The current market value of the assets of ABCD is $86.28 million. The call option value on the firm's assets is $53.09 million. What is the market value of the firm's debt

Answers

Answer 1

Answer: $33.19 million

Explanation:

From the question, we are informed that the current market value of the assets of ABCD is $86.28 million and that the call option value on the firm's assets is $53.09 million.

The market value of the firm's debt will be the difference between the market value of assets and the call option value of the firm's assets. This will be:

= $86.28m - $53.09m

= $33.19 million


Related Questions

Neither Kenji nor Lucia has an incentive to increase output further, nor does either have an incentive to decrease output. This outcome is an example of:__________

Answers

Answer:

Nash equilibrium

Explanation:

The nash equilibrium is the equilibrium that deals in the game theory in which there is an optimal result of a game where no player has the incentive to deviate from the selected strategy after the party choice i.e. oppose

Therefore as per the given situation, the nash equilibrium is to be considered as an answer

hence, the same is to be considered

What is marketing myopia? What is short term and long term implications for business in this situation?

Answers

Answer:

you could easily look that up

Explanation:

Cromwell's Interiors is considering a project that is equally as risky as the firm's current operations.The firm has a cost of equity of 15.4 percent and a pretax cost of debt of 8.9 percent.The debt-equity ratio is .46 and the tax rate is 34 percent.What is the cost of capital for this project?A) 11.97 percentB) 12.40 percentC) 11.02 percentD) 11.62 percentE) 12.38 percent

Answers

Answer:

Cost of capital = 12.40% (Approx)

Explanation:

Given:

Cost of equity =  15.4%

Pretax cost of debt = 8.9%

Debt-equity ratio = 0.46

Tax rate = 34%

Computation:

Equity multiplier = 1 + Debt-equity ratio

Equity multiplier = 1 + 0.46

Equity multiplier = 1.46

Weight of equity = 1 / Equity multiplier

Weight of equity = 1 / 1.46

Weight of equity = 0.685

Weight of Debt = 1 - Weight of equity

Weight of Debt = 1 - 0.685

Weight of Debt = 0.315

Cost of capital = [Weight of Debt x Pretax cost of debt] x (1-tax rate) + [Cost of equity x Weight of Debt ]

Cost of capital = [0.315 x 8.9% x (1-0.34)] + [15.4% x 0.6849]

Cost of capital = 12.40% (Approx)

8. What was the result of John overdrawing his checking account?

Answers

Based on John overdrawing his checking account, John’s payment was greater than the balance he had available in his account so he was charged a $35 fee.

What happens when an account is overdrawn?

From the statement of John's account given, we can see that John made a payment of $710.49 that was more than he had in the account.

As a result, he overdrew his account and took it to a negative balance. He will therefore have to pay an overdraft fee of $35.

Options for this question are:

John’s payment was greater than the balance he had available in his account so the bank will deposit $237.81 into John’s account so he can pay his bills.John’s payment was greater than the balance he had available in his account so he was charged a $35 fee.John’s payment was greater than the balance he had available in his account so he was charged a $5 monthly maintenance fee.John’s payment was greater than the balance he had available in his account so the bank will transfer $35 from a linked account.

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Do some research on mergers and acquisitions. What were the five largest mergers– acquisitions last year? Make a list of the partners in each. What reasons were given for the merger–acquisition? Do you think these mergers–acquisitions made strategic sense? Explain.

Answers

Answer:

Mergers and Acquisitions in 2019:

1. The five largest mergers-acquisitions in 2019:

   Acquirer   and  Partner

a. BB&T and SunTrust

b. Schwab and TD Ameritrade

c. Raythem and UTC

d. Newmont and Goldcorp

e. Salesforce and Tableau Software

2. Reasons for the M&A:

a. BB&T and SunTrust                        - to cut cost

b. Schwab and TD Ameritrade          - to save money

c. Raythem and UTC                        - to become largest defence company

d. Newmont and Goldcorp               - to acquire competitive advantage

e. Salesforce and Tableau Software - to boost revenue

3. Some of the M&A transactions do not make any strategic sense.  For example, now that Raythem and UTC combined want to form the largest defense company, do they add much to their stockholders returns?  Some others acquired to cut cost will experience the huge costs of acquisition, which are, most times, too large to be written off in a single year.

