Ghost, Inc., has no debt outstanding and a total market value of $395,600. Earnings before interest and taxes, EBIT, are projected to be $53,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 13 percent higher. If there is a recession, then EBIT will be 22 percent lower. The company is considering a $195,000 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 8,600 shares outstanding. The company has a tax rate of 21 percent, a market-to-book ratio of 1.0, and the stock price remains constant. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued.

a-1.
Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer 1

EPS for recession is $3.7975, EPS for normal is $4.8686, EPS for expansion is $5.5015, and Percentage change in EPS for expansion is 13% and for recession is -22%, EPS under each of the three scenarios after recapitalization is 4360 and percentage change in EPS after the recapitalization is -31.17% and 18.42% for recession and expansion respectively.

A-1) Calculation of EPS under each scenario:

EBIT for expansion condition,

= EBIT × 113%

= $53,000 × 113%

= $59,890

EBIT for recession conditions,

= EBIT × 78%

= $53,000 × 78%

= $41,340

Tax = EBT × 21%

Net income = EBT - Taxes

EPS = Net income ÷ No. of shares

EPS for recession = $3.7975

EPS for normal = $4.8686

EPS for expansion = $5.5015

A-2) Calculation of Percentage change in EPS,

For Expansion = (Expansion EPS - Normal EPS) ÷ Normal EPS

= (5.05 - 4.86) ÷ 4.86

= 13%

For Recession = (Recession EPS - Recession EPS) ÷ Recession EPS

= (4.86 - 3.79) ÷ 4.86

= -22%

B-1) Calculation of EPS under each of the three scenarios after recapitalization,

Market to Book ratio (l) = Market value ÷ Book value

l = $395,600 ÷ Book Value

Book Value = $395,600

Stock Price = Book Value ÷ No. of outstanding shares

= $395600 ÷ 8,600

= 46

No. of shares repurchased = Debt ÷ Stock Price

= $195,000 ÷ 46

= 4240

No. of shares after repurchasing = No. of outstanding shares - No. of shares repurchased

= 8,600 - 4240

= 4360

B-2) Calculating percentage change in EPS after recapitalization,

For Recession = (Recession EPS - Recession EPS) ÷ Recession EPS

= (4.66 - 6.77) ÷ 6.77

= -31.17%

For Expansion = (Expansion EPS - Normal EPS) ÷ Normal EPS

= (8.02 - 6.77) ÷ 6.77

= 18.42%

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Related Questions

david borrowed $4 from his mother each of the last tree months how much money does he owe his mother?

Answers

Answer:

12$

Step-by-step explanation:

He borrowed 4$ for three months.

4 x 3 = 12.

Answer = 12.

Hope this helps!

(Brainliest would mean a lot to me, thanks!)

Question content area top
Part 1
A box of cereal states that there are calories in a
​-cup serving. What is the unit rate for calories per​ cup? How many calories are there in of the​ cereal?

Answers

The unit rate for calories per cup is 100 calories per cup.

There is 400 calories in 4 cup of cereal.

Given,

The amount of calories in 3/4 of the cup = 75 calories

We have to find the unit rate of calories per cup.

That is,

Unit rate of calories = 75 / (3/4)

Unit rate of calories = 75 × (4/3)

Unit rate of calories = 25 × 4

Unit rate of calories = 100

There are 100 calories in a cup of cereals.

Now,

We have to find the calories in 4 cup of cereals.

Calories in 4 cup = Calories in one cup × 4

Calories in 4 cup = 100 × 4

Calories in 4 cup = 400

So,

There are 400 calories in 4 cup of cereals.

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Explain how to undo pemdas with this equation and find answer

Answers

Given that Sarah spent half of her weekly allowance.

She earns $4.70 for washing dogs.

The final amount is $ 13.50.

Let x be the weekly allowance.

She spent half of her allowance so she has half of the allowance.

[tex]\frac{x}{2}[/tex]

She earns $ 4.70, add this to her half of the allowance.

[tex]\frac{x}{2}+4.70[/tex]

This is equal to 13.50.

[tex]\frac{x}{2}+4.70=13.50[/tex]

Subtracting 4.70 from both sides, we get

[tex]\frac{x}{2}+4.70-4.70=13.50-4.70[/tex]

[tex]\frac{x}{2}=8.80[/tex]

Multiplying 2 on both sides, we get

[tex]\frac{x}{2}\times2=8.80\times2[/tex][tex]x=17.60[/tex]

Hence Sarah's weekly allowance is $ 17.60.

