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Dennis_Churaev
1 month ago
5

Lasko's has 250,000 shares of stock outstanding, $400,000 in perpetual annual earnings, and a discount rate of 16 percent. The f

irm is considering a new project that has initial costs of $350,000 and annual perpetual cash flows of $60,000. How many new shares must be issued to fund the new project
Business
1 answer:
Mariulka [3.8K]1 month ago
8 0

Answer:

The extra shares needed total 1,314,975

Explanation:

Outstanding shares denote those that have already been distributed to the public, with the company receiving funds in return.

Current price per share = (Total value of shares ÷ Number of shares) ÷ Discount rate

Current price per share= (400,000 ÷ 250,000) ÷ 0.16

Current price per share= $10

Value of the firm for the project= Initial cost + {(Value of outstanding stock + Annual Perpetual cash flow) ÷ Discount rate}

Value of firm with project= -350,000 + {(400,000 + 60,000) ÷ 0.16}

Value of firm with project= $2,525,000

New price per share= 2,525,000 ÷ 250,000= $10.10

Extra amount needed for project= 2,525,000 - 400,000= 2,152,000

Extra shares required= (2,152,000 ÷ $10.10) ÷ 0.16

Extra shares required= 1,314,975

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Both Amy and Brad produce and consume apple pie and ice cream. In one hour, Brad makes five apple pies or ten gallons of ice cre
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Réponse:

Amy possède un avantage absolu dans la production de tartes aux pommes et de glaces.

Amy a un avantage comparatif dans la production de tartes aux pommes.

Brad a un avantage comparatif dans la production de glaces.

Amy devrait se spécialiser dans la production de tartes aux pommes, tandis que Brad devrait se focaliser sur la production de glaces.

Explication:

Une personne a un avantage comparatif dans un domaine si elle produit à un coût d'opportunité inférieur par rapport à d'autres individus.

Coût d'opportunité de Brad:

Pour produire une tarte aux pommes = 10 / 5 = 2

Pour produire une glace: 5 / 10 = 0.5

Coût d'opportunité d'Amy:

Pour produire une tarte aux pommes: 15/15 = 1

Pour produire des glaces: 15/15 = 1

Amy a le coût d'opportunité le plus bas comparé à Brad pour la production de tartes aux pommes. Ainsi, elle détient un avantage comparatif dans ce domaine.

Brad présente un coût d'opportunité inférieur à celui d'Amy pour la production de glaces. Il possède donc un avantage comparatif dans la production de glaces.

Une personne doit se spécialiser et échanger le produit pour lequel elle a un avantage comparatif.

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Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 345,000 Beginning m
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Answer:

See the instructions below.

Explanation:

Here is the provided information:

Q= 1,000 units sold

Sales amounting to $ 345,000

Starting merchandise inventory at $ 23,000

Total purchases of $ 230,000

Ending merchandise inventory valued at $ 11,500

Fixed selling expense is $?

Fixed administrative expense totals $ 13,800

Variable selling expense is $ 17,250

Variable administrative expense is $?

Contribution margin stands at $ 69,000

Net operating income equals $ 20,700

Cost of goods sold (COGS) is calculated as: beginning inventory + purchases - ending inventory = 23000 + 230000 - 11500 = $241,500

1) Total revenue is 345000

COGS amounts to 241500

Variable selling expense equals 17250

Variable administrative expense=? =17250 (345000 - 241500 - 17250 - 69000)

The contribution margin is 69000

Fixed selling expense=? = 34500 (69000 - 13800 - 20700)

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Net income is 20,700

2) Sales total 345,000

COGS reaches 241500

Gross profit comes to 103500

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Selling expense is 51750

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5) Contribution margin per unit calculation: 69000/1000= 69

6) The contribution format income statement is advantageous as it clearly illustrates how each unit influences the contribution margin.

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