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shtirl [24]
3 years ago
7

Nouvelle-Aquitaine Railroad is comparing two separate capital structures. The first structure consists of 405,000 shares of stoc

k and no debt. The second structure consists of 252397 shares of stock and $1.82 million of debt. What is the price per share of equity?
a. $75.56.
b. $88.76.
c. $82.42.
d. $72.12.
e. $93.20.
Business
1 answer:
matrenka [14]3 years ago
7 0

Answer:

$11.93

Explanation:

Calculation to determine the price per share of equity

Using this formula

Price per share of equity = Debt under Plan II / (Number of shares under Plan I - Number of shares under Plan II)

Let plug in the formula

Price per share of equity= $1,820,000 / (405,000 - 252,397)

Price per share = $1,820,000 / 152,603

Price per share = $11.93

Therefore the price per share of equity is $11.93

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Answer:

d. All of the above are correct

Explanation:

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The demand curve illustrates the relationship between price and demand for a service or product. The curve is downward sloping showing how the quantity demanded changes with changes in price. Most goods will behave as per the demand curve. However, inferior goods tend to behave differently. An increase in income reduces the demand for an inferior product.

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3 years ago
Suppose the United States is currently producing 200 tons of hamburgers and 60 tons of tacos and Mexico is currently producing 4
4vir4ik [10]

Answer:

Explanation:

United States is producing 200 tons of hamburgers and 60 tons of tacos.

United States' opportunity cost for producing 1 ton of hamburgers

= \frac{60}{200}

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Mexico's opportunity cost of producing a ton of hamburgers

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Since US specializes in making hamburgers, it will produce 200 tons of hamburgers and 0 tons of tacos.

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Genrish500 [490]

Answer:

Option D

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Ray Of Light [21]

Answer:

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Explanation:

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