1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Firms classified as being part of the sharing economy and collaborative consumption are still considered too risky to attract su
geniusboy [140]

Answer:

False

Explanation:

  • The collaborative consumption of goods and services based on a peer to peer model. As its, a capitalist economy has many active producers, and sellers on one side and passive consumers on the other.  
  • The sharing economy is based on the access to the shared goods and services. Poses risks to the venture capital that have a high growth potential.
  • <u>As the startups face uncertainty the venture capital can lead to a high level of failure. Example of the merges and acquisitions and joint ventures.</u>
6 0
3 years ago
Workers who have the skills to operate machines and who require a minimum amount of training are
HACTEHA [7]
Workers who are known to have skills to operate machines and who only require a minimum amount of training are semiskilled laborers. They are known as semiskilled due to the fact that they work using a bit of skills only, and they don't require to learn the whole aspects of the machine.
4 0
3 years ago
Write each item listed below to the appropriate category . GOODS SERVICES Cutting Hair Doctor Computers Cleaning Business Tasks
ankoles [38]

Answer:

Goods are actual tangible items that a person can buy in other to satisfy their needs and/ wants while Services are intangible but are provided to a person by another person in order to satisfy the needs and/or wants of the person the services are being provided for.

GOODS;

  • Material items or products that customers will buy to satisfy a want or need
  • Jewelry
  • Groceries
  • Computers
  • Cars
  • Clothing
  • Ice Cream
  • Magazines

SERVICES

  • Tasks performed by people that customers will buy to satisfy a want or need
  • Cutting Hair
  • Doctor
  • Cleaning Business
  • Package Delivery Business
  • Massage
  • Therapist
  • Dentist
  • Waiting Tables
  • Teaching

5 0
3 years ago
The _____ of a police officer would state that the purpose of the job is to protect citizens, patrol highways, provide safe and
Rom4ik [11]

Answer:

The correct answer is letter "C": job description.

Explanation:

A job description outlines the role of the employees within their organizations. It establishes the behavior expected from the workers in the work frame and the duties attached to their job position. The job description is a brief summary of what the employees would be doing in their day-to-day activities at work.

7 0
3 years ago
Find an article regarding full disclosure or the treatment of accounting changes. In 250-300 words, summarize the article that y
Akimi4 [234]

Hi, since this is an academic writing activity, I simply provided suggestions and explanations of key terms.

<u>Explanation:</u>

Basically writing an essay involves consulting good written sources of information that discuss the subject. The term accounting changes disclosure basically refers to the requirement for companies to disclose

any changes to its:

  • accounting principle,
  • accounting estimates, or
  • reporting entity.

Citation (reference) is a term used in reasearch to describe a source or a list of sources (published and unpublished) where information or data was consulted and used in the research work.

3 0
3 years ago
Other questions:
  • A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to mi
    13·1 answer
  • Nathan owns a quick-lube oil service station. He wants to understand whether his customers are sensitive to price and if he shou
    8·1 answer
  • Why do housing lenders charge more interest up front?
    11·1 answer
  • November 12 - Declared a total cash dividend of $45,000 for stockholders of record November 20 payable on December 1. Record the
    6·1 answer
  • ________________analysis involves determining the appropriateness of training, given the company's business strategy, its resour
    9·1 answer
  • The purchase and resale of treasury stock is normally recorded using the a.direct method. b.equity method. c.cost method. d.indi
    8·1 answer
  • Which of the following correctly explains the crowding-out effect?
    8·1 answer
  • An income statement shows the
    13·1 answer
  • With ______, an organization can parcel out the entire complex work effort to be performed by specialists, which results in grea
    8·1 answer
  • Incapacity or death, bankruptcy, or destruction of property are examples of circumstances where agency terminates by ______.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!