The Simon Company (SIMON) currently has $300,000 market value (and book value) of perpetual debt outstanding carrying a coupon r
1 answer:
Answer:
The answer is "4,750"
Explanation:
They have indeed been given the information that we require.
The current market cap for Simon Company (SIMON) is $300,000.
rate= 6%
EBIT=$150,000
The business has no plans to expand.
The current cost of capital is 8.8%,
The tax rate is 40%.
The company has 10,000 shares of common stock mostly on market.
The stock is being offered at a $90.00 per share price.
Assume SIMON is considering switching in its current financial performance to one that results in a share price of $96 per share.
The resultant capital structure would have a combined valuation of $504,000 in capital and $756,000 in equity.
Remaining Shares= equity market value / per share price
The initial number of shares minus the resultant number of shares equals the number of repurchased shares:
AJC will buy back a certain number of shares.
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Answer:
The correct answer is $5.83.
Explanation:
According to the scenario, the given data are as follows:
Cost for 1st unit (C1) = $10
Learning rate (LR) = 0.9
So, we can find the unit cost for 35th unit by using logarithmic approach as follows:
=
Where, = C is for cost and N is for number of unit
= Cost of 1st unit
= N is for number of unit and b is for slope of learning curve.
So, b = (Log of the learning rate) / (Log 2)
So, by putting the value, we get
= $10 ×
= $10 × 0.583
= $5.83
Hence, the unit cost for the 35th unit will be $5.83.
Answer:
a. increasing opportunity costs as more and more of one good is produced
Explanation:
A production possibility frontier is a curve that shows the two combinations of goods an economy can produce given that its resocurces are fully employed.
The production possibility curves is bowed outwards because of increasing opportunity costs as more and more of one good is produced.
If more of one good is to be produced, more of the second good would be given up to increase the production of the first good.
The attached image is the graph of a production possibility frontier. At point A, the maximum amount of good X is produced with zero quantity of good Y. To increase production of good Y and move to point B, some quantities of good X would be given up. To further increase the production of good Y and move to point C, even more quantities of good X would be given up.
I hope my answer helps you
