Answer: a. $5.50
b. $6.1
c. $3,500,000
Explanation:
a. From the question, we are informed that Hawar International is a shipping firm with a current share price of $5.50 and 10 million shares outstanding and that Hawar announces plans to lower its corporate taxes by borrowing $20 million and repurchasing shares.
We are informed that Hawar announces plans to lower its corporate taxes by borrowing $20 million and repurchasing shares. This is a transaction and therefore, the value if the share won't be changed. So, the value for the share will still be $5.50.
b. If the only imperfection is corporate tax rate of 30%, the share price after this announcement will be:
= [30% × (20million/10million)] + $5.50
= [0.3 × 2] + $5.50
= $0.6 + $5.50
= $6.1
Therefore, the share price be after this announcement will be $6.1.
c. If the share price rises to $5.75 after this announcement, the PV of financial distress costs Hawar will incur as the result of this new debt will be:
= ($6.1 - $5.75) × 10,000,000
= $0.35 × 10,000,000
= $3,500,000
Answer:
Ending inventory= $18,795
Explanation:
Giving the following information:
The variable production costs are $13.90
Assuming a beginning inventory of zero, production of 5,900 units and sales of 4,550 units.
<u>Under the variable costing method, the unitary product cost is calculated using the direct material, direct labor, and variable allocated overhead. In this case, the variable production cost.</u>
Ending inventory= (5,900 - 4,550)*13.90= $18,795
Answer:
public relations
Explanation:
The other choices are all Science related so they are likely majors but, public relations are not.
Answer:
Attractive nuisance doctrine
Explanation:
Under attractive nuisance doctrine, a landowner is held responsible for the injuries or death caused to children while playing on the land owned by him. The child or children could have got attracted to the land without knowing the danger or hazards present on the land.
This comes under intentional tort that imposes responsibility on the landowner for ensuring the safety of the trespassers.
