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Marizza181 [45]
3 years ago
13

Executive Chalk is financed solely by common stock and has 25 million shares outstanding with a market price of $10 a share. It

announces that it intends to issue $160 million of debt and use the proceeds to buy back common stock. Assume that the MM assumptions hold (i.e., no taxes, no costs of financial distress). a) What is the value of the firm before and after the proposed capital structure change
Business
1 answer:
luda_lava [24]3 years ago
6 0

Answer: See explanation

Explanation:

First we will have to calculate the value of the firm before the debt issue. This will be:

= 25,000,000 × $10

= $250,000,000

We also calculate the value of the firm after after the proposed capital structure change. The value of equity will be:

= $250,000,000 - $160,000,000

= $90,000,000

Therefore, the value of debt will also be $160,000,000.

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Ítems that can be touched used and purchased are considered to be ???
olganol [36]
B because it the right answer there
3 0
3 years ago
For each of the following:
Mama L [17]

Answer and Explanation:

As we know that

The assets, expenses contains debit balance while the liabilities, revenues and stockholder equity contains credit balance

So based on this, the classifications are as follows

Particulars    Type of account    Normal balance    Debit or credit     Reason

a. Land            Asset                      debit                       debit            resources on the owners hand        

b. Cash            Asset                      debit                       debit            resources on the owners hand

c. Legal Expense  = expense        debit                        debit         consumption of cost

d. Accounts Receivable      Asset                      debit                       debit      resources on the owners hand

e. Dividends    =     Equity                debit                          debit   distribution made to owners

g. Notes Payable =   Liability            credit                          credit    obligation made to creditors

h. Common Stock = Equity               credit                         credit    investment done by the owners

8 0
3 years ago
This year Nathan transferred $1 million to an irrevocable trust established for the benefit of his nephew. The trustee is direct
iren [92.7K]

Answer:

Zero- there is a $10 Million exemption equivalent ( d )

Explanation:

Annual exemption to be ignored = $15000

$1 million  to an irrevocable trust

taxable gifts = $6 million

A) The amount of gift tax Nathan must remit in 2017 ignoring annual exemption

The gift tax must remit in 2017 is zero because there is a $10 million exemption because of the annual exception ( even if the annual exception is ignored ) and  the lifetime benefits on taxable gifts that Nathan has is approximately $11.4 million, hence he wont be remitting any amount on gift tax in 2017

7 0
3 years ago
Campbell, Inc. has just conducted a SWOT analysis. Typically, the next step in the marketing planning process would be ________
Law Incorporation [45]

There are different kinds analysis. The next step in the marketing planning process would be Identifying and evaluating opportunities and involves using STP (segmentation, targeting, positioning).

<h3>What is Identifying and evaluating opportunities?</h3>

The steps of the strategic marketing process includes mission, situation analysis, marketing plan, marketing mix, and implementation and control.

The third step in the marketing planning process, following the situation analysis, is known to be the steps where one has to identify the various opportunities by using STP which is Segmentation, Targeting, and Positioning.

See full question below

After a firm has conducted a SWOT analysis, it would typically progress to the next step of marketing planning which is _______ and involves using STP (segmentation, targeting, and positioning).

A. defining the mission

B. conducting a situation analysis.

C. identifying and evaluating opportunities

D. implementing the marketing mix

E. evaluating performance

learn more about  marketing planning process from

brainly.com/question/8638255

5 0
3 years ago
In its first month of operations, McLanie Company made three purchases of merchandise in the following sequence: (1) 300 units a
Mila [183]

Answer:

the average unit cost:  $7.917

Explanation:

I think your question is missed of key information, allow me to add in and hope it will fit the original one.  

<em>In its first month of operations, McLanie Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $8, and (3) 500 units at $9. Assuming there are 200 units on hand at the end of the period. Calculate average unit cost. (Round answers to 3 decimal places, e.g. 5.125.)</em>

My answer:

Given:

  • 1) 300 units at $6, (2) 400 units at $8, and (3) 500 units at $9.

<=> Total units = 300 + 400 + 500 = 1200 units

<=> Total cost: 300*$6 + 400*$8 + 500*$9

= $1,800 + $3,200 + $4,500

= $9500

  • As we know that, the average unit cost:

= Total cost / total units

=$9,500 ÷ 1,200 = $7.917

Hope it will find you well.

<em />

6 0
3 years ago
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