Explanation:

Major financial transactions done at the corporate level for the purpose of consolidating the assets of two or more companies, growing market share, and eliminating competition are called Mergers and Acquisitions (M&A).  Consolidation of companies may be achieved through mergers, acquisitions, assets purchase, management acquisitions, etc.

Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted sales data for the company: January February March April Total sales $50,000 $60,000 $40,000 $30,000 What is the amount of cash that should be collected in March

Answers

Answer:

The amount of cash collected in March should be:

$51,000.

Explanation:

a) Data and Calculations:

Budgeted sales and Cash Collections:

                                           January    February       March         April

Total sales                         $50,000    $60,000     $40,000    $30,000

Collections:

35% month of sales             17,500       21,000         14,000       10,500

45% month following                            22,500        27,000       18,000

20% second month                                                    10,000

Total collections in March                                       $51,000

b) The above calculations concentrated on the month of March, being the month of interest.  Though, sales on account totals $40,000, the cash collections for the month amounts to $51,000.  This arises from cash collections from the months of January and February.

Knowledge management is very important on agile projects. At the end of every two-week to four-week iteration, a ceremony (meeting) called a ______ is held to determine what worked well and what can be improved. a. Stand-up meeting b. Show and tell c. Retrospective d. Backlog review

Answers

Answer:

d. Backlog review

Explanation:

Since in the question it is mentioned that the knowledge managemengt plays a vital role in the agile projects and at the end of every two to four weeks, there is a ceremony called a back log review in which it measures which function worked well and which can be improved

Here the backlog review means the list of the items which the team has to work. In this, the work should be done based on the existing work done and if there is any bug than it should be fixed. It could be applied while devloping a product all over the cycle

Therefore option d is correct

Corporation's net cash provided by operating activities was $115; its net income was $95; its capital expenditures were $65; and its cash dividends were $17. The company's free cash flow was:__________.
A. $292
B. $13
C. $33
D. $31

Answers

Answer:

C. $33

Explanation:

Free cash flow is calculated as;

= Net cash provided by operating activities - Cash used for capital expenditure - Cash dividend

Given that;

Net cash provided by operating activities = $115

Cash used for capital expenditures = $65

Cash dividend = $17

The company's free operating cash flow;

= $115 - $65 - $17

= $33

On January 1, 2020, Solugenix issued $400,000 of 7.125 percent Senior Notes due January 1, 2030, at par value. Interest on the notes is payable semiannually. At December 31, 2021, the bonds traded at 105. If the company were to repurchase the remaining notes on December 31, Year 2021, what would be the gain or loss on the repurchase

Answers

Answer:

$20,000 loss

Explanation:

Repurchase of bond = Repurchase price - Carrying value

Repurchase of bond = ($400,000*105%) - $400,000

Repurchase of bond = $420,000 - $400,000

Repurchase of bond = $20,000 loss

Thus, the loss on the repurchase of the bond is $20,000

Briefly explain why the data Brainard cites indicate that the Phillips curve is relatively flat.

Answers

Answer:

C. The flatter the Phillips​ curve, the less the inflation rate will​ rise, and the inflation rate has not risen much.

Explanation:

The following information is

There is a decline in the unemployment rate from 8.2% to 4.4%

The main inflation would be undershot 2 percent for 58 months

Based on the above information

The reason behind the Phillips curve be flat is that the lower rate of inflation would increased also the rate of inflation would not increased much as it should be increased

Therefore the option C is to be selected

random question, but i’ve been getting a few of my amazon packages stolen lately, so i’ve been requesting for replacements. today i got a package stolen from my porch, but i’m nervous that amazon will ban my account since i’ve already asked for replacements 5-6 times this year. last time i asked for a replacement was about 2 ish weeks ago. i’ve read online that people have gotten banned from amazon for returning things often. i haven’t been returning anything and instead asking for replacements or sometimes just a refund, but do you guys think amazon will end up banning me if i ask for a refund?

Answers

You can contact the customer service I think they can help you

Machinery for an assembly line has a cost basis of $150,000 and an expected salvage of $25,000. It is not subject to special limitations for bonus depreci- ation. How much bonus depreciation was, is, or will be allowed
(a) in 2014?
(b) in 2018?
(c) in 2024?
(d) in 2026?