A local Pet Shelter has 4 orange cats and 7 black cats. What is probability of selecting a black cat? Please enter your answer as a fraction.

Answers

The Solution:

Given:

We are asked to find the probability of selecting a black cat.

By formula,

[tex]Probability=\frac{number\text{ of required outcomes}}{total\text{ possible outcomes}}[/tex]

Thus,

[tex]P(B)=\frac{number\text{ of black cats}}{total\text{ number of cats}}=\frac{7}{11}[/tex]

Therefore, the correct answer is 7/11

How many pounds of N are in 2 tons of manure (4.8% N)?

Answers

Answer: 192 lbs

Total weight of manure = 2 tons

Step1: we need to converts tons to pounds

1 ton = 2000 lb

2 tons = x lb

Cross multiply

2 x 2000 = 1 * x

x = 2 x 2000

x = 4000 lbs

Therefore, 2 ton of manure = 4000 lbs of manure

We have 4.8% of N in the manure

Pounds of N = 4.8/100 x 4000

Pounds of N = 0.048 x 4000

Pounds of N = 192 lbs

The pounds of N in 2 tons of manure is 192 lbs

what is the volume of the object in cubic centimeters? i think its 20, but i just want to double check to see if im right.

Answers

Given,

The measure of edge of the cube is 4 cm.

The total number of cubes are 5.

Required

The volume of the soid.

The volume of the solid is calculated as,

[tex]volume\text{ = side}\times side\times side[/tex]

Substituting the values then,

[tex]\begin{gathered} Volume\text{ =4}\times4\times4 \\ =64\text{ cm}^3 \end{gathered}[/tex]

The volume of the solid is,

[tex]\begin{gathered} Volume=5\times64 \\ =320\text{ cm}^3 \end{gathered}[/tex]

Hence, the volume of the solid is 320 cm^3.

1. Brian's math test scorés: 86, 90, 93, 85, 79, 92, 20, 84Mean:Median:

Answers

Answer:

[tex]\begin{gathered} \text{ Mean=78.625} \\ \text{Median}=84 \end{gathered}[/tex]

Step-by-step explanation:

The mean is the sum of all the values in a set of data, divided by the number of values on the list.

Hence, the mean of Brian's math test scores:

[tex]\begin{gathered} \text{ Mean= }\frac{86+90+93+85+79+92+20+84}{8} \\ \text{ Mean=}\frac{629}{8} \\ \text{ Mean=78.625} \end{gathered}[/tex]

The median is the middle number in a sorted, ascending or descending, list of numbers:

Arrange the data set from smallest to largest, if the number of data set is even, the median is the average of the two middle data points in the list.

[tex]20,79,84,82,86,90,92,93[/tex]

Hence, the median is the average of 82 and 86:

[tex]\begin{gathered} \text{Median}=\frac{82+86}{2} \\ \text{Median}=84 \end{gathered}[/tex]

HELPPPPPPPPPPDIDEOEOEKEKMEMENDNDNDNDND

Answers

1. No
2. No
3. No
4. Yes

What is the most precise name for quadrilateral ABCD with verticesA(-5, 7), B(6,-3), C(10, 2), and D(-1, 12)?A. rectangleB. rhombusC. squareD. parallelogram

Answers

Given that

The vertices of a quadrilateral are A(-5, 7), B(6,-3), C(10, 2), and D(-1, 12).

So we have to find the type of quadrilateral ABCD.

Explanation -

First, we have to find the length of each side AB, BC, CD, and DA.

We will use the distance formula to find the length of each side

[tex]\begin{gathered} T\text{he distance formula for point \lparen x}_1,y_1)\text{ and \lparen x}_2,y_2)\text{ is } \\ d=\sqrt{(x_2-x_1)^2+(y_2-y_1)^2} \end{gathered}[/tex]

