginning of the year, your neighbor bought 250 shares of Nu-Tek Corporation and paid $104.32 per share. The share price
Vesna [10]

Answer:

Return on investment= 87.87 %

Explanation:

Dollar return on investment is the sum  of the capital gains and the dividend received all expressed as a percentage of the cost of the investment.

Total  cost = 250×104.32=26,080

Total capital  gain = (193.65- 104.32)× 250 = 22,332.5

Dividend = $2.34 per share×250 = 585

Dollar return on Investment = (585 +22,332.5) /26080 × 100

               = 87.87 %

8 0
3 years ago
Leach Inc. experienced the following events for the first two years of its operations:
aniked [119]

Answer:

that is too hard check gogle

3 0
3 years ago
Schreiber Industries estimates bad debts at 2% of sales. Schreiber began the year with $270,000 of accounts receivable and $38,6
lorasvet [3.4K]

Answer:

The total amount of account receivable it's $246.400

Explanation:

At the beginning the company had $270.000 in the account receivable and $38.600 of allowance for bad debt, when the company wrote off bad debt, it entry a credit in the Account Receivable and a Debit in hte Allowance for bad debt.

The new balance are $244.400 in the accounts receivables and $12.600 as credit in the allowance for bad debt, with the new sales the company generate an extra account receivable of $15.000, so the net value of Accounts Receivable it's $246.400.

7 0
3 years ago
The Total Debt to Total Capital ratio is an effective type of debt management ratio because it gives an idea of:______
Vaselesa [24]

Answer:

c. how the firm has financed its assets as well as the firm’s ability to repay its long-term debt.

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The Total Debt to Total Capital ratio is also known as the Debt to Equity Ratio. This ratio shows how much foreign money is used by the Company. Also important, it reveal the firms ability to repay its long term debt.

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Answer and Explanation:

If the broker shall have an "ownership interest" in a company, joint venture or alliance, and shall receive payments for the selling or lease of such land of these institutions.

Then the broker may choose to set up a separate escrow account for each "major accounting company" controlled or otherwise operated to comply with this and other regulations.

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3 years ago
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