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Shalnov [3]
3 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]3 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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On April 11 of the current year, Zack Corporation had a market price of $48 per share of common stock. Its par value was $10 per
ki77a [65]

Answer:

8%

Explanation:

Dividend yield is a measure of business performance, used by investors which compares dividend paid by a stock to its market share.

Given the above information,

Dividend yield = $3.90/$48 × 100 = 8.13%

4 0
3 years ago
Army Crew Team Case study required questions: Why does the Varsity team lose to the JV team? What should Coach P. have done diff
bagirrra123 [75]

Answer:1. The reason that the varsity team lost to JV team is lack of working together as a team.

2.Coach P. when selecting the rowers for the two teams should have looked at both the psychological(personality types and traits, if they are leader or followers etc.) as well as the physical aspect ( Stamina, Speed ,Coordination, Strength etc.) of each individual.

explanation:

1:Even though the varsity team consisted of the best individuals for speed , strength, coordination and endurance, they lacked the cohesiveness to perform as a unit. Each of the eight individual rowers had to be single-mindedly attuned to one another in order to synchronize their rowing and perform in unison. Unfortunately, the team also too many disruptor and lacked a leader.

2:The Coach should have experimented more by creating different scenarios to see how well the individuals responded and performed to one another in different situations when it came to a team environment. For example, putting the rowers in total control of the team's dynamics is the best hands on lesson they could ever experience. This would have allowed the rowers a deeper understanding what it take to be winner from a loser.

3.Coach P. should switch both the teams for Tuesday since after extensive observations and evaluation he has witnessed JV work as a better team. The JV team possessed better synergy, synchronization, and shared a common goal causing them to win more frequently than the Varsity team, despite the fact that the Varsity team had better individual members. In addition, there has been a precedent for switching boats. During the mid-1990’s, the Cornell Coach faced asimilar situation as Coach P. and as a result of him making the switch, both the JV and Varsity teams ended up winning the Eastern Championships. This demonstrates that it is more likely thatthe teams will win if they agree to switch. Moreover, even if Coach P. decided not to switch the teams, it would have taken quite a while to rebuild Varsity’s team structure, morale, and overall team synergy, implying that they probably would not have been ready in time to compete and win the race as the Varsity team anyway.

3 0
4 years ago
the act of an insurance company publishing misleading information about its policy provisions is called
tester [92]

Answer:

The right response is "False advertising". A further explanation is given below.

Explanation:

  • False advertising refers to just about every documented argument but rather television advertising which always benefits customers an inaccurate view as well as believing of the prospective customer.
  • Regrettably, several other organizations have decided to appreciate the value of having appeared to receive just one substantial discount and perhaps another opportunity to encourage people to purchase, with really no intention of agreeing.
3 0
3 years ago
Charleston Clothing purchased​ land, paying $ 110,000 cash and signing a $ 280,000 note payable. In​ addition, Charleston paid d
Reil [10]

Answer:

Dr Land 397,950

    Cr Cash 117,950

    Cr Notes payable 280,000

Explanation:

Certain ordinary and necessary costs can be included in the purchase cost of land:

  • cost of the land
  • title fees
  • applicable taxes
  • legal fees
  • broker fees
  • survey costs
  • leveling costs
  • zoning fees
  • etc.

In this case, the total purchase cost of the land = $110,000 + $280,000 + $1,400 + $650 + $5,900 = $397,950

3 0
3 years ago
Match the definitions to the words by filling in the correct letter. a. desire for pleasure b. belief that something might be tr
Ahat [919]

Answer: In the answer I was able to match each sentence to the particular word they describe:

a. A desire for pleasure is VOLUPTUOUSNESS.

b. To belief that something might be true even though it cannot be confirmed is to SURMISE.

c. An extremely large number is a MYRIAD.

d. To pay a cost or expense is to DEFRAY.

e. A barren, open country covered with small shrubs is a HEATH.

3 0
3 years ago
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