Now we will find the sides by substituting the value,

[tex]\begin{gathered} For\text{ AB,} \\ AB=\sqrt{(6-(-5))^2+(-3-7)^2} \\ \\ AB=\sqrt{(6+5)^2+(-10)^2}=\sqrt{11^2+10^2}=\sqrt{121+100}=\sqrt{221} \\ \\ AB=\sqrt{221}\text{ units} \end{gathered}[/tex][tex]\begin{gathered} For\text{ BC,} \\ BC=\sqrt{(10-6)^2+(2-(-3))^2} \\ BC=\sqrt{4^2+(2+3)^2} \\ BC=\sqrt{16+25}=\sqrt{41} \\ BC=\sqrt{41}\text{ }units \end{gathered}[/tex][tex]\begin{gathered} For\text{ CD} \\ CD=\sqrt{(-1-10)\placeholder{⬚}^2+(12-2)\placeholder{⬚}^2} \\ CD=\sqrt{(-11)^2+(10)^2} \\ CD=\sqrt{121+100} \\ CD=\sqrt{221}\text{ units} \end{gathered}[/tex][tex]\begin{gathered} For\text{ DA,} \\ DA=\sqrt{(-1-(-5))^2+(12-7)^2} \\ DA=\sqrt{(-1+5)^2+5^2} \\ DA=\sqrt{4^2+5^2}=\sqrt{16+25} \\ DA=\sqrt{41}\text{ units} \end{gathered}[/tex]

So we found that the opposite sides are equal. So it can be a parallelogram or a rectangle.

Now, we will check the triangular part ABC, by applying Pythagoras' theorem.

[tex]\begin{gathered} In\text{ trianlge ABC, } \\ AC=\sqrt{(10-(-5))^2+(2-7)^2}=\sqrt{(10+5)^2+(-5)^2} \\ AC=\sqrt{15^2+5^2} \\ AC=\sqrt{225+25}=\sqrt{250} \\ Now\text{ using pythagoras theorem we have,} \\ AC^2=AB^2+BC^2 \\ \sqrt{250}^2=\sqrt{221}^2+\sqrt{41}^2 \\ 250=221+41 \\ 250\ne262 \end{gathered}[/tex]

So it is a parallelogram. Then option D is correct.

Final answer -

The final answer is a parallelogram.

1/6 of a number r decreased by 24 what is the algebraic expression

Answers

1/6a-24 ok ok ok ok ok

ASAP PLEASE HURRY
What is the value of q − 8 if q = −18?

A. 26

B. -26

C. 10

D. -10

Answers

Answer:

-26

Step-by-step explanation:

Q = -18

-18 - 8

-26

Hope this helps! :)

6 3 2 1 -6 -5 4 22 10 2 3 6 13 What kind of transformation does the graph show? A) flip B) rotation 9 slide D) translation

Answers

Student did not provided any picture and became unresponsive.

There are eight turtles 15 fish and 17 pelicans what percent of the animals are pelicans

Answers

The number of animals are given as;

[tex]\begin{gathered} \text{Turtles}=8 \\ \text{Fish}=15 \\ \text{Pelicans}=17 \\ \text{Total animals}=40 \end{gathered}[/tex]

The percentage that are pelicans would be calculated as follows;

[tex]\begin{gathered} \text{Percentage Pelicans}=\frac{17}{40}\times\frac{100}{1} \\ \text{Percentage Pelicans}=\frac{1700}{40} \\ P\text{ercentage Pelicans}=42.5\text{ } \end{gathered}[/tex]

ANSWER:

The percentage of the animals that are Pelicans is 42.5%

Calculate the population growth rate for Brazil:
r = (CBR + Immi) - (CDR + Emigr)
CBR = 2.6%, Immi = 2%, CDR = 2.3%,
Emig = 2%
(Portions of the numeric data are factual.)

Answers

0.3% is the population growth rate for Brazil.

How to find the population growth rate?

CBR = 2.6%

Immi = 2%

CDR = 2.3%

Emig = 2%

Solution:

r = (CBR + Immi) - (CDR + Emigr)

r = (2.6 + 2) - (2.3 + 2)

r = 4.6 - 4.3

r = 0.3%

0.3% is the population growth rate for Brazil.

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Does this work show that 8 is a solution to the equation s-3=11 and how?

Answers

Given -

s - 3 = 11

To Find -

Is s = 8 a solution or not?