Answers

Answer:

Following are the solution to the given choices:

Explanation:

The Depreciation value:

[tex]\to \$ 150,000 - \$ 25,000\\\\\to \$ 125,000[/tex]

Calculating the bonus Depreciation value:

In point a:

for 2014 [tex]\Rightarrow \$125,000 \times 50 \% = \$125,000 \times \frac{50}{100}= \$62,500\\\\[/tex]

In point b:

for 2018 [tex]\Rightarrow \$125,000 \times 50 \% = \$125,000 \times \frac{50}{100}= \$62,500\\\\[/tex]

In point c:

for 2024

In point d:

for 2024 [tex]\Rightarrow \$125,000 \times 20 \% = \$125,000 \times \frac{20}{100}= \$25,000 \\\\[/tex]

The short-run aggregate supply curve implies that real output exceeds its long-run level when the price level is:

Answers

Answer:

greater than the expected price level

Explanation:

The short run aggregate supply curve shows graphically that the real output is more than its long run level when the price level is more than expected price level. When there is great expectation about inflation it shifts the short run Aggregate Supply curve outwards or to the right. Price level would then rise in the long run but real output would stay the same or unchanged.

When the price is greater than the expected price level a short run aggregate supply is implicated by the curve. In the short term the prices will go higher as in the longer run better tools can be employed for sales.

Sales will be much faster as compared to when the prices were lower as supply in the market is enough to meet the short term needs of the market only.

The short term aggregate supply leads to higher, faster and effortlessly easier sales. In this practice man hours available are increased and over utilized in the short term and hence the prices are increased.

The more time employed by workers will compensate positively as goods will be sold at higher prices. The capital, manpower, labor, building and employers are increased as a result of increased sales.

As the sources are significantly increased the quantity/units or the number of goods produced in the short term also increases ultimately and significantly.

Hence, the short term aggregate supply is implies that the real output is exceeded as compared to its long term level when the prices are greater than the expected price levels in the long run.

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Consider the following information for a period of years: Arithmetic Mean Long-term government bonds 7.1 % Long-term corporate bonds 7.2 Inflation 4.2 a. What is the real return on long-term government bonds

Answers

Answer:

A. 2.79%

B. 2.88%

Explanation:

A. Calculation for What is the real return on long-term government bonds

Real Return of Long-term government bonds = (1.071/1.042) - 1

Real Return of Long-term government bonds = 1.0279-1

Real Return of Long-term government bonds = =2.79%

B. Calculation Real Return of Long-term corporate bonds

Real Return of Long-term corporate bonds

= (1.072/1.042) - 1

Real Return of Long-term corporate bonds=1.0288-1

Real Return of Long-term corporate bonds = 2.88%

You work for a company where the HR director has been involved in unethical activities. You know that others are also aware of the situation; however, no one is willing to report the director's behavior to upper management. You do not want to be the whistleblower3; however, you realize that guilt and loss of self-respect can result when you do or do not do things that conflict with what you believe. Discuss this situation with two or three classmates. Identify pros and cons of becoming a whistleblower.

Answers

Answer:

Personal Pros & Cons

Explanation:

To become a whistleblower in this situation, you might want to stay anonymous when reporting the situation. By staying anonymous you can report this situation without being worried that this HR director will know. But, if you don't want to become the whistleblower someone else might report them and you'll be out scot-free. But in the chance, someone doesn't, then you might feel guilty for not reporting this issue.

In line with the vast demand of its bonds in the EU capital markets, the Chevron Oil
Company issued 10% bonds of $100,000 for five years in Paris Capital Market and sell
for $102,000. The market interest rate is 10%. The cost of borrowing to Chevron
Company is:
Select one:
a. 48,000
b. None of the above
c. 40,000
d. 50,000​

Answers

I think it would be 48,000

List three pieces of information listed in a credit card agreement that you believe are important to review before

Answers

Explanation:

Annual Percentage Rate (APR). This is the cost of borrowing on the card, if you don’t pay the whole balance off each month. You can compare the APR for different cards which will help you to choose the cheapest. You should also compare other things about the cards, for example, fees, charges and incentives

Minimum repayment. If you don’t pay off the balance each month, you will be asked to repay a minimum amount. This is typically around 3% of the balance due.

Annual fee. Some cards charge a fee each year for use of the card. The fee is added to the amount due and you will have to pay interest on the fee as well as on your spending, unless you pay it in full.

