subject
Business, 04.12.2019 01:31 freemankellie

Schwartz industry is an industrial company with 100 million shares outstanding and a market capitalization (equity value) of $4 billion. it has $2 billion of debt outstanding. management have decided to delever the firm by issuing new equity to repay all outstanding debt.

a) how many new shares must the firm issue?

b1) suppose you are a shareholder holding 100 shares, and you disagree with this decision. assuming a perfect capital market, how much should you borrow to hold the same amount of levered equity?

b2) how many new shares should you buy?

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 07:30
Hours to produce one unit worker hours to produce yarn country a 8 hours country b 4 hours worker hours to produce fabric counrty a 12 hours country b 13 hours additional worker hours to produce fabric instead of yarn country a ? country b? which of the follow is true of the trade relationship between country a and country b? country a has an absolute advantage in producing yarn and fabric country b has an absolute advantage in producing yarn and fabric country b has a comparative advantage to country a in producing fabric country a has a comparative advantage to country b in producing fabric
Answers: 2
question
Business, 22.06.2019 08:00
Lavage rapide is a canadian company that owns and operates a large automatic car wash facility near montreal. the following table provides data concerning the company’s costs: fixed cost per month cost per car washed cleaning supplies $ 0.70 electricity $ 1,400 $ 0.07 maintenance $ 0.15 wages and salaries $ 4,900 $ 0.30 depreciation $ 8,300 rent $ 1,900 administrative expenses $ 1,400 $ 0.03 for example, electricity costs are $1,400 per month plus $0.07 per car washed. the company expects to wash 8,000 cars in august and to collect an average of $6.50 per car washed. the actual operating results for august appear below. lavage rapide income statement for the month ended august 31 actual cars washed 8,100 revenue $ 54,100 expenses: cleaning supplies 6,100 electricity 1,930 maintenance 1,440 wages and salaries 7,660 depreciation 8,300 rent 2,100 administrative expenses 1,540 total expense 29,070 net operating income $ 25,030 required: calculate the company's revenue and spending variances for august.
Answers: 3
question
Business, 22.06.2019 17:00
Can someone me ? i’ll mark the best answer brainliest : )
Answers: 1
question
Business, 22.06.2019 19:50
Our uncle has $300,000 invested at 7.5%, and he now wants to retire. he wants to withdraw $35,000 at the end of each year, starting at the end of this year. he also wants to have $25,000 left to give you when he ceases to withdraw funds from the account. for how many years can he make the $35,000 withdrawals and still have $25,000 left in the end? a. 14.21b. 14.96c. 15.71d. 16.49e. 17.32
Answers: 1
You know the right answer?
Schwartz industry is an industrial company with 100 million shares outstanding and a market capitali...
Questions
question
Mathematics, 14.05.2021 17:10
question
Mathematics, 14.05.2021 17:10
question
Mathematics, 14.05.2021 17:10
question
Mathematics, 14.05.2021 17:10
Questions on the website: 13722361