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WINSTONCH [101]
3 years ago
8

Company X has 100 shares outstanding. It earns $1,000 per year and announces that it will use all $1,000 to repurchase its share

s in the open market instead of paying dividends. Calculate the number of shares outstanding at the end of year 1, after the first share repurchase, if the required rate of return is 10 percent.a) 110.0
b) 100.0
c) 90.91
d) 89.0
Business
1 answer:
Minchanka [31]3 years ago
6 0

Answer:

d) 89.0

Explanation:

The value of the company today is the present value of its cash flows in perpetuity which is the cash flows divided by the required rate of return.

value of the firm=$1000/10%=$10,000

share price=value of the firm/shares outstanding

share price=$10,000/100=$100

number of shares to be repurchased=$1000/$100=10

number of shares after repurchase=100-10=90

note that when 90.91 is rounded to a whole, it turns out to be 92 while 89 is rounded to 90

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In king's view, what three qualities must a movement have in order to achieve the goal of integration?
Novay_Z [31]

Answer:

Martin Luther King Jr. believed that in order for an integration movement to be successful, it had to be:

  1. organized in a militant manner: members must be vigorously active supporting the cause
  2. the movement must have a mass character: must include everyone, not just some selected individuals
  3. the movement must reject (repudiate) violence

If a movement doesn't embrace peace, then it will generate conflict and violence. If the members are passive, there ideals will not be noticed. If the movement does not include everyone, then it will create more segregation.

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3 years ago
Red Roofs, Inc. has current liabilities of $24,300 and accounts receivable of $7,800. The firm has total assets of $43,100 and n
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The amount of the net working capital is -$4,900

Net working capital = $43,100 - $23,700 - $24,300 = -$4,900

What is the meaning of net working capital '?

The net working capital of a corporation is the difference between short-term assets and short-term liabilities (NWC). Positive net working capital indicates that a business has paid its debts and has funds left over to invest in other operational needs, which is fantastic.

Why is net working capital important?

Net working capital is significant because it provides insight into a company's liquidity and determines if it has sufficient funds to meet its immediate obligations. If the net working capital number is zero or higher, the company can meet its immediate obligations.

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8 0
2 years ago
The division of labor means that:_______.a) labor markets are geographically segmented. b) unskilled workers outnumber skilled w
rewona [7]

Answer:

c) workers specialize in various production tasks.

Explanation:

The division of labor means that people, instead of performing a large number of tasks by themselves, only perform a few, or a single task, for which they specialize.

The division of labor is a characteristic of the modern economy, and without it, the levels of production and technology that we have today would not be possible.

4 0
4 years ago
Which is the new crime created by Sarbanes-Oxley? a. mail fraud b. obstruction of justice c. certification of false financial st
meriva

Answer:

The correct answer is letter "C": certification of false financial statements.

Explanation:

The Sarbanes-Oxley Act (SOX) is a statute that aims to increase corporate governance and enhance internal control of companies. SOX's primary purpose is to protect stakeholders from false corporate financial statement representations. Investors must know that the financial information on which they rely is accurate and that their accuracy has been checked by an independent third party.

<em>Altering, destroying, covering-up or falsifying information in the financial statements of a firm is considered a crime since the SOX implementation with a maximum sentence of 20 years.</em>

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3 years ago
Falling economic indicators typically signal ________ in the economy. inflation inflation depression depression expansion expans
Softa [21]

Falling economic indicators typically signal recession in the economy.

This is further explained below.

<h3>What are economic indicators?</h3>

Generally,  A statistic that pertains to an economic activity might be referred to as an economic indicator.

Indicators of the economy make it possible to conduct analyses of past performance and make projections about future performance.

The examination of different phases of company activity is one use of economic indicators.

In conclusion, Typically, a recession in the economy is indicated when economic indices start to fall.

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3 0
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