Last year, total sales for your grocery store were $17,000 with returns of $457 and discounts of $700. The linear feet of shelving in the store totals 650. What are the sales less returns and discounts per linear foot of the store

Answers

Answer:24.37

Explanation:

24.37 just plug your formula and multiply the cash with store :)

THIS IS FOR CULINARY




A contingency plan for labor may include (choose one answer)

A. taxes

B. insurance

C. cross trained employees

D. layoffs

Answers

Answer:

D. layoffs

Explanation:

A contingency plan is an alternative plan of action in case of unexpected outcomes. It is devised and kept in place to be implemented in bad times.  A contingency plan is a sort of a  risk mitigation plan to help the business navigate through a bad situation efficiently.

A contingency plan for labor include measures that can help a business overcome tough seasons.  The business may need to layoff some employees to save on labor in times of economic downtime

Where a producer chooses the intensity level of its market coverage, which level is chosen to utilize the “shotgun” approach?

Answers

Answer:

The level that utilizes the "shotgun" approach to market coverage is:

Intensive Distribution (mass coverage).

Explanation:

This marketing approach aims to reach many consumers through as many sales channels as possible.  In this situation, consumers have easy access to the goods or services.  The other approaches include Selective Distribution (where few outlets in specific locations are selected for the distribution of the goods and services) and Exclusive Distribution (where limited outlets are chosen because of the target market).

Proxemics. What is the distance a speaker should have with the audience in a professional setting?

Answers

According to the rule of Proxemics, the distance a speaker should have with the audience in a professional setting is between 1 and 4 feet. According to the rule of Proxemics, this distance is the best for creating rapport and enhancing relationships.

What is Proxemics?

The study of human use of space and the consequences of population density on behavior, communication, and social interaction is known as proxemics.

Proxemics is one of numerous subcategories of nonverbal communication research, which also includes haptics, kinesics, singers, and chronemics.

What are the four kinds of proxemics?

In the early 1960s, anthropologist Edward Hall invented the term and defined four primary proxemic zones:

the private space, the personal space, the social space, and the public space.

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Calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produced. The marginal revenue of the 10th unit produced is

Answers

Complete Question:

If the price of an item is $3 per unit, calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produced. The marginal revenue of the 10th unit produced is ...

Answer:

a) The total revenue for 10 units = $30 ($3 * 10)

   The total revenue for 9 units = $27 ($3 * 9)

b) The marginal revenue of the 10th unit produced is $3 ($30 - $27).

Explanation:

a) Total revenue is a function of the selling price per unit and the quantity or units of sales.  For example, if a firm sells 5,000 units of its vehicle component at a unit price of $56, the total revenue will equal $280,000 (5,000 * $56).

b) The marginal revenue is the additional revenue that results from the sale of one additional unit of a product.  Another way of computing the marginal revenue is to divide the change in total revenue by the change in total output quantity.  This implies that marginal revenue is the additional price per unit of sales.

What happens to our peace and prosperity when we limit trade?

Answers

When we limit trade, our peace and prosperity will suffer and decrease.

What happens when trade is limited?

Trade is very important for the growth, peace, and prosperity of an economy. This is because imports give a nation more options for goods and services.

Exports then given a nation more income and better foreign exchange. This is why peace and prosperity increases when we engage in trade. Limiting trade would therefore have a negative effect on peace and prosperity.

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Disney has acquired The Muppets Studio (2004), Pixar (2006), Marvel Entertainment (2009), Lucas film (2012), and 21st Century Fox(2019). What are potential synergies in those acquisitions

Answers

Explanation:

Some of those companies had a different entertainment niche that had great revenue potential for Disney. For example, The Muppets Studio focused on video productions featuring puppet characters, which grew popular among young children. While Marvel Entertainment and Lucas Films produce video animations and films that have reached the top of the charts.

It is because of these identified benefits that the acquisition was made.

_____ refers to the idea that all organizational members are capable of leading themselves at least to some extent. ​ a. Leadership commitment b. Organizational capability c. Internal commitment d. Self-leadership

Answers

Answer:

Option d (Self-leadership) seems to be the appropriate response.

