Business, 06.05.2020 18:06 TightKnowsDaWhey

The Quick Buck Company is an all-equity firm that has been in existence for the past three years. Company management expects that the company will last for two more years and then be dissolved. The firm will generate cash flows of $780,000 next year and $1,220,000 in two years, including the proceeds from the liquidation. There are 34,000 shares of stock outstanding and shareholders require a return of 11 percent.

Requirement 1:
What is the current price per share of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e. g., 32.16).)

Share price $
The Board of Directors is dissatisfied with the current dividend policy and proposes that a dividend of $870,000 be paid next year. To raise the cash necessary for the increased dividend, the company will sell new shares of stock.

Requirement 2:
How many shares of stock must be sold? (Do not round intermediate calculations. Round your answer to 2 decimal places (e. g., 32.16).)

Shares sold
Requirement 3:
What is the new price per share of the existing shares of stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e. g., 32.16).)

New share price

Answers: 3

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Answer from: Quest

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Answer from: Quest

The correct answer would be d if you are on edgenuity.

Answer from: Quest

Answer reflected in reasonable, documented employment policies that are honestly and equitable implemented to the satisfaction of both management and employee;

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The Quick Buck Company is an all-equity firm that has been in existence for the past three years. Co...

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