What is the firm value of operations

Assignment Help Financial Accounting
Reference no: EM132880965

A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt.

Required:

Problem 1: What is the firm's value of operations, and how many shares will remain after the repurchase?

Reference no: EM132880965

Questions Cloud

Explain the transfer of the training process : In your opinion, how to gain manager's support for training to ensure all the trainee can transfer the training.
Analyze the jd of an operations manager : Please find below the JD of Operations Manager. Analyze the JD of an Operations Manager and see if this is good to go on a job portal or suggest some improvemen
Prepare general journal entries to record the purchased : Prepare general journal entries to record purchased and retired 500 common shares at $23 per share. Blue Jean Corporation originally issued its 5,000 common
Preparing for an online-virtual interview : 1) In preparing for an online/virtual interview, you should
What is the firm value of operations : The firm has no other financial investments or any debt. What is the firm's value of operations, and how many shares will remain after the repurchase?
Compare and contrast implications of age : Compare and contrast implications of age/generation in the United States and one other country, and discuss ways to increase mutual understanding, build trust,
Fundamental differences between tough and soft negotiators : -What are the fundamental differences between tough and soft negotiators, and what are the disadvantages of adopting either stance?
Relate the concept of the replication to the replicases : Even with subtle comments, an appraiser is presented with a dilemma. While in the short-term, a simple change in the assumptions could make their client happy,
Describe the different types of instructional : 1. Describe the different types of instructional characteristics that this program should have for learning and transfer to occur resulting in a decrease in inj

Reviews

Write a Review

Financial Accounting Questions & Answers

  FNSACC504 Prepare Financial Reports for Corporate Entities

FNSACC504 Prepare Financial Reports for Corporate Entities Assignment Help and Solutions-Australian Harbour International College, Australia- FNS50215.

  Interested in entering the catfish farming business

Lance is interested in entering the catfish farming business. He estimates if he enters this business, his fixed costs would be $50,000 per year and his variable costs would equal 30 percent of sales. If each catfish sells for $2, how many catfish wo..

  Pace corporation acquired f spin companys common stock

Pace Corporation acquired 100 percent of Spin Company's common stock on January 1, 20X9. Balance sheet data for the two companies immediately

  Difference between

difference between authorized-issued-and outstanding shares

  Find what total legal capital including shares subscribed

Compute What is book value per share of the common stock, assuming that no dividends in arrears. What is the total legal capital, including shares subscribed?

  What is definition of floor planning in finance terms

What is definition of floor planning in finance terms? Also assist in listing the advantages and disadvantages of floorplanning as a finance option?

  Determine the standard cost per dress for direct materials

Determine (a) the standard cost per dress for direct materials and ,direct labor; (b) the priceVariance, quantit ariance, and total direct matd4als cost variance; and (c) the rate \ypi, fiance, time' v, lance, and total dire,Sbor cost variance.

  What taha would have

Prior to the stock split, Taha had 1,000,000 shares of common stock outstanding and the par value was $0.20 per share. After the stock split, Taha would have

  Calculate how the price changed six months later after issue

Suppose that in December 2009 Greece issued a 10-year bond paying a 4% coupon semi-annually. Calculate how the price changed six months later after issue

  Internal auditors of development technologies

In 2013, the internal auditors of Development Technologies, Inc., discovered that (a) 2012 accrued wages of $2 million were not recognized until they were paid in 2013 and (b) A $3 million purchase of merchandise in 2013 was recorded in 2012 instead...

  Find which statement in relation to refinancing of liability

Find Which statements in relation to refinancing or rescheduling of liability is true? A liability which is due to be settled w/n 12 mos.

  Prepare the journal entry to record the issuance

Show how the bonds would be reported on the balance sheet at the date of issuance.

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