FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Assume a perfect capital market. Which of the following values tends to increase if a company uses excess cash to buy back shares? a. The

Assume a perfect capital market. Which of the following values tends to increase if a company uses excess cash to buy back shares?

a.

The required return of equity/ROE

b.

The number of shares

c.

Total equity value

d.

Share price

e.

Total earnings

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

6. Compute E[X] if X has a density function given by (a) $$f(x) = \begin{cases} \frac{1}{4}xe^{-x/2} & x > 0 \\ 0 & otherwise \end{cases}$$ (b) $$f(x) = \begin{cases} c(1-x^2) & -1 Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★
Berrys Pet Store records purchase transactions in the general journal. The company is located in Boston, Massachusetts. In addition to a general ledger, Berrys Pet Store also uses an accounts payable...

Answered: 1 week ago

Question

★★★★★
The Ford Motor Company is considering three mutually exclusive electronic stability control systems for protection against rollover of its automobiles. The investment period is four years (equal...

Answered: 1 week ago

Question

★★★★★
For the following data set of measurements on the resistivity of 24 silicon wafers after an epitaxial layer has been deposited in a single wafer deposition process. calculate the appropriate measure...

Answered: 1 week ago

Question

★★★★★
Jan's electric bill is averaging $12 per day mostly due to the air conditioner. By setting the AC to a higher temperature, closing curtains to block sunlight, and using direct-blowing fans for...

Answered: 1 week ago

Question

★★★★★
What stage of human development are you in currently and what are your main challenges/activities? (I AM 24) Reflecting on Erikson's theory of psychosocial development, which stage do you find...

Answered: 1 week ago

Question

★★★★★
Think of a scenario from media you have recently seen that portrayed a traditional sexual script such as courtship, first date, first sexual encounter, long-term relationship, etc. First, briefly...

Answered: 1 week ago

Question

★★★★★
1. What was net operating working capital for 2014 and 2015? 2. What was the 2015 free cash flow? 3. How would you explain the large increase in 2015 dividends? Powell Panther Corporation: Balance...

Answered: 1 week ago

Question

★★★★★
Lobers, Inc., has two investment proposals, which have the following characteristics: PROJECT A PROJECT B PROFIT NET CASH PROFIT NET CASH PERIOD COST AFTER TAXES FLOW COST AFTER TAXES FLOW 0 $9,000 -...

Answered: 1 week ago

Previous Question Next Question