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S_A_V [24]
3 years ago
5

FARO Technologies, whose products include portable 3D measurement equipment, recently had 36 million shares outstanding trading

at $25 a share. Suppose the company announces its intention to raise $390 million by selling new shares. b. How large a loss in dollar terms will existing FARO shareholders experience on the announcement date, based on studies that show losses are 30% of the size of the new issue
Business
1 answer:
erma4kov [3.2K]3 years ago
6 0

Answer:

A. $117 million

B.13%

C. $21.75

Explanation:

B. Calculation to determine How large a loss in dollar terms will existing FARO shareholders experience on the announcement date

Expected Loss= 390*30%

Expected Loss= $117 millions

Therefore How large a loss in dollar terms will existing FARO shareholders experience on the announcement date will be $117 millions

B. Calculation to determine What percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss

First step is to calculate the Existing Shares Value

Existing Shares Value =36*$25

Existing Shares Value= $900 millions

Now let calculate the Expected Loss %

Expected Loss % = $ 117/$ 900

Expected Loss % = 13%

Therefore the percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss will be 13%

C. Calculation to determine At what price should FARO expect its existing shares to sell immediately after the announcement

Price Per Share: $ 25*(1 - 0.13)

Price Per Share$25*0.87

Price Per Share: $21.75

Therefore what price should FARO expect its existing shares to sell immediately after the announcement is $21.75

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how does the IoT and Big Data currently play into your job, your organization and the industry? Are these two things connected a
emmainna [20.7K]

<u>Explanation:</u>

The term IoT is an acronym for 'Internet of Things' which refers to a modern technology that allows certain physical objects or “things” as we may call it to connect to the internet.

While Big Data refers not just to large data, but to an innovative field of technology that specializes in analyzing very large (big) data sets.

Consider the education industry, by means of IoT, it is possible for school management to effectively track their student's academic progress in real-time.

IoT and Big Data connected in the sense that, as these physical things (objects) communicate over the internet, a mass amount of data ("Big Data") is been generated which could then be analyzed using specialized software. In other words, they are mutually beneficial.

4 0
3 years ago
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control c
svlad2 [7]

Answer:

1. a. The materials price and quantity variances

Material price variance: Standard cost per micron is $1.50 and actual cost per micron is $1.48. So, price variance is 1.48 - 1.5 = $(0.02) per micron

Quantity variance: Based on standard bill of material, Dawson Toys need 3,000 x 6 = 18,000 microns to produce 3,000 Maze toys. Actual consumption volume is 25,000 - 5,000 = 20,000 microns. So, quantity variance is 20,000 - 18,000 = 2,000 microns.

1. b. The labor rate and efficiency variances

Actual labor rate  = Actual labor cost / Actual hour = 88,000/4,000 = $22 per hour.

Efficiency variance = Actual labor rate - Standard labor rate = 22 - 21 = $1 per hour.

2. Prepare a brief explanation of the possible causes of each variance.

Direct material cost variance: Total actual material cost is 20,000 x 1.48 = $29,600, higher than standard material cost of 18,000 x 1.5 = $27,000. This is mainly due to higher production waste as compared to standards.

Direct labor cost variance: Total actual labor cost is $88,000, higher than standard labor cost of 4,000 x 21 = $84,000. This is mainly due to lower labor rate per hour than expected.

Explanation:

5 0
2 years ago
Maria works as a tutor for $10 an hour and as a waitress for $14 an hour. This month, she worked a combined total of 83 hours at
Katena32 [7]

Answer:

$ (-4t+872)

Explanation:

Earning for 1 hour as a tutor= $10

Earnings for 1 hour as a waitress= $14

Total hours worked in the month combined jobs= 83 hrs

Number of hours worked as a tutor for the month= t

Finding the number of hours worked as a waitress for the month= 83-t  hours

Total amount earned that month = amount earned as a tutor+ amount earned as a waitress

Amount earned as a tutor= $10 × t = $10t

Amount earned as a waitress= $14× (83-t)= $ (1162-14t)

Total amount earned combined= $ 10t + $ (1162-14t)

                                                   =$ ( 10t-14t +1162)

                                                   = $ (-4t+872)

4 0
3 years ago
18. If the marginal product of capital net of depreciation equals 10 percent and the rate of population growth equals 2 percent,
zavuch27 [327]

Answer:

rate of technological progress = 8 %

Explanation:

given data

capital net of depreciation = 10 percent

Population growing rate = 2 percent.

solution

we will apply here Golden Rule that is

According to golden Rule level of capital accumulation is in steady state which have the highest level of the consumption

so here rate of technological progress is =  10% - 2 %

rate of technological progress = 8%

and here economy will at Golden Rule steady state

so correct answer is 8 percent

8 0
3 years ago
Long-term objectives are useful because they Multiple choice question. can be accurately measured, whereas short-term objectives
belka [17]

Answer:

Option B

Explanation:

Option B:

Prevent a company from becoming overly focused on the near term and losing sight of larger trends and opportunities.

6 0
3 years ago
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