Step-by-Step Explanation -

on Putting s = 8 in the above equation

8 - 3 = 11

5 = 11

Which is not true as 5 ≠ 11

Final Answer -

Option (D)

No, Because the last line of the work is not true. 5 and 11 are not equal

Triangle ABC is shown in this figure. 2 A B Which statement justifies that the sum of Angle 1 and Angle 2 is 180°? O All adjacent angles are supplementary. O Adjacent angles that form a linear pair are supplementary. O The sum of any interior and any exterior angle of a triangle is 180° 0 Each pair of interior and exterior angles that lie on a line is complementary

Answers

The answer is Adjacent angles that form a linear pair are supplementary.

November 1 Accepted a $4,000, 180-day, 6% note from Kelly White in granting a time extension on her past-due account receivable. December 31Adjusted the year-end accounts for the accrued interest earned on the White note. April 30White honored her note when presented for payment. Complete the table to calculate the interest amounts on December 31st and April 30th and use those calculated values to prepare your journal entries.

Answers

The interest amounts on December 31st and April 30th are $100, $33, and $67. Also, the journal entries are mentioned below.

What are Journal entries?A journal entry is an act of recording any transaction, whether one is economic or not.An accounting diary that displays the debit and credit balances of a corporation lists transactions. Multiple recordings, each of which is either a debit or a credit, may be included in the journal entry.The amount of the debits and credits must be equal in order for the journal entry to be declared balanced.Depreciation or bond amortization are examples of recurring items that can be recorded in journal entries.Accounts payable normally has its own sub-ledger that indirectly impacts the general ledger, and journal entries are frequently filed using a different module in accounting software.

The Computation of the interest amount is shown below:-

Particulars           Total through     Through maturity   Through maturity

                             Maturity              Dec 31                            Apr 30

Principal               $4,000                 $4,000                     $4,000

Rate                          5%                       5%                               5%

Time                     180 ÷ 360            60 ÷ 360                  120 ÷ 360

Total interest         $100                    $33                             $67

2. The Journal entries are shown below:-

a. Notes receivable Dr, $4,000

        To accounts receivable $4,000

(Being issuance of notes is recorded)

b. Interest receivable Dr, $33

       To Interest revenue $33

(Being interest revenue is recorded)  

c. Cash Dr, $4,100

       To Notes receivable  $4,000

       To Interest revenue  $67

       To Interest receivable $33

(Being cash received is recorded)

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Let f(-1)=16 and f(5) = -8Write the equation of the line in slope intercept form that passes throughthese two points

Answers

[tex]\begin{gathered} \Rightarrow x_1=-1,y_1=16,x_2=5,y_2=-8 \\ \text{The line of equation is,} \\ (y-y_1)=\frac{y_2-y_1}{x_2-x_1}(x-x_1) \\ y-16=\frac{-8-16}{5+1}(x+1) \\ y-16=\frac{-24}{6}(x+1) \\ y-16=-4(x+1) \\ y-16=-4x-4 \\ y=-4x+16-4 \\ y=-4x+12 \end{gathered}[/tex]

=MATHEMATICAL READINESSSummation of indexed dataThe following is a list of 14 measurements.38. -82. 19. 84. -37.93.-31, -73, -50.-65.-31. -85, -48Suppose that these 14 measurements are respectively laSum of Xi/ 50 with i going from 1 to 14Round your answer to at least two decimal places.

Answers

In order to calculate the sum we need to iterate over the "xi" variable going from 1 to 14 and adding all the data.

[tex]\begin{gathered} \sum ^{\infty}_{n\mathop=1}\frac{x_i}{50}\text{ = }\frac{38\text{ - 82}+19+84-37.93-31-73-50-65-31-85-48}{50} \\ \sum ^{\infty}_{n\mathop{=}1}\frac{x_i}{50}\text{ = }\frac{-361.93}{50}\text{ = -7}.2386 \end{gathered}[/tex]

The answer is approximately -7.24.

The rectangular floor of a classroom is 36 feet in length and 30 feet in width. A scale drawing of the floor has a length of 12 inches. What is the area, in square inches, of the floor in the scale drawing?

Answers

Answer:

120 square inches

Step-by-step explanation:

L = 36 feet

W = 30 feet

Scale:

l = 12 inches (1 foot)

w = 10 inches because 30/36 = 10/12..

10x12 inches = 120 square inches

5. Write the division problem as a
multiplication equation with a
missing factor. The find the quotient.
2.1 /0.7

Answers

The quotient in this division problem is 3,4.

