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Natasha_Volkova [10]
3 years ago
15

Dye Trucking raised $85 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $8.50. If Dye

had 70 million shares of stock before the recap, how many shares does it have after the recap
Business
1 answer:
ivanzaharov [21]3 years ago
8 0

Answer:

60,000,000

Explanation:

Dye trucking raised $85 million to buy stock

After the recap Dye's stock price is $8.50

Dye share had 70 million share before the recap

Therefore the number of shares present after the recap can be calculated as follows

= 70,000,000-(85,000,000/8.50)

= 70,000,000-10,000,000

= 60,000,000

Hence the number of shares after the recap is 60,000,000

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If Management was not concerned with the time value of money, from which two capital budgeting methods should they choose?
Neporo4naja [7]

Answer:

ARR or Payback

Explanation:

Here are the options to this question

Multiple Choice

BET or IRR

ARR or Payback

NPV or IRR

NPV or Payback

BET or NPV

Accounting rate of return = Average net income / Average book value  

Average book value = (cost of equipment - salvage value) / 2

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period = Amount invested / cash flow

The NPV and IRR considers the time value of money by discounting the cash flow at discount rate.

Net present value is the present value of after tax cash flows from an investment less the amount invested.

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

7 0
3 years ago
If stock prices are expected to drop dramatically, then, other things equal, the demand for stocks will ________ and that of tre
SashulF [63]

Hello there

the answers are

decrease

and

increase

hope this helps


5 0
3 years ago
Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and
Snezhnost [94]

Answer:

depreciable amor 10.95 dollars per Activity 2 base cost object.

Explanation:

\frac{Activity\: Pool}{Activity \: base}= Activity\:Rate

totoal expected cst: 35,040

activity 2 expected cost dirver Total  3,200

Activity rate: $35,040 cost pool / 3,200 driver expected amount = $10.95

7 0
3 years ago
True or false. The financial crisis hastened the ongoing process in which the financial services industry was transforming from
drek231 [11]

True.The financial crisis hastened the ongoing process in which the financial services industry was transforming from having a few large firms to many small firms.

Explanation:

The financial crisis broke the back of many big firms especially working the stock market and exchange. Financing services were being handled by big behemoths during the time that harbored a lot of space in the industry and did not allow smaller firms to take over the tasks and succeed in their stead.

The crisis made it impossible for their business models to sustain and no one could afford a hefty sum for financial services so smaller companies with less operational costs took their place.

5 0
3 years ago
A partner (owner) who invests money in a business does not take an active role in managing the operation, and is only subject to
Mashutka [201]

Answer:

Limited partner

Explanation:

A limited partner has limited liabilities and doesn't take an active role in managing the operation of the business. A limited partner is also known as a silent partner.

I hope my answer helps you

3 0
3 years ago
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