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Shalnov [3]
2 years ago
11

Digital Fruit is financed solely by common stock and has outstanding 40 million shares with a market price of $20 a share. It no

w announces that it intends to issue $310 million of debt and to use the proceeds to buy back common stock. There are no taxes. a. What is the expected market price of the common stock after the announcement
Business
1 answer:
Marina CMI [18]2 years ago
3 0

Answer:

Digital Fruit

The expected market price of the common stock after the announcement is:

$20 per share.

Explanation:

Outstanding number of shares = 40 million

Market price of outstanding shares = $20 a share

Total market capitalization = $800 million

Debts introduced = $310 million

Market capitalization after the debt issue = $490 million ($800 - 310 million)

Number of shares bought back = $310 million /$20 = 15,500,000

Outstanding number of shares after the buy-back = 40 million minus 15.5 million

= 24,500,000 shares

Expected market price of the common stock after the announcement

= $490,000,000/24,500,000

= $20 per share

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Please answer this!!! Can someone get traced and arrested for taking money out of someone else’s bank electronically account wit
Marysya12 [62]

Answer:

yes

Explanation:

cause you still did fraud

3 0
3 years ago
Gains or losses on cash flow hedges are Group of answer choices ignored completely. recorded in equity, as part of other compreh
Helga [31]

Answer: The correct answer is "recorded in equity recorded in equity, as part of other comprehensive income.".

Explanation: Gains or losses on cash flow hedges are <u>recorded in equity, as part of other comprehensive income.</u>

<u>The gains or losses of a cash flow hedge must be recorded, as part of other comprehensive income, in equity.</u>

7 0
2 years ago
g Ming Company has 500,000 shares of $10 par value common stock outstanding. During the year Ming declared a 10% stock dividend
just olya [345]

Answer:

$2,600,000

Explanation:

total shares of ming company = 500000

the dividend = 10%

10% * 500000 = 50000

stock dividend amount = 50000 share x 30 dolarrs

= 1500000

outstanding shares aftrr dividend = 500000+(500000*10%)

= 500000 + 50000 = 550,000

cash dividend = $2 per share

= 550000 * 2

= 1100000

decrease in retained earning = stock dividend + cash dividend

= 1500000 + 1100000

= $2,600,000

7 0
2 years ago
Sam invests $5,000 of his own money in his new auto detailing business. He then obtains a loan and builds a small workshop in hi
ki77a [65]

Answer:

Assets= 15,000

Liabilities= 10,000

Owner's equity= 5,000

Explanation:

When he invests 5,000 of his own money that 5,000 is an asset as it is cash and the 10,000 he borrows is also an asset as it is cash. The liabilities are 10,000 as he has to pay 10,000 back and it is a loan so it is a liability also.

The owners equity is 5,000 as he invested 5,000 of his own money in the business and that is owners equity.

7 0
3 years ago
Harris Company had checks outstanding totaling $15,400 on its May bank reconciliation. In June, Harris Company issued checks tot
Stels [109]

Answer:

The amount of outstanding checks on Harris Company's June bank reconciliation should be $42700.

Explanation:

Outstanding amount of checks issued = Checks outstanding in beginning of June + Checks issued during the month of June - Checks cleared in June

= $15400  + $64900  - $37600

= $42700

Therefore, The amount of outstanding checks on Harris Company's June bank reconciliation should be $42700.

3 0
3 years ago
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