Many advertising organizations say that applying the term "unfair" to an advertisement is

Neutrino Industries stock trades at $49 per share and there are 120 million shares outstanding. The management would like to rai

Gelneren [198K]

Answer:

Neutrino Industries must sell <u>8.68 million shares</u> to raise $400 million.

Explanation:

To calculate this, let B represents the number of shares Neutrino Industries must sell. Therefore, we have:

Gross proceeds = $49 * B, or $49B

Underwriter charges = 6% * $49B = $2.94B

To raise $400 million, we deduct the underwriter charges from gross proceeds and solve for B as follows:

$49B – $2.94B = $400,000,000

$46.06B = 400,000,000

B = 400,000,000 / 46.06

B = 8,684,324.79 shares, or 8.68 million shares.

Therefore, Neutrino Industries must sell <u>8.68 million shares</u> to raise $400 million.

4 0

3 years ago

Blossom Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at co

horsena [70]

Answer:

$1,012,696

Explanation:

The computation is shown below:

At Cost method:

Merchandise available for sale is :

= Beginning inventory + Purchases + Fright-in

= $403,500 + $3,608,000 + $169,500

= $4,181,000

At Retail method:

Merchandise available for sale:

= Beginning inventory + Purchases + Markups

= $604,000 + $5,393,600 + $424,000

= $6,421,600

Now

Ending inventory at retail is

= Retail - Markdowns - Net sales

= $6,421,600 - $0 - $4,866,000

= $1,555,600

Now

Cost to retail ratio is

= $4,181,000÷ ($4,866,000 + $1,555,600)

= 65.10%

And finally the ending inventory at cost is

= $1,555,600 × 65.10%

= $1,012,696

8 0

3 years ago

Discuss decision making under conditions of uncertainty, specifically using expected monetary value

IceJOKER [234]

Answer with Explanation:

The decision making under the conditions of uncertainty:

Uncertainty is an unquantifiable outcome of a decision that can not be mathematically modeled whereas risk is a quantifiable outcome of a decision that can be mathematically modeled.

The expected value method helps in decision making related to uncertainty are making prudent estimates of cash flow by using expected value.

Expected value considers every outcome under uncertainty and computes all of the expected value for each outcome. The outcome that gives highest expected value is said to be best case and likewise the outcome that gives lowest expected value is said to be worst case.

Suppose that two projects gives the same expected value, then the decision will be based on the degree of uncertainty which means the project that has lowest uncertainty of returns will be our choice.

The deviation of the expected value from required return on a project can be measured as a Degree of uncertainty that helps in understanding to what extent the return will be not as per the expectation. The Precise Measurement of uncertainty can be calculated by inclusion of standard deviation to estimate expected value of the decision taken.

The expected money value is the monetary value that a particular decision will generate. In expected monetary value the decision is based on the weighted average of best case and worst case. The value derived is average thus the standard deviation would be very low which means that the calculation was precise. Decision trees are used in precise measurement of cash flow related to each expected outcome and deriving a weighted average value.

5 0

3 years ago

Suppose the current exchange rate for the Polish zloty is Z 2.92. The expected exchange rate in three years is Z 3.00. What is t

djyliett [7]

Answer:

The answer is 91% or Supposed to be 0.00905

Explanation:

We can use the relative purchasing power parity equation:

Ft = S0 × [1 + (hFC – hUS)]t

We can find:

Z 3.00 =Z 2.92 [1 + (hFC – hUS)]3

hFC – hUS = (Z 3.00/Z 2.92)1/3 – 1

hFC – hUS = .00905

The Inflation in Poland is expected to exceed that in the U.S. by 91% over this period.

3 0

3 years ago

Money, Inc., has no debt outstanding and a total market value of $240,000. Earnings before interest and taxes, EBIT, are project

lara31 [8.8K]

Answer:

a. Calculate earnings per share, EPS, under each of the three economic scenarios (recession, normal, expansion) before any debt is issued. = 1.38667

b. Calculate the percentage changes in EPS when the economy expands or enters a recession. = -20.00%

c. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. = 1.56444

d. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. = -37.14%

Explanation:

7 0

3 years ago