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iragen [17]
2 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]2 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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Based on what you learned so far, what options can you think of to deal with the stray animal problem in Townsville?
cestrela7 [59]

Answer:

As mentioned in the question, the answers are:

1. Build an animal shelter

2. Begin a trap, neuter, release program.

Explanation:

1. Build an animal shelter

This is a great solution to deal with the problem of stray animals because of several reasons:

a) With fewer animals roaming about in the streets, there will be fewer instances of animal feces lying on the street, which is both unpleasant and unhygienic.

b) Lowered risk of animals catching infectious diseases and spreading them

c) Fewer automobile accidents caused by vehicles hitting stray animals on roads

d) When kept in animal shelters, these animals, particularly domestic ones, can be adopted.

2. Begin a trap, neuter, release program.

This another effective solution to deal with the problem of stray animals, because when animals are neutered and released back on the streets, they will no longer be able to reproductive and give birth to offspring, which would only multiply the number of stray  animals, and issues associated with.

Out of the two solutions, the first one, while more time consuming and expensive is most optimal to deal with the problem of stray animals.

6 0
2 years ago
PERSONAL FINANCE! Please help me
Neporo4naja [7]

Answer:

maybe dont spend money on stuff

Explanation:

yo yoooo

3 0
2 years ago
In its first month of operations, Concord Corporation made three purchases of merchandise in the following sequence: (1) 250 uni
Serggg [28]

Answer:

FIFO - $1350

LIFO - $900

Explanation:

Total inventory = 250 + 350 + 450 = 1050

Total inventory sold = 1050 - 150 = 900

FIFO means first in , first out. It means that it is the first purchased inventory that is the first to be sold. So the ending inventory would consist of the last purchased inventory. So the cost of the ending inventory would be allocated to the 3rd purchase of inventory

150 x $9 = $1350

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold. So the ending inventory would consist of the first purchased inventory. So the cost of the ending inventory would be allocated to the 1st purchase of inventory

150 x $6 = $900

I hope my answer helps you

6 0
2 years ago
Widden Company, which sells electric razors, had $320,000 of the cost of goods sold during the month of June. The company projec
dlinn [17]

Answer:

(a) $349,800

(b) $299,350

Explanation:

Given that,

cost of goods sold during the month of June = $320,000

Increase in the cost of goods sold during July = 9%

Closing balance of June = $33,000

Desired ending inventory balance for July = $34,000

Accounts payable balance as of June 30 = $37,000

(A) Amount of purchases budgeted for July:

= Cost of goods sold + Closing inventory - Opening inventory

= [$320,000 × (1 + 0.09)] + $34,000 - $33,000

= $348,800 + $34,000 - $33,000

= $349,800

(B) Amount of cash payments budgeted for inventory purchases in July:

= Opening accounts receivables + 75% of purchases in July

= $37,000 + (75% × $349,800)

= $37,000 + $262,350

= $299,350

7 0
3 years ago
Why is entrepreneurship important to society?​
almond37 [142]

Answer:

Etrepreneurship is important as it has the ability to improve standards of living and create wealth, not only for the entrepreneurs, but also for related businesses. Entrepreneurs also help drive change with innovation, where new and improved products enable new markets to be developed.

Explanation:

Hope I helped

7 0
3 years ago
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