AMS Company has unexpectedly generated a one-time extra $6 million in cash flow this year. After announcing the extra cash flow, AMS stock price was $55 per share (it has 1 million shares outstanding). The managers are considering spending the $6 million on a project that would generate a single cash flow of $6.5 million in one year, which they would then use to repurchase shares. Assume the cost of capital for the project is 11%. Required:
a. If they decide on the​ investment, what will happen to the price per​ share?
b. If they instead use the ​$6 million to repurchase stock​immediately, what will be the price per​ share?
c. Which decision is better and​ why?

Anne is comparing savings accounts. one account has an interest rate of 1.2 percent compounded yearly, and one account has an interest rate of 1.2 percent compounded monthly. which account will earn more money in interest? the account that earns 1.2 percent compounded yearly the account that earns 1.2 percent compounded monthly

Which is one solution to levy the complexity of the global matrix strategy with added customer-focused dimensions?

Vintage fun reproduces oldminusfashioned style roller skates and skateboards. the annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. the company has traditionally used direct labor hours to allocate its overhead to products. roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. the total estimated overhead for the period is $114,300. the company is looking at the possibility of changing to an activityminusbased costing system for its products. if the company used an activityminusbased costing system, it would have the following three activity cost pools: the overhead cost per skateboard using the traditional costing system would be closest to: a. $9.31. b. $65.31. c. $25.05. your answer is not correct.d.