1. executive chalk is financed solely by common stock and has outstanding 25m shares with a market price of $10 per share. it now announces that it intends to issue $160m old debt and to use the proceeds to buy back common stock (from brealey, myers, and allen.) a. how is the market price of the stock affected by the announcement? b. how many shares can the company buy back with the $160m of new debt that it issues? c. what is the market value of the firm (equity plus debt) after the change in capital structure? d. what is the debt ratio (d/e) after the change in structure? e. who (if anyone) gains or loses?
Answers: 1
Business, 21.06.2019 22:00, savannahvargas512
Sharon had some insider information about a corporate takeover. she unintentionally informed a friend, who immediately bought the stock in the target corporation. the takeover occurred and the friend made a substantial profit from buying and selling the stock. the friend told sharon about his stock dealings, and gave her a pearl necklace because she "made it all possible." the necklace was worth $10,000, but she already owned more jewelry than she desired.
Answers: 2
Business, 22.06.2019 11:30, brucewayne390
Schonhardt corporation's relevant range of activity is 2,500 units to 5,500 units. when it produces and sells 4,000 units, its average costs per unit are as follows: averagecost per unitdirect materials $ 7.60direct labor $ 2.90variable manufacturing overhead $ 1.65fixed manufacturing overhead $ 2.90fixed selling expense $ 0.95fixed administrative expense $ 0.65sales commissions $ 0.75variable administrative expense $ 0.65if 4,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to: multiple choicea $16,800b $11,400c $11,600d $15,400
Answers: 3
Business, 22.06.2019 17:00, vistagallosky
Which represents a surplus in the market? a market price equals equilibrium price. b quantity supplied is greater than quantity demanded. c market price is less than equilibrium price. d quantity supplied equals quantity demanded.
Answers: 2
1. executive chalk is financed solely by common stock and has outstanding 25m shares with a market p...
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