A firm has $75 million of assets that includes $12 million of cash and 25 million shares outstanding. If the firm uses $12 million of cash to repurchase shares, what is the new price per share

Answers

Answer 1

The new price per share is $3 if the firm uses $12 million to repurchase shares since demand will drive up the price after the repurchase.

What is share repurchase?

A share repurchase occurs when a company buys back its shares from the stock market.

The shares may be repurchased at a discount or premium.

When the share repurchase is completed, the demand for the shares normally increases, thereby driving the price up.

Data and Calculations:

Assets value = $75 million

Cash balance = $12 million

Outstanding shares = 25 million

Current price per share = $3 ($75 million/25 million)

Repurchase of shares = $12 million

Number of shares repurchased = 4 million ($12 million/$3)

New total assets = $63 million ($75 - $12 million)

New shares outstanding = 21 million (25 - 4 million)

New price per share = $3 ($63 /21 million)

Thus, the new price per share is $3 if the firm uses $12 million of cash to repurchase shares.

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Related Questions

If you paid $1050 for a $1000 10-year bond that pays an 11% annual interest payment, the bond's yield is

Answers

The bond yield of the bond that cost $1050, has a face value of $1000 and an annual interest payment of 11% is 10.18%.

What is the bond yield?

The bond yield is the inerest rate that would equate the cost of the bond with its face value and interest payments.

The bond yield can be determined with a financial calculator:

Cash flow in year 0 = $-1050 Cash flow each year from year 1 to 10 = $110 Cash flow in year 10 = $1000

Bond yield = 10.18%

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day trading, and how is it different from the more traditional approach to investing?
7. How much profit (if any) wóżld Clay Sorensen make if he short-sold 300 shares of a stock at $100 a
share and the price of the stock suddenly tumbled to $70?
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Day Trading requires that position are opened and closed in one day after the purchase of securities, while traditional approach is investing in an asset that is known

Day Trading

We have higligted above about the disimilarities between Day trading and and Traditional investment.

Short-position

Number of Shares = 300

Price Entry = $100

Price Exit = $70

Profit = (Cost Price - Selling price)/Number of Shares

Profit = (300*100 - 300*70)/30

Profit = 30000-21000/30

Profit = 9000/30

Profit = $30

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To perform a vertical analysis of an income statement, you would divide each line item on the statement by ______.

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You would divide each line item on the statement by •SALES•

Interest groups are often categorized by the causes or people they represent. Match each example of a specific interest group to the correct interest group category.

Answers

Public action committees (PAC) is an example of a specific interest group that was established primarily to influence election.

What is an interest group?

An interest group can be defined as a group that comprises individuals who are only concerned about influencing policies of the government based on their interests, cause, common aims, goals, or people they represent.

In the United States of America, some examples of interest groups include the following:

Public action committeesLabor groupsEnvironmental interest groupsAnimal rights groups

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A job candidate who is capable of maintaining effective workplace relationships demonstrates Multiple Choice competence. character. creativity. coherence. caring.

Answers

A job candidate who is capable of maintaining effective workplace relationships demonstrates the coherence trait.

What do you mean by a job candidate?

A job candidate refers to an applicant who can be considered for a job.

A job candidate who is capable of maintaining effective workplace relationships demonstrates a coherence trait.

Therefore, D is the correct option.

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If the ussr’s economy had remained agriculture-based rather than industrialized, then.

Answers

Answer:

then the unemployment rate among men would have been much lower. women would have been much less in demand in the workforce. crop productivity would have led to larger, better nourished populations. children would not have had to leave school early to work in factories.

Explanation:

women would have been much less in demand in the workforce.

E-Tech Initiatives Limited plans to issue $550,000, 10-year, 3 percent bonds. Interest is payable annually on December 31. All of the bonds will be issued on January 1, 2019. Show how the bonds would be reported on the January 2, 2019, balance sheet if they are issued at 95. (Deductions should be indicated by a minus sign. )

E-TECH INITIATIVES LIMITED

Balance Sheet (partial)

As of January 2, 2019

Carrying Value

Answers

This is how the bonds issued by E-Tech Initiatives Limited on January 1, 2019, will be shown on its balance sheet on January 2, 2019:

E-TECH INITIATIVES LIMITED

Balance Sheet (partial)

As of January 2, 2019

Long-term Liabilities:

Bonds Payable (Carrying Value)

Face value = $550,000

Discounts          (27,500) $522,500

How is the carrying value of bonds payable shown on the balance sheet?

The carrying value of this bond equals its par or face value ($550,000) plus any unamortized premiums or less unamortized discounts ($27,500).

Thus, the net amount between the par value and the premium or discount is called the carrying value which is reported on the balance sheet.

