What is the share price

Assignment Help Finance Basics
Reference no: EM132769706

James is a skiing company in the Isle of man. It has 80 million shares outstanding with a market price of £32 per share and no debt. James has had consistently stable earnings and pays a 25% tax rate. Management plans to borrow €1 billion on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares. Disregard any costs of financial distress for this question, i.e., you can consider they are always zero.

What is the share price, number of shares outstanding, market value of equity, market value of debt and the enterprise value after the announcement of the recapitalization, but before the company issues debt?

Reference no: EM132769706

Questions Cloud

Find the capital balance of shrek after the retirement : P50,000 cash in full settlement of his interest in the partnership. Determine the capital balance of Shrek after the retirement of Donkey assuming the bonus
What is the share price, number of shares outstanding : What is the share price, number of shares outstanding, market value of equity, the market value of debt and the enterprise value after the announcement of the r
HIPPA requirements for hospital networks : Do some Internet research on the security implications of HIPPA requirements for hospital networks.
How much from the paid will be received by lorie ann : Lorie Ann and Bernadette conform to their profit and loss ratio after the admission of Rose, how much from the P30,000 paid will be received by Lorie Ann?
What is the share price : What is the share price, number of shares outstanding, market value of equity, market value of debt and the enterprise value after the announcement of the recap
Find vivian capital account should be credited for : The partnership, named as LOVE Unlimited, elected to use the bonus method to record the admission of Vivian. Vivian's capital account should be credited for?
What can a firm do to mitigate the conflict of interests : What can a firm do to mitigate the conflict of interests between debt-holders and equity- holders. Discuss in detail.
What lala acquisition of second-hand furniture will result : Lala's acquisition of the second-hand furniture will result in the increase or reduction in the capital of the remaining partners in the amount of?
Why do some investments increase market value : Why do some investments increase market value, while others reduce it? Explain what the investment trade-off is.

Reviews

Write a Review

Finance Basics Questions & Answers

  What must be the stock beta

A stock has expected return of 12.0 percent, the risk free rate is 3.00 percent, and the market risk premium 4.00.

  What will the nav of this fund be at the end of the year

If you had invested $50,000 in this fund at the start of the year, how many shares would you own at the end of the year? What will the NAV of this fund be at the end of the year? Why?

  Taking adequate amounts of vacation time

taking adequate amounts of vacation time

  How much money will be in the account after three years

Suppose you deposit $545.00 today, $731.00 in one year, and $436.00 in two years in an account that pays an annual rate of interest of 18.01%.

  Conclusions about the company trends

Pick a company, calculate and report the percentage increase or decrease in stock price - AKA rate of return.

  What role does it play in the economy

What role does it play in the economy? Why is delivery important if so few futures contracts end in delivery? What are the major functions of derivative markets in an economy? Why is speculation controversial? How does it differ from gambling?

  The balance sheet

Which of the following statements is not true regarding the three major definitions of accounting liabilities that have evolved over time?

  What is the value of your all-equity firm

Your all-equity firm has a 60 percent chance of producing expected cash flows of $7.0M in perpetuity and a 40 percent chance of producing expected cash flows of $14.50M in perpetuity. These cash flows are unrelated to the state of the economy ..

  Cost of equity after the repurchase

The firm is planning to issue $840,000 of debt at 5.8 percent interest and use the proceeds to repurchase shares at their current market value.

  Estimate the current price or value per share

Calculate/estimate the current price or value per share of this stock if its equity cost of capital or required return is r=10% per year

  How to start transitioning to less risky investments

Relatives are asking you for financial advice on their investments. They are curious about bonds. Aunt Mary (age 65) is interested in the U.S. Treasury market.

  Business analysis of general motors

My assignment is a business analysis of General Motors Corp(present day/after bankruptcy) What are some best practices to adopt going forward for this company.

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