Explanation:

Self-leadership seems to be a process through recognizing whoever you are, defining certain ideal perceptions, as well as consciously leading yourself towards yourself. It, therefore, tells people who you are, but whether you're a certain kind of individual individuals would like to emulate.

Other possibilities aren't connected to the circumstance in question. So that is indeed the right choice.

will give brainliest
Georgia was responsible for dealing with customer complaints. She had a
customer who was very angrily accusing the store's sales associate of
disrespecting him while attending to him. What should Georgia do?
A. Offer a store gift card to the customer in order to make amends
for the wrong.
B. Fire the employee.
C. Apologize and ask for details about the situation.
D. Give the employee a stern lecture and make him apologize to the
customer.

Answers

Georgia should apologize and ask for details about the situation. Thus, option C is the correct option.

Who is the customer?

A customer is a person who orders a product or purchases a product or a service forwards he pays money.

Firing the employee is not a good option as they have heard only the complaints of the customer and have not listened to the part of the employee.

Secondly, offering a store gift card to the customer is an option when we have done some kind of mistake, but over here they may take it as a form of gift and make other people also claim the same.

Giving the employer stern lectures is not a good option, as there must be some sort of misunderstanding that the is not know about.

So asking the customer what the problem is and ask him how he was this respected by the customer care person. By knowing the details, we are sure the customer that the steps will be taken, and we can also know the story of the scene which was being created. Therefore, option C is the correct option

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Using a Keynesian model of an economy without a government and a foreign sector, illustrate using a well labelled diagram the impact of an increase in investment spending on the equilibrium level of income. (Hint: draw a well labelled diagram only).

Answers

Keynesians contend that because prices are somewhat rigid, changes in any aspect of spending, whether government, investment, or consumer spending, affect output. For instance, output will rise if government expenditure rises while all other spending factors stay the same.

In other words, at every income level, investing is more desired. Equilibrium income consequently increases from Y0 to Y1. As a result, while increasing planned investment spending increases equilibrium national income, decreasing planned investment expenditure decreases it.

Keynes understood that a potent tool for influencing aggregate demand was the government budget. Along with increased or decreased government spending having an impact on aggregate demand, tax rates could also have an impact on consumption and investment spending.

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Journalize the following transactions for Combs Company.
(a) Purchased 6,000 units of raw materials on account for $11,500. The standard cost was $12,000.
(b) Issued 5,600 units of raw materials for production. The standard units were 5,800.

Answers

Answer: See explanation

Explanation:

a. Debit: Raw material $12000

Credit: Account payable $11500

Credit: Material price variance $500

(To record material purchase)

b. Debit: Work in process 11600

Credit: Raw material 11200

Credit: Material price variance 400

(To record material issued)

Note:

Material price variance for (a)= 12000 - 11500 = 500

Work in progress = 5800 × 2 = 11600

Material price variance for (b) = 11600 - 11200 = 400

Suppose a stock can be purchased for $8, a put option on the stock can be purchased for $1.50, and a call option on the stock can be written (i.e., sold) for $.75. If holding these positions in combination can guarantee a payoff of $10 at the end of one year, then what must be the risk-free rate if no arbitrage opportunities exist?

Answers

Answer:

14.29%

Explanation:

We have Stock purchase price to be $8

We have the Put option purchase price to be $1.50

The Call option selling price is $0.75

From here we calculate the Total cash outflow as

8 + 1.5 - 0.75 = $8.75

The Total cash inflow after one year is put as $10

Therefore we have the risk free rate to be (10-8.75)/8.75 = 0.1429 = 14.29%

When a smaller country with fewer resources specializes its production and gains access to larger, international markets, this can create

Answers

Answer:

Economies of scale.

Explanation:

In Microeconomics, economies of scale can be defined as cost reductions or cost advantages that arises when a business entity is increases its production or are large in size.

This ultimately implies that, when an organization chooses a convenient scale of operation or reduce its scale of production, this would lead to a reduction in the cost of production and consequently, some benefits such as lower long-run average cost, increased sales, profits and lower cost price for the consumers of these finished products.

Generally, economies of scale arise when a smaller country with fewer resources specializes its production and gains access to larger, international markets. This is so because having a good number of professionals and experts would increase the level of production or output, as they are quite conversant with the best method of production, time management and efficiency.

Hence, when a smaller country with fewer resources specializes its production and gains access to larger, international markets, this can create economies of scale.

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