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Marianna [84]
3 years ago
14

Rock Bottom Gold Company recently repurchased 7 million shares of its common stock for $47 per share. The intent of the repurcha

se was to increase earnings per share to be more in line with competitors. Required: 1. Determine the impact of the stock repurchase on assets, liabilities, and stockholders' equity. (Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0). Negative amounts should be indicated by a minus sign.)
Business
1 answer:
Eddi Din [679]3 years ago
5 0

Answer:

a. Assets = Liabilities  + Stockholder's Equity

Assets = Cash (7,000,000*$47) = -$32,90,00,000

b. Liabilities = No Effect

c. Stockholder's Equity = -$32,90,00,000

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Calculate the ROE using the Strategic Profit Model for a company with the following data: Profit margin = 12% Total asset turnov
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Answer:

≅ 21.8%

Explanation:

The Return on Equity can be calculated by ,

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Answer:

the holding period return is 3.77%

Explanation:

The computation of the holding period return is shown below:

Holding period return is

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And, the same is to be considered  

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