subject
Business, 27.05.2020 21:08 laylahedwards

Theo currently owns 700 shares of JKL, which is an all-equity firm with 320,000 shares of stock outstanding at a market price of $25 a share. The company's earnings before interest and taxes are $160,000. JKL has decided to issue $500,000 of debt at 7.5 percent interest and use the proceeds to repurchase shares of stock. How many shares of JKL stock must Theo sell to unlever his position if he can loan out funds at 7.5 percent interest

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 14:30
Abc computer company has a $20 million factory in silicon valley in which in builds computer components. during the current year, abc's costs are labor (wages) of $1.01.0 million; interest on debt of $0.20.2 million; and taxes of $0.20.2 million. abc sells all its output to xyz supercomputer for $2.62.6 million. using abc's components, xyz builds four supercomputers at a cost of $0.8500.850 million each, which comes from $0.6500.650 million worth of components, $0.10.1 million in labor costs, and $0.10.1 million in taxes per computer. xyz has a $30 million factory. xyz sells three of the supercomputers to other businesses for $1.81.8 million each. at year's end, it had not sold the fourth. the unsold computer is carried on xyz's books as a $0.8500.850 million increase in inventory.
Answers: 1
question
Business, 21.06.2019 19:20
Which job role belongs in the middle management level? a. president b. chief executive officer c. department manager d. chief operating officer e. vice president
Answers: 1
question
Business, 22.06.2019 05:40
According to the philosopher immanuel kant, the right of employees to know the nature of the job they are being hired to do and the obligation of a company not to deceive them in this respect is mainly reflective of the basic right of . privac yb. free consentc. freedom of speechd. freedom of consciencee. first refusal
Answers: 1
question
Business, 22.06.2019 05:50
Emily spent her summer vacation in buenos aires, argentina, where she got plastic surgery for a fraction of what it would cost in the united states. this is an example of:
Answers: 2
You know the right answer?
Theo currently owns 700 shares of JKL, which is an all-equity firm with 320,000 shares of stock outs...
Questions
question
Mathematics, 02.12.2020 01:00
question
Mathematics, 02.12.2020 01:00
question
Mathematics, 02.12.2020 01:00
Questions on the website: 13722363