Southwest Sands currently has 22,000 shares of stock outstanding. It is considering issuing $128,000 of debt at an interest rate of 7.5 percent. The break-even level of EBIT between these two capital structure options is $74,000. How many shares of stock will be repurchased if the company undergoes the recapitalization? Ignore taxes.
a. 2,446.33 shares
b. 2,242.47 shares
c. 3.091.89 shares
d. 2,854.05 shares
e. 2,711.35 shares
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Southwest Sands currently has 22,000 shares of stock outstanding. It is considering issuing $128,000 of debt at an interest rate of 7.5 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Henrietta Marston plans to retire at a specific date in the future. She is considering a fund that will be more risk-oriented now and become increasingly conservative as she approaches retirement.
Answers (1)
Sharon was debating whether she should open an account with a savings and loan association or with a credit union. She decided that the savings and loan association was best for her.
Answers (1)
If Dirk's Doughnuts is a perfectly competitive firm and is currently incurring economic losses of $500: a. firms will enter the market. b. individuals will demand fewer doughnuts. c. the market supply curve will shift to the right. d.
Answers (1)
Office Plus sells its main product, ergonomic mouse pads, for $13 each. Its variable cost is $5.10 per pad. Fixed costs are $205,000 per month for volumes up to 65,000 pads. Above 65,000 pads, monthly fixed costs are $250,000.
Answers (1)
A trade magazine routinely checks the drive-through service times of fast-food restaurants. an 80% confidence interval that results from examining 552 customers in one fast-food chain's drive-through has a lower bound of 172.
Answers (1)
New Questions in Business
Joe quits his computer programming job, where he was earning a salary of $50,000year, to start his own computer software business in a building that he owns and was previously renting out for $24,000/year.
Answers (1)
Prepare various types of budgets
Answers (1)
Nathan manages a website that sells bicycles. He's using a Google Ads Display campaign to drive purchases in that segment, and chooses In-Market audiences as his targeting option.
Answers (1)
If the mpc is 0.70 and investment increases by $3 billion, the equilibrium gdp will
Answers (1)
An accountant agreed to perform a compilation of a company's financial statements under Statements of Standards for Accounting and Review Services (SSARSs). During fieldwork, the accountant decided to perform some analytical procedures.
Answers (1)