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
ludmilkaskok [199]
2 years ago
12

has assets with a market value of $100 million, $10 million of which are cash. has debt of $40 million, and 10 million shares ou

tstanding. Suppose that distributes $10 million as a dividend. Assuming perfect capital markets, what will new market debt-equity ratio be after the dividend is paid
Business
1 answer:
Rufina [12.5K]2 years ago
6 0

Answer:

See below

Explanation:

First, we need to calculate new stock price.

Current stock price = (Assets market value - debt) / Number of shares outstanding.

= (100 - 40)/10

= $6

Assets value after dividend distribution = 100 - 10

= 90

Number of shares purchased = 10/6 = 1.667 million shares

New stock price = (90 - 40)/(10 - 1.667)

= $7.20

Debt equity ratio = Debt / Equity

Equity = Stock price × number of shares

= $ (7.20 × (10 - 1.667)

= $ (7.2 × 8.33)

= $60

Debt = 40

Debt equity = 40/60 = 0.667 times

You might be interested in
Lachlan Stuart is employed by International Paper, a company that values his vision and creativity. To stay ahead in a very comp
Sveta_85 [38]

Answer: c) intrapreneur

Explanation:

Intrapreneur is the person who who belongs to a large firm and acts in the manner of entrepreneur to make innovative development ideas for any project .They help in promotion of production and innovation along with taking measures for functioning in organization.

According to the question,Lachlan Stuart is an intrapreneur who is an employee in a company .He is responsible for methods and ideas development to be ahead of other competing firms.

Other options are incorrect because in-sourced entrepreneur, corporate entrepreneur and multipreneur are not the way in which a person acts like an entrepreneur even through he/she is working for a firm.Thus, the correct option is option(c).

8 0
3 years ago
Michelle owns a rental property in San Diego that she has rented to Luis for four years. The street on which the house is locate
ivolga24 [154]

Michelle must give Luis a sixty-day written notice of the lease termination because he has lived in the property for more than one year.

Explanation:

The landlord must send a 30-day notice of termination in writing with the occupant at the cost of his will, unless the owner stays in the house for more than one year, which includes a notice of 60 days.

The 60 Days Lease Termination Letter is an appointment for a residential property owner to use when he wishes to vacate a tenant for at least a year or more after residing in the house.

In California, a landlord can terminate a rental after a tenant has spent a year or more on the property and has provided the tenant with a notice of sixty days.

8 0
2 years ago
Even though the moving averages help highlight the long-run trend of a time series, the moving-average model is not designed for
kobusy [5.1K]

Answer:

Moving averages <em>cannot be used to make future forecasts successfully because certain events like demand, supply ,quality and external factors such as competitions</em> cannot be determined with the use of Moving averages, and these factors have a huge impact on prices

Explanation:

Moving averages are generated / obtained using data from events that occurred previously hence they highlight the long-run trend of a time series, but <em>they cannot be used to make future forecasts successfully because certain events like demand, supply ,quality and external factors such as competitions</em> cannot be determined with the use of Moving averages. and these factors have a huge impact on prices

4 0
2 years ago
The Accumulated Earnings column of the employee earnings record (A) shows net pay for the year. (B) is the total earnings since
sammy [17]

Answer:

c

Explanation:

7 0
3 years ago
One factor that allows saudi arabia to successfully use strategic trade protectionism to increase oil revenues is that?
enyata [817]

Nations are unable to react by placing limitations on other imports from Saudi Arabia.

What is Strategic Trade?
Strategic commerce refers to the management of certain commodities' export, import, international transit, and transhipment to specific recipients, for specific end-uses/end-users, and under specific conditions. Dual-use drugs and technologies that have both acceptable commercial uses and sensitive uses that could support actions that hurt people or states are those that are listed as subject to UN Security Council Resolution 1540 (2004) and other UN embargoes and penalties. Controlling these commodities requires a balanced strategy; dual-use products, parts, and raw materials must be seen as strategically traded in order to prevent them from moving farther into criminal usages.

To learn more about Strategic Trade
brainly.com/question/17102390
#SPJ4

5 0
1 year ago
Other questions:
  • On August 1, ABC Company sold its investment in Teal Company for $12,400. On the previous balance sheet, the investment had a fa
    6·1 answer
  • business buying often involves long-term relationships with suppliers. How does this affect buying behavior​
    6·2 answers
  • You have just signed a contract to purchase your dream house. The price is $140,000 and you have applied for a $110,000, 30-year
    6·1 answer
  • Caddie Manufacturing has a target debt-equity ratio of .35. Its cost of equity is 12 percent, and its pretax cost of debt is 6 p
    13·1 answer
  • Eve transfers property (basis of $120,000 and fair market value of $400,000) to Green Corporation for 80% of its stock (worth $3
    6·1 answer
  • Smithers is a self-employed individual who earns $30,000 per year in self-employment income. Smithers pays $2,200 in annual heal
    15·1 answer
  • Which of the following are payments to ensure receiving the standard treatment that a business ought to receive from a foreign g
    6·1 answer
  • Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead efficie
    5·1 answer
  • Magellan is adding a project to the company portfolio and has the following​ information: the expected market return is 11.6​%,
    12·1 answer
  • Jed goes to the deli to purchase turkey that costs $6.71 per pound. State regulations indicate that the scale used in the deli m
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!