Determine what is the new price per share of a firm

Assignment Help Financial Econometrics
Reference no: EM13334505

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?

Reference no: EM13334505

Questions Cloud

How to state the decision rule for a significance level : Research in the gaming industry showed that 11% of all slot machines in the United States stop working each year. Short's Game Arcade has 60 slot machines and only 2 failed last year.
Technology of communications is important : Although the technology of communications is important, what are human factors that also come into play when communicating in a virtual environment? Name some human factors and then provide examples?
Compute the magnification of the microscope : A compound microscope in which the objective and eyepiece are 30.2 cm apart uses an objective lens with fobj = 1.0 cm, What is the magnification of the microscope
Change the hiring process for businesses : W2/DQ2 Chapter 3 of Electronic Commerce 2008 discusses the new electronic job market. How does this change the hiring process for businesses?
Determine what is the new price per share of a firm : 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
The federal government announced a tax rebate : The Federal Government announced a tax rebate of $500 for all  individuals filing singly
How much money will be invested in stock x and stock y : Your choices are Stock X with an expected return of 11 percent and Stock Y with an expected return of 9.0 percent. If your goal is to create a portfolio with an expected return of 10.42 percent
What is the interest for one month at an 20 percent apr : sidney took a 775 cash advance by using checks linked to her credit card account. The bank charges a 3 percent cash advance fee on the amount borrowed and offers no grace period on cash advances.
How can this deficiency be addressed : How can this deficiency be addressed? What suggestions would you offer to make more users security competent?

Reviews

Write a Review

 

Financial Econometrics Questions & Answers

  Construct the balance sheet for gcp at the close of business

Construct the balance sheet for GCP at the close of business on Day 31. Remember, the employee's salaries will have been paid at the beginnings of the day for the previous 15 days of salaries they have worked

  What will clubs stock price be at the end of the first year

Genuine Producs Inc. requires a new machine. Two companies have submitted bids, and you have been assigned the task of choosing one machine.

  What price do you forecast for the stock one year from now

Horse and Buggy Inc. is in a declining industry. Sales, earnings, and dividends are all shrinking at a rate of 5% per year. a. If r = 20% and DIV1 = $6, what is the price of a share

  Prepare entries for the purchase and two subsequent payments

The remainder was paid within the 30-day term. At the end of the annual accounting period, December 31, 2010, 90% of the merchandise had been sold and 10% remained in inventory. The company uses a periodic system.

  Find the values of x and y that maximize the firms revenue

If the company buys x minutes of television advertising and y minutes of radio advertising, its revenue in thousands of dollars is given by: f(x,y) = -2x^2 - y^2 + xy + 8x + 3y

  Find the total amount of the yearly payments

A company borrows $150000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay yearly interest payments at the nominal annual rate of 6% compounded yearly.

  Determine what is the npv of the diet scotch project

The McGregor Whisky Company is proposing to market diet scotch. The product will first be test-marketed for two years in southern California at an initial cost of $610,000.

  What is amount the firm should use as the initial cash flow

Mind Blowers, Inc. has a new project in mind that will increase accounts receivable by $28,000, decrease accounts payable by $6,000, increase fixed assets by $36,000, and decrease inventory by $11,000.

  Determine the required return on a stock with a beta

Russo's Gas Distributor, Inc. wants to determine the required return on a stock with a beta coefficient of 0.5. Assuming the risk free rate of 6 percent and the market return of 12 percent, compute the required rate of return.

  Determine what coupon rate should aj pharmaceuticals set

AJ Pharmaceuticals would like to issue 20-year bonds to obtain the remaining funds for the new, Mexico plant. The company currently has 6.5% semiannual coupon bonds in the market that sell for $1,040 and mature in 20 years.

  Find what must the coupon rate be on mertons bonds

Merton Enterprises has bonds on the market making annual payments, with 14 years to maturity, and selling for $972. At this price, the bonds yield 8.4 percent.

  Determine how much of the second loan payment is interest

wesson metals has an outstanding loan that calls for equal annual payments of $9,768.46 over the life of the loan. the original loan amount was $50,000 at an apr of 8.5 percent

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd