If a business has a surplus of goods, what is something they can do to raise demand?
1 answer:
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Answer:
The answer is "4,750"
Explanation:
They have indeed been given the information that we require.
The current market cap for Simon Company (SIMON) is $300,000.
rate= 6%
EBIT=$150,000
The business has no plans to expand.
The current cost of capital is 8.8%,
The tax rate is 40%.
The company has 10,000 shares of common stock mostly on market.
The stock is being offered at a $90.00 per share price.
Assume SIMON is considering switching in its current financial performance to one that results in a share price of $96 per share.
The resultant capital structure would have a combined valuation of $504,000 in capital and $756,000 in equity.
Remaining Shares= equity market value / per share price
The initial number of shares minus the resultant number of shares equals the number of repurchased shares:
AJC will buy back a certain number of shares.
Complete question:
Security Term (years) Yield (%)
Treasury 2 0 5.5%
AAA Corporate 2 0 7.0%
BBB Corporate 20 8.0%
B Corporate 2 0 9.6%
Wyatt Oil is contemplating issuing a 20-year bond with semiannual coupons, a coupon rate of 7%, and a face value of $1000. Wyatt Oil believes it can get a BBB rating from Standard and Poor's for this bond issue. If Wyatt Oil is successful in getting a BBB rating, then the issue price for these bonds would be closest to:
A) $891 B) $901 C) $1,000 D) $800
Answer:
If Wyatt Oil is successful in getting a BBB rating, then the issue price for these bonds would be closest to: $901
Solution:
Given,
FV = 1000,
N = 40,
I = 4,
PMT = 35
Compute PV ,
PV =
PV = 901.04
If Wyatt Oil is successful in getting a BBB rating, then the issue price for these bonds would be closest to: $901