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iragen [17]
3 years ago
8

Digital Fruit is financed solely by common stock and has outstanding 37 million shares with a market price of $10 a share. It no

w announces that it intends to issue $280 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:
valentinak56 [21]3 years ago
3 0

Answer:

Market price is unaffected by announcement

Explanation:

This question says that the company has announced intentions to issue $289 million of debt with intentions of buying common stock with proceeds

Price per share has been given as $10. The market price of the stock would not get affected by this announcement.

I have gone ahead to help you calculate the buyback, market value and debt ratio.

Buyback= $280/10 = 28 million shares

Market value = (37-28)*10 + 280 = 370 million

Debt ratio = 280/370 = 76%

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Cash receipts and cash disbursement budgets for a government: Should be prepared monthly or as needed to enhance cash management
nlexa [21]

Answer:

Should be prepared monthly or as needed to enhance cash management, investment management, and short-term debt management.

Explanation:

The government budget with respect to the cash receipts and cash disbursement should be prepared on the monthly basis or it should be prepared as per the requirement so that the managing of the cash could be enhanced also along with it the managing of the investing and managing of the short term debt could also be enhances

Therefore the first option is correct

7 0
3 years ago
Resorts Corp. common stock is selling for $36.75 a share and has a dividend yield of 2.3 percent. What is the dividend amount?
Oxana [17]

Answer:

The Annual dividend amount is: $36.75 x 2.3% = $0.85

Explanation:

The dividend yield is the ratio of a company's annual dividend compared to its share price. The calculated formula of dividend yield as follows:

Dividend Yield =   Annual Dividend  / Share Price

Hence, Annual Dividend = Share Price x Dividend Yield

​

6 0
3 years ago
In "open market operations" to __________ M1, the securities held by a commercial bank (or the public) are exchanged for "cash"
Hoochie [10]

Answer:

expand

Explanation:

In "open market operations" to expand M1, the securities held by a commercial bank (or the public) are exchanged for "cash" from the Fed (the transfer of funds from the Fed to a bank.

The Fed buys securities from banks holding it, for money; so as to increase the supply of money in the economy.

4 0
3 years ago
Chocolate Co. reports the following information from its sales budget: ​ Expected sales:
maksim [4K]

Answer:

The total amount of cash expected to be received from customers in September is: B. $ 108,000

Explanation:

The total amount of cash expected to be received from customers in September include the following :

  1. <em>Cash Sales in the month of September - 25 %</em>
  2. <em>Cash Receipts from Accounts for August Sales - 75 %</em>

<u>The Calculation of cash expected to be received from customers in September is as follows :</u>

Cash Sales - September = 120,000 × 25% =  30,000

Credit Sales - August = 104,000 × 75%      =   78,000

Total                                                              =  108,000

4 0
3 years ago
Financial statements does not cover a period of time but rather reports amounts at a specific point in time?
SashulF [63]
The answer is: Balance sheet
The balance sheet on the financial statements will show the total amount of each accounts that the company manages to accumulate throughout its operational years. The amount of the balance sheet on current year will be used as a starting point when calculating the balance sheet for the next year
6 0
3 years ago
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