answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kumpel [21]
1 year ago
4

Rockwood Industries has 100 million shares outstanding, a current share price of $25, and no debt. Rockwood's management believe

s that the shares are under-priced, and that the true value is $30 per share. Rockwood plans to pay $250 million in cash to its shareholders by repurchasing shares. Management expects that very soon new information will come out that will cause investors to revise their opinion of the firm and agree with Rockwood's assessment of the firm's true value. Assume that Rockwood is not able to repurchase shares prior to the market becoming aware of the new information regarding Rockwood's true value. If Rockwood repurchases the shares following the release of the new information, then the number of shares outstanding following the repurchase is closest to:_______
A. $30.00
B. $31.50
C. 28.75
D. $30.60
Business
1 answer:
Nikolay [14]1 year ago
6 0

Answer:

D. $30.60

Explanation:

A step by step approach is provided below to determine the shares value after repurchase.

Number of Shares Repurchased = $250 million / $25 per share

Number of Shares Repurchased = 10 million shares

The total number of shares outstanding after repurchase are 90 Million (100 million - 10 million).

Value of the firm before repurchase = $30 x 100 million shares = $3,000 million

Value of the firm after repurchase = $3,000 million - $250 million = $2,750 million

Price per share after repurchase = $2,750 million / 90 million shares = $30.56 per share

You might be interested in
According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps
Rasek [7]

Answer:

<u>A) Presence</u>

Explanation:

A brand is simply an identifying mark of a particular product manufactured by particular company.

The BRANDZ MODEL developed by Millward Brown and WPP looked at how brand building connects with customer issues.

By knowing how long a product brand has been in existence people can the question what do I know about it?

4 0
2 years ago
Suggest some metrics that a manager of a fast-food restaurant, such as McDonald's or Chipotle, might want to collect. Describe h
Kaylis [27]
Customer wait times: A manager may use these analytics to determine points of friction with operations, implement systems to reduce time, develop employee expectations, and ultimately enhance right-on-time service to their customers.
5 0
2 years ago
Which employers include not only private companies and nonprofit organizations, but also hospitals, department stores, and car m
pogonyaev
I wanna say d would be the answer but it could also be banking services

7 0
2 years ago
Read 2 more answers
Using the world bank index how many us dollars would buy the same amount of rupees as 862800
Strike441 [17]

With the current exchange rate provided by the word bank, 1 US dollar would be the equivalent of 64.43 Indian Rupees or INR. By knowing this exchange rate, you can simply divide the given amount which is 862,800 Indian Rupees by 64.43 INR. After dividing the two amounts, you will probably have 13,391.28 as your answer. There are a lot of ways in the digital age to convert currencies right now. However, when you exchange your money in exchange centers,do not expect to have the same amount you just calculated since you will be paying for a few taxes and service fees.

5 0
2 years ago
You have two choices for how you are going to spend Saturday evening. You can go to the pub with your friends, which will cost y
icang [17]

Answer:

b. The economic cost of going to the pub is £40.

Explanation:

The correct option is - b. The economic cost of going to the pub is £40.

Reason -

Economic cost = Cost actually incurred to choose an option + opportunity cost

Now,

We know that

Opportunity cost is the value of next best alternative forgone.

Now,

Net benefits while the person going to Pub = 50 - 30 = £20

Net benefits while the person going to Theatre = 60 - 50 = £10

So,

The opportunity cost = £20 - £10 = £10

∴ we get

Economic cost of going to the Pub= £30 + £10 = £40

3 0
2 years ago
Other questions:
  • Increasing the promotional budget for a product in order to increase awareness is not advisable in the short run under which of
    15·2 answers
  • The government has imposed a fine on jj’s place. the fine calls for annual payments of $60,000, $70,000, $75,000, and $50,000, r
    13·1 answer
  • Frederick is about to start a small manufacturing business soon. He has asked some of his friends, who are entrepreneurs, for ad
    13·2 answers
  • At the beginning of the year, Uptown Athletic had an inventory of $640000. During the year, the company purchased goods costing
    10·1 answer
  • If the distribution of water is a natural monopoly, then (i) multiple firms would likely each have to pay large fixed costs to d
    6·1 answer
  • Several years ago, Grant County was sued by a former County employee for wrongful discharge. Although it was to be contested by
    5·1 answer
  • Ryan Co. sells major household appliance service contracts for cash. The service contracts are for a 1-year, 2-year, or 3-year p
    10·1 answer
  • Tate Company purchased equipment on November 1, 2020 and gave a 3-month, 9% note with a face value of $120,000. Tate’s year-end
    10·1 answer
  • Lisa is the CEO of a corporation. As such, she is authorized to make daily operating decisions for
    9·1 answer
  • The project manager of a task force planning the construction of a domed stadium had hoped to be able to complete construction p
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!