Data and Calculations:

Face value = $550,000

Maturity period = 10 years

Interest on bonds = 3% annually

Issue value = 95

Price = $522,500 ($550,000 x 95%)

Discount = $27,500 ($550,000 x 522,500)

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Three Economic Concepts: Summary of your group discussion:

Economic Question(s) your Group Has About the Economic Sanctions against Russia:

summary of ur group discussion:​

Answers

Answer:

orange: scarcity, supply and demand, costs and benefits yellow: how do sanctions affect Russia's economy?, why are there sanctions in Russia?, who's or what's the cause of the sanction? blue: Russia could have issues with veto and passing laws. They had too much stuff to watch out for and needed more resources. Wanted to be smart with their decisions. (I tried my best sorry if I messed up somewhere forgive me :-;)

Explanation:

Market failure describes a situation in which the market itself ______________________ in a way that balances social costs and benefits. Group of answer choices fails to allocate resources efficiently remains outside the transaction avoids externalities incurs the costs outside the production process

Answers

When there is market failure, it means that the market itself fails to allocate resources efficiently between social costs and benefits.

What causes market failure?

Market failure happens when the market does not balance its social costs and benefits efficiently.

For instance, the costs might outweigh the benefits which leads to losses and so a market failure would occur.

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This investor started with $10,000 and ended up with $74,500 after 30 years, just

from the growth of that initial investment. Now, imagine they tried to use savings to

reach that same 30-year goal. If they start with $10,000, how much would they

need to save each year to have $74,500 after 30 years? Assume they don't earn

interest on savings.

would they need to save to have $74,500 after 30 years

Answers

Assuming that interest is not earned on savings, the annual saving to save  $74,500 with an initial capital of $10,000 is $2,150.

What is interest?

Interest refers to the finance charge or income that is added to a periodic saving.

The interest (simple or compounding) increases the amount of the funds at the end of its maturity period.

We can compute the compound interest using an online finance charge.

Data and Calculations:

Initial investment = $10,000

Investment balance after 30 years = $74,500

To save $74,500 with an initial capital of $10,000 without interest, the annual saving is $2,150 ($74,500 - $10,000)/30.

Thus, assuming that interest is not earned on savings, the annual saving to save  $74,500 with an initial capital of $10,000 is $2,150.

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According to public choice economists, the federal government has expanded because
A. the federal government is efficient in its spending.
B. deficit spending has reduced the perceived cost of current government operations.
C. taxpayers pay the full cost of current government operations.
D. the public likes to pay higher taxes to finance more programs.

Answers

Economists believe that the federal government has expanded because B. deficit spending has reduced the perceived cost of current government operations.

What do economists think of the federal expenditure?

They believe that because the government can finance more expenditure with debt, they have engaged in more expenses than they can actually afford.

This means that the government no longer views the cost of government operations as high because they can engage in deficit spending.

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________ is a factor that helps executives decide if there is a good financial incentive for attempting a technological innovation.

Answers

Economic viability is a factor that helps executives decide if there is a good financial incentive for attempting a technological innovation. Below is a further explanation.

What is an Economic viability?

Economic viability is an economic measure of the likely success of a particular action or set of actions on a particular product. An assessment of economic viability is an evaluation of the various economic effects that may result from the implementation of a particular project.

Therefore, the answer is economic viability.

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Nancy Appleton obtained a $45,000 loan for her start-up business. The SBA guaranteed 75% of the loan. How much has the bank risked losing if Nancy's business fails?

Answers

Based on the percentage that SBA guaranteed out of Nancy's loan, the bank stands to lose $11,250.

How much does the bank stand to lose?

The bank stands to lose the amount that wasn't guaranteed by the SBA in the event that Nancy Appleton's business fails.

This amount can be found as:

= Loan amount x ( 1 - percentage guaranteed)

Solving gives:

= 45,000 x ( 1 - 75%)

= $11,250

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Nita is a Market Research Analyst who has a retirement plan set up through her employer. Kurt is hired as a Retail Salesperson even though he doesn't have any experience in sales. Wendy is a Purchasing Manager with a bachelor's degree and three years of experience. Tyler works 15 hours per week as a Cashier. Nita is a Market Research Analyst who has a retirement plan set up through her employer. Kurt is hired as a Retail Salesperson even though he doesn't have any experience in sales. Wendy is a Purchasing Manager with a bachelor's degree and three years of experience. Tyler works 15 hours per week as a Cashier.

Answers

Answer:

job with benefits

entry-level job

advanced job

part-time job

Explanation:

i got them right :D.

Answer:

its job with benefit entry-level job  advanced job   part-time job

Explanation:

i got it right

For both academics and practitioners, the pendulum has swung over to the _______ for estimating the cost of equity capital.

Answers

For both academics and practitioners, pendulum has swung over to the capital asset pricing model for estimating the cost of equity capital.

What is capital asset pricing model?

The capital asset pricing model serves as model that show the financial markets price securities and thereby determine expected returns on capital investments.

Therefore, this model provides a way for estimating the cost of equity capital.

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A key aspect of participative leadership is ______. decreasing repetitive work creating an inclusive environment clarifying the path to the goal challenging workers to excel

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A key aspect of participative leadership is: A. decreasing repetitive work.

What is participative leadership?

Participative leadership can be defined as a form of leadership and management style that involves an invitation of all of the team members to join in the decision-making processes and proferring solutions to a problem.

Basically, a fundamental characteristic and key aspect of participative leadership is that it would help to decrease repetitive work in a business organization.

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The development of team roles arises from the ______ of the team, the organization, and the team members themselves. Multiple choice question.

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The development of team roles arises from the expectations of the team, the organization, and the team members themselves. .

What is a team?

A team serves as group of people that have a particular goal and they work together to achieve the aim of the organization.

However, team roles are the responsibility of each members which is expected from individuals in the team.

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Courts will not take action against a television show that critiques newly-released books for infringement of copyright because _____.

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criticism is protected by the fair-use doctrine

Caleb was a manager at a company that produced household appliances. He had many innovative ideas to increase profits. However, his ideas were not received well by the company. So, he left the company to pursue his own business, thus creating a(n)

Answers

Answer:

He created an entrepreneurial venture

Explanation:

Beverly, a real estate licensee, doesn’t represent either party to a specific real estate transaction. She merely helps the parties handle the paperwork. What role is Beverly taking in this transaction?

Answers

Beverly, a real estate licensee is taking up  the role of a transactional broker by not representing either party to a specific real estate transaction.

Who is a transactional broker?

A transaction broker is the one that provide third-party real estate services various buyers and sellers in exchange for a comission.

Here,  transactional broker is a neutral person to parties in a real estate transaction.

Hence, Beverly, a real estate licensee is taking up  the role of a transactional broker by not representing either party to a specific real estate transaction.

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What risk does Sarah run if she chooses a long-term care policy with a short benefit period of 2 years

Answers

The  risk that Sarah run if she chooses a long-term care policy with a short benefit period of 2 year is: d. Both a and c.

What is long-term care policy?

Long-term care policy can be defined as the type of policy that help to cover medical expenses or medical cost for a long period of time.

Choosing a long-term care that has a short health benefit has some risk  reason being that in a situation where she needs medical care beyond the stipulated two years , Sarah will have to pay for the cost of those medical care from her savings.

Inconclusion the  risk that Sarah run if she chooses a long-term care policy with a short benefit period of 2 year is: d. Both a and c.

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Vital records, such as birth and death certificates, are considered what type of information source?


Tertiary


Primary


Secondary

Answers

Answer:

Primary answer

Explanation:

What is the best business organization for annabeth’s new company? a corporation, because she will need financing to get started a sole proprietorship, because the business is small and simple to operate a partnership, because she lacks the skills to make machine parts a cooperative, because local businesses will be her customers

Answers

The statement that best describes the business organization for Annabeth’s new company is to a corporation, because she will need financing to get started.

What is corporation?

A corporation is an entity. It is usually defined as a collection of people or a company.

It has been permitted by the state to act as a single entity and is lawfully recognized as such for certain purposes.

Documents were utilised to found the first incorporated entities. The majority of governments now permit the formation of new corporations through the registration process.

The reason a Corporation would be preferable is that it would allow her to realize her long-term goals.

In the future, a corporation is more likely to expand, allowing Annabeth to realize her aspirations of selling to Europe and South America.

She does, in fact, have a better probability of doing so sooner rather than later.

Therefore, option a is correct.

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Burton Co. Requests assistance allocating costs and determining the profitability of its two departments: Skis and Snowboards. Shared indirect expenses include rent and supervision. Use the Tableau Dashboard, with information from Burton’s December 31 year-end reports, for our analysis.


Compute gross profit for each department. 2. Allocate rent expense to each department.



Required 1Required 2


Compute gross profit for each department.



Department Gross Profit


Skis


Snowboards




Allocate rent expense to each department.



Rent expense Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost


Department Numerator Denominator % of Total


Skis


Snowboards


Totals

Answers

Based on the sales and cost of goods sold for both departments of Burton Co., the gross profits are:

Skis - $58,000.Snowboards - $15,000.

The rent expenses can be allocated as:

Skis - $5,400.Snowboards - $2,400.

What are the departmental gross profits?

