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Alexus [3.1K]
2 years ago
11

Looking forward to next year, if Digby’s current cash amount is $17,478 (000) and cash flows from operations next period are unc

hanged from this period and Digby takes ONLY the following actions relating to cash flows from investing and financing activities:
Issues $2,000 (000) of long-term debt
Pays $4,000 (000) in dividends
Retires $10,000 (000) in debt
Which of the following activities will expose Digby to the most risk of needing an emergency loan?
a. Purchases assets at a cost of $25,000 (000)
b. Sells $10,000 (000) of their long-term assets
c. Liquidates the entire inventory
d. Pays a $5.00 per share dividend
Business
1 answer:
Strike441 [17]2 years ago
8 0

Answer:

d

Explanation:

Purchases assets at a cost of $15,000 (000)

Repurchases $10,000 (000) of stock

Issues 100 (000) shares of common stock

Sells $7,000 (000) of long-term assets

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May is a stockbroker. Due to May's statements, Nora believes that the price of OK Goods, Inc. (OKGI), a widely traded stock, is
Anna71 [15]

Answer:

$0

Explanation:

A client can only sue a stockbroker, a financial advisor, etc., only if they made them loss money through fraud or negligence. But in this case, May (stockbroker) apparently made a mistake of value, she did nothing illegal. She might be a terrible broker, but that doesn't make her a criminal. She also didn't breach any fiduciary duty, since investing always carries a risk. If Nora doesn't like to assume risks, then she should purchase government bonds.

4 0
3 years ago
Change Corporation expects an EBIT of $57,000 every year forever. The company currently has no debt, and its cost of equity is 1
Deffense [45]

Answer:

a) $337,615.38

b-1) $360,910.85

b-2) $415,266.92

c-1) $362,637.36

c-2) $438,461.54

Explanation:

a) To find the current value of the company, we have:

\frac{57,000*(1 - 0.23)}{0.13}

= \frac{57,000*0.77}{0.13}

= $337,615.38

b-1) If the company takes on debt equal to 30 percent of its unlevered value.

337,615.38 + (0.23 * 337,615.38 * 0.30)

= $360,910.85

b-2) When the company can borrow at 10 percent. The value of the firm if the company takes on debt equal to 100 percent of its unlevered value will be:

337,615.38 + (0.23 * 337,615.38 * 1)

= $415,266.92

c-1) The value of the firm if the company takes on debt equal to 30 percent of its levered value:

\frac{337,615.38} {(1 - 0.23) * 0.30}

= $362,637.36

c-2) The value of the firm if the company takes on debt equal to 100 percent of its levered value:

\frac{337,615.38} {(1 - 0.23) * 0.1}

= $438,461.54

5 0
3 years ago
"An online service allows users" to integrate their phonebook with their social media profiles and stores it on the cloud. The p
lara [203]

Answer:

software as a service (SaaS)

Explanation:

Software as a service -

It is the model of software distribution , where the third - party provider hosts the applications and provide them to the customer on the internet .

It is the one of the main categories of the cloud computing .

It is similar to application  service provider , even the host is similar to that of the ASP .

In this model , the provider gives a network based access to the customer .

4 0
3 years ago
You're considering an investment that you expect will produce an 8% return next year, and you expect that your real rate of retu
sveta [45]

Answer:

Explanation:

Using Fisher equation <u><em>(Which is estimating the financial mathematics and economics relationship among real interest rates nominal interest rates under inflation.) </em></u>which goes like this

1+i=(1+r)(1+\pi _{e} )

where

i = nominal interest rate\\e = real interest rate\\\pi _{e}  = expected  inflation rate

Inflation = (1+0.08) / (1+0.06) - 1 = 1.88% (Could be approximated as 2%)

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Answer:

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Blue Sus

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