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olga2289 [7]
3 years ago
10

Stock Value and Leverage Green Manufacturing, Inc., plans to announce that it will issue $2.08 million of perpetual debt and use

the proceeds to repurchase common stock. The bonds will sell at par with an annual coupon rate of 5 percent. The company is currently an all-equity firm worth $7.75 million with 480,000 shares of common stock outstanding. After the sale of the bonds, the company will maintain the new capital structure indefinitely. The company currently generates annual pretax earnings of $1.58 million. This level of earnings is expected to remain constant in perpetuity. The corporate tax rate is 35 percent.
a. What is the expected return on Greens's equity before the announcement of the debt issue?b. Construct Green's market value balance sheet before the announcement of the debt issue. What is the price per share of the firm's equity?c. Construct Green's market value balance sheet immediately after the announcement of the debt issue.d.What is Green's stock price per share immediately after the repurchase announcement?e. How many shares will Green repurchase as a result of the debt issue? How many shares of common stock will remain after the repurchase?f. Construct the market value balance sheet after the restructuring.g. What is the required return on Green's equity after the restructuring?
Business
1 answer:
meriva3 years ago
7 0

Answer:

the question is very long explain me the question then I will help

Explanation:

thank you...

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3 0
3 years ago
Person defines a person waiting for a heart transplant. This class is already written for you. SurvivabilityByAge defines the ra
VLD [36.1K]

Answer:

Explanation:

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The donor heart is matched to the recipient by blood type. More variables are also used to decide which recipient receives a heart if there are not enough hearts available for all recipients waiting for a transplant. The variables included in the decision may include the recipient state of health, cause of the heart condition and the urgency of the transplant.

The main goal of this project is for you to write a matching function that receives as a parameter the number of available hearts for transplant and will output all the recipients ranked in order of precedence.

8 0
4 years ago
A group of users can perform certain operations on a shared workbook. Which option helps them to update and track changes in the
Radda [10]

Answer: Edit option allows everyone in a group to edit the contents work

Explanation:

Hope it helps

6 0
3 years ago
Suppose total benefits and total costs are given by B(Y) = 100Y − 8Y2 and C(Y) = 10Y2. Then marginal benefits are: 14) ______
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Answer:

C) 100 − 16Y

Explanation:

The computation of the marginal benefit is shown below:

The marginal functions represent the derivatives with respect to the total functions as compared to Y.

so, the marginal benefit function is MB(Y)=dB(Y) ÷ dY

d (100Y - 8Y^2} ÷ dY

= 100 -16Y

Therfeore the option c is correct

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