What is division problem?
There are three main parts to a division problem that are -the dividend, the divisor, and the quotient. The dividend is the number that will be the  divided. The division is the number of (people )that the the  number is being divided by  among And The quotient is the answer.
a division is a process of a  splitting a specific of amount  into the equal parts.

Sol-
The formula is -
a/b=?
b×?=a
We can write a division statement as a multiplication statment
12/4=3
4×3=12
Thus
The quotients in this division problem are 3 and 4.

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a cooler at picnic contain

Answers

we know that

the total cans are 100

number of cans of root beer=24

number of cans of orange soda=12

number of cans of cola=16

therefore

the probability is equal to

P=(24+12+16)/100

P=52/100

P=0.52 or P=52%

as fraction is 52/100=26/50=13/25

answer is 13/25

what’s the correct answer answer asap for brainlist

Answers

Answer:

B

Step-by-step explanation:

Answer:

Step-by-step explanation:

B: played by solo instrument with orchestral accompaniment.

The first aircraft has 65 more seats than the second aircraft. The third aircraft has 41 fewer seat than the second aircraft. If their total number of seats is 402, find the number of seats for each aircraft.

Answers

Solution:

Let A be the first aircraft

Let B be the second aircraft

Let C be the third aircraft

Here is the information that is given in the question:

The first aircraft has 65 more seats than the second aircraft:

A = B + 65

The third aircraft has 41 fewer seats than the second aircraft

C = B - 41

their total number of seats is 402

A + B + C = 402

Now substitute the values in the 1st and 2nd equations into the 3rd.

(B+65) + B + (B-41) = 402

this is equivalent to:

3B + (65-41) = 402

this is equivalent to:

3B + 24 = 402

this is equivalent to:

3B = 402 - 24 = 378

solving for B, we get:

[tex]B\text{ = }\frac{378}{3}=126[/tex]

We can conclude that the correct answer is:

first aircraft A:

A = B + 65 = 126 + 65 = 191

that is:

A = 191

second aircraft:

B = 126

third aircraft:

C = B - 41 = 126 - 41 = 85

that is:

C = 85

Whats 5 and 6/4 ×8 and 9/6

Answers

Given that 5 6/4 x 8 9/6

Firstly, we need to convert the mixed fraction into improper fractions

[tex]undefined[/tex]

HELP ASP show your work!!

Answers

The minimum number of friends for which Jump it Up is 7

A two-variable linear equation can be thought of as a linear relationship between x and y, or two variables whose values rely on each other (often y and x) (usually x).

Sky high pricing:

$50 for <=10 people and $5 per person after that

Jump it Up pricing:

Set up charges = $70

Per person charges = $2

Let p be the number of people

Formulating the equation we get:

50 + 5p = 70 + 2p

3p = 20

p = 6.66

or p =7

So, Jump it up will be less expensive for 7 friends

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Cody's rent is increasing by $51 per month starting next year. That is an increase of 15% from his current rent. Let r represent Cody's current rent. Set up an equation and solve it to fibd the value of r.

Answers

Given :

Cody's rent is increasing by $51 per month starting next year.

That is an increase of 15% from his current rent.

Let the current rent = r

so, the increase = 15% of r = 0.15r

So, the equation that represent the situation is :

[tex]0.15\cdot r=51[/tex]

Solve for r :

[tex]r=\frac{51}{0.15}=340[/tex]

So, the current rent = $340

The rent for the next year = 340 + 51 = $391

3z - 8xyz + 4x^2y^2z please solve this

Answers

Answer:

z(3-8xy+4x^2y^2)

6. A grocery store sells bags of oranges in two different sizes.
The 3-pound bags of oranges cost $4.
The 8-pound bags of oranges for $9.
Which oranges cost less per pound? Explain or show your reasoning.
(From Unit 2, Lesson 10.).

Answers

The 8 pound bag of oranges cost less.
Explanation:
4/3= 1.33 pounds per bag
9/8 = 1.125 pounds per bag

going to send u a pic of the q

Answers

we have the phrase

fifteen occupant or less

[tex]\begin{gathered} n\leq15 \\ n\ge0 \end{gathered}[/tex]

Remember that the occupants can not be negative numbers

so

n=0,1,2,3,.....,15

we have

seventy stadiums or more

the algebraic expression is

[tex]n\ge70[/tex]

so

n=70,71,72,73,...

option Abecause the number of stadiums must be a whole number be a
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