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devlian [24]
3 years ago
13

41. You own 25% of Unique Vacations, Inc. You have decided to retire and want to sell your shares in this closely held, all equi

ty firm. The other shareholders have agreed to have the firm borrow $1.5 million to purchase your 1,000 shares of stock. What is the total value of this firm today if you ignore taxes? A. $4.8 million b. $5.1 million c. $5.4 million d. $5.7 million e. $6.0 million
Business
1 answer:
adelina 88 [10]3 years ago
4 0

Answer:

e. $6.0 million

Explanation:

The computation of the total value of the firm is shown below:

The Value of the firm is

= Amount borrowed ÷ ownership percentage

= $1,500,000 ÷ 0.25

= $6,000,000

Hence, the total value of the firm is $6,000,000

Therefore the correct option is e.

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

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Which of the following is specifically designed to increase the long run aggregtae suply curve?
wlad13 [49]

Answer: c) developing new technologies.

Explanation:

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The better technology will make production more efficient by producing more goods at a lesser cost which lead to an increase in the GDP potential of the country which is a shift in the LRAS.

4 0
3 years ago
List 2 advantages and 2 disadvantages of budgeting.
likoan [24]
<h3>Two advantages of budgeting;</h3>

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<h3 /><h3 /><h3>Two disadvantages of budgeting;</h3>

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7 0
2 years ago
Dionne just learned that her company will be announcing layoffs at the end of the month. She is completely overwhelmed by the ne
pochemuha

The answer to the blank space is stress. To be more specific, what Dionne is experiencing a form of stress known as distress, because it is causing her negative or adverse effects, since she is overwhelmed because of it.

There is also another type of stress called eustress which will give the person who is perceiving it a better performance or even a better feeling.

3 0
3 years ago
A firm has a market value equal to its book value. Currently, the firm has excess cash of $300 and other assets of $6,200. Equit
Jlenok [28]

Answer:

new earnings per share is $1.53

Explanation:

Given data

excess cash = $300

Equity is worth = $5,000

other assets = $6,200

stock outstanding  = 500 shares

net income = $720

to find out

new earnings per share

solution

we know that equity per value is Equity / stock outstanding

that is

equity per value = (5000 / 500) = 10

equity per value = $10

and

we can purchase equity with excess cash $300 that is

= excess cash / equity per value

purchase equity with excess cash = (300 / 10)  = 30

purchase equity with excess cash = 30 shares

so

after repurchase we have balance share is =  (500 - 30) = 470

balance share = 470 shares

so that

new earnings per share will be = net income / balance share

new earnings per share =  (720 / 470) = 1.53

new earnings per share is $1.53

8 0
3 years ago
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valentina_108 [34]

Savings, scholarships and state aid are good preparations steps for one to take before applying for federal financial aid because They help one to

save enough money to be able to pay for college and also prevent serious debt after graduating.

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4 0
2 years ago
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