Use context clues to explain the meaning of the word interdependence in your own words.

Buffalo National Corp. (BNC) is currently an all-equity firm worth $320 million with 50 million common shares outstanding. BNC p

balu736 [363]

Answer:

The solution as per the given problem is provided below throughout the explanation portion below.

Explanation:

The given values are:

Debt issued,

= 120

Pretax earnings,

= 80

Tax,

= 35%

All equity firm,

= $320

Number of common stock,

= 50

(a)

Balance sheet before the debt issue's announcement will be:

Assets  320

Debt  0

Equity  320

then,

The total will be "320".

(b)

The per share price will be:

= $\frac{Equity}{Number \ of \ common \ stock}$

= $\frac{320}{50}$

= $6.40$

or,

After tax, the net income will be:

= $EBIT(1-t)$

= $80(1-0.35)$

= $80\times 0.65$

= $52$

(c)

The return on equity will be:

= $\frac{Net \ income \ after \ taxes}{Value \ of \ equity}$

= $\frac{52}{320}$

= $0.1625$

or,

= $16.25$ (%)

5 0

3 years ago

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two

Ostrovityanka [42]

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

7 0

3 years ago

A leading beverage company sells its signature soft drink brand in vending machines for $0.99 per 12 oz. can. A vending machine

Kamila [148]

Answer:

You didn´t post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.

Explanation:

Contribution per unit = Price - Variable cost = 0.99 - 0.43 = 0.56
Contribution per unit required=0.56 * (1+20%)=0.672
New selling price required=Contribution+Variable cost=0.672+0.42=$1.092

7 0

3 years ago

In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price leve

alisha [4.7K]

Answer:

1. A fall in prices of soybean

2. Reduce quantity she supplies

3. Falls below

Explanation:

We are to fill in the blanks here

1. In this question the farmer expected price level of 100 but the actual price realized was 90 so there would be a fall in the price of soybean.

2. If farmer feels that price of other goods caused this fall, she would reduce the quantity of soybean that she supplies

3. The quantity supplied is then going to fall below natural level in the short run

8 0

3 years ago

In a market with positive externalities, A. there cannot be an efficient level of production. B. the efficient level of product

topjm [15]

Answer: In a market with positive externalities, "C. the efficient level of production is more than what competition will obtain.".

Explanation: An externality is a situation in which the costs or benefits of production or consumption of some good or service are not reflected in its market price. A positive externality is the positive effect of an activity imposed by an unrelated third party.

3 0

3 years ago