Question
PLEASE ANSWER QUESTIONS A, B, C AND D A - The objective of capital structure management is to find the capital mix that results in:
PLEASE ANSWER QUESTIONS A, B, C AND D
A - The objective of capital structure management is to find the capital mix that results in:
Group of answer choices
maximization of dividends paid.
fluffier cupcakes.
minimization of shareholder wealth.
maximization of net income.
minimization of the cost of capital.
B - XYZ has fixed costs of $226,753. The firm's sales are expected to be $425,907 this year if the firm sells 9,413 units. Variable costs amount to 41 percent of sales. What is the breakeven point in units for XYZ? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO THE NEAREST WHOLE NUMBER AT THE END. FOR EXAMPLE, IF YOUR ANSWER IS 8297.6901, ROUND TO 8298.
C - XYZ has 413,662 shares of common stock outstanding, a P/E ratio of 8, and $583,303 in net income. The board of directors has just voted in favor of a 3-for-2 stock split. You owned 224 shares before the stock split. How many shares will you own after the split? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO THE NEAREST WHOLE NUMBER AT THE END. FOR EXAMPLE, IF YOUR ANSWER IS 433.5000, ENTER IT AS 434.
D - XYZ has 417,677 shares of common stock outstanding, a P/E ratio of 10, and $540,366 in net income. The board of directors has just voted in favor of a 4-for-1 stock split. You owned 279 shares before the stock split. What will be the total value of your investment after the split? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO THE NEAREST WHOLE NUMBER AT THE END. FOR EXAMPLE, IF YOUR ANSWER IS 1700.5567, ENTER IT AS 1701.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started