This can be found as:

= Sales - Gross profit

Ski department:                                                  Snowboards:

= 100,000 - 42,000                                            = 75,000 - 60,000

= $58,000                                                           = $15,000

What are the rental expenses?

The allocation base for the rent expenses is the square feet occupied by each department.

Ski department:

Allocation Base  Percent of base  Cost to be allocated   Allocated cost

14,000 feet²                70%                         $8,000                     $5,600

Snowboard department:

Allocation Base  Percent of base  Cost to be allocated   Allocated cost

6,000 feet²                30%                         $8,000                     $2,400

Percent of base for Ski department is:

= 14,000 / (14,000 + 6,000)

= 70%

Allocated cost is:

= 70% x 8,000

= $5,600

Percent of base for Snowboard department is:

= 6,000 / (14,000 + 6,000)

= 30%

Allocated cost is:

= 30% x 8,000

= $2,400

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Choose the product(s) that are most likely to be manufactured as a job, rather than as a job lot. (Check all that apply.) Multiple select question. Advertising circulars for a grocery store. Tailored wedding dress Customized home T-shirts for a local charity run

Answers

There are two types of manufacturings, Job lot and Sole Job.

The difference between two is that Job lot is suitable for those products which are homogeneous in nature.

The correct answers are:

Tailored Wedding dress and Customized home T-shirts for local charity run.

Job Lot :

This is a tyupe of manufacturing which is best suited for homogeneous produucts.

If the finished goods are identical then job lots is most beneficial as its saves ciost from bulk production.

Manufactured as Single job:

It is a type of manufacturing which is best suited where the output or finished goods required are customized and heterogeneous in nature.

The cost for this type of production is more that Job Lot.

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If you find that income significantly varies by age regardless of job experience, you have ______. a. an interaction effect b. both a main effect and an interaction effect c. a main effect for age d. a main effect for job experience

Answers

One have a main effect for age when income significantly varies by age regardless of the extent of job experience.

What is a main effect?

This means the effect of a single independent variable on the dependent variable while ignoring all other independent variables.

Hence, we have a main effect for age when income significantly varies by age regardless of the extent of job experience.

Therefore, the Option C is correct.

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Journalize these transactions for Sampson Co. If an amount box does not require an entry, leave it blank

Answers

The journal entries of these transactions for Sampson Co. using the perpetual inventory method are as follows:

Journal Entries:

Dec. 1: Debit Accounts Receivable (Batson Co.) $46,000

Credit Sales Revenue $46,000

Terms 2/15, net 45.

Debit Cost of Goods Sold $38,500

Credit Inventory $38,500

Dec. 6: Debit Cash $45,080

Debit Cash Discounts $920

Credit Accounts Receivable (Batson Co.) $46,000

Transaction Analysis:

Dec. 1: Accounts Receivable (Batson Co.) $46,000

Sales Revenue $46,000

Terms 2/15, net 45.

Cost of Goods Sold $38,500

Inventory $38,500

Dec. 6: Cash $45,080

Cash Discounts $920

Accounts Receivable (Batson Co.) $46,000

Question Completion:

Dec. 1 Sampson Co. sold merchandise to Batson Co. on account, of $46,000, terms 2/15, net 45.

The cost of the merchandise sold is $38,500.

Dec. 6 The Batson Co. paid the invoice within the discount period.

Sampson Co. uses the perpetual inventory method.

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According to the Reaching Beyond Our Borders box, one way German companies are remaining competitive in industrial jobs is Multiple Choice they rely solely on robotic technology and no longer use a human workforce. they implement apprenticeships to provide on-the-job education for young workers. they send all of their manufacturing work to China. they encourage students to leave school to take manufacturing jobs.

Answers

According to the information, it can be inferred that German companies are competitive because they implement apprenticeships to provide on-the-job education for young workers (option B)

What is on-the-job education?

On the job education is an educational method focused on improving the production processes and operation of a company. This method is implemented to increase the quality of all the processes required in the production chain of a company.

The on job education method is generally focused on young employees because they do not have previous experience. Additionally, they are offered education so that they can grow professionally and at the same time contribute better quality to the company.

Note: This question is incomplete because the graph is missing. However I can answer it based on my general knowledge.

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Being able to drive a car is an example of a skill.
Please select the best answer from the choices provided
True Or false

Answers

Answer:

true it is a skill to drive a car you have to learn to be able to drive

The answer is (True)

A local coffee shop is giving out free mini-size brewed coffee to entice consumers to come in the shop and try its products. The giveaways are called ______.

Answers

Answer:

Free Sample Marketing

Explanation:

This is the answer because when you give away free products it makes people want to buy it because it taste good or is good.

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