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

Question

1 Approved Answer

Robinson&Robinson is an all-equity company with 390,000 shares of stock outstanding. Robinson&Robinson has just borrowed $3,500,000 at an interest rate of 3.3% and used the

Robinson&Robinson is an all-equity company with 390,000 shares of stock outstanding. Robinson&Robinson has just borrowed $3,500,000 at an interest rate of 3.3% and used the entire $3,500,000 in a buyback of 86,000 shares of the outstanding stock. Ignoring taxes, what is the current value of Robinson&Robinson?

A. There is not enough information to find the firms current value

B. $15,872,093.02

C. $16,395,872.09

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Front Office Operations And Night Audit Workbook

Front Office Operations And Night Audit Workbook

Authors: Patrick J. Moreo, Gail Sammons, Jim Dougan, James Dougan

1st Edition

0133987698, 978-0133987690

More Books

Students also viewed these Accounting questions

Question

★★★★★
Two different formulations of primer paint can be used on aluminum panels. The drying time of these two formulations is an important consideration in the manufacturing process. Twenty panels are...

Answered: 1 week ago

Question

★★★★★
The list that follows presents Shah Corporation's accounts (in alphabetical order) as of March 31, 2014. The list does not include the amount of Accounts Payable. Accounts...

Answered: 1 week ago

Question

★★★★★
(Appendix) The Unemployment Insurance Modernization Act was included in the fiscal stimulus package of early 2009. The act was designed to modernize and make corrections to serious defects found in...

Answered: 1 week ago

Question

★★★★★
On September 1, 2013, Carolina Electronics Company has 1,000 Blu-ray players ready for sale. On October 1, 2013, 900 are sold at $125 each with a 1-year warranty. Carolina estimates that the warranty...

Answered: 1 week ago

Question

★★★★★
During the current year, merchandise is sold for $21,100 cash and $341,700 on account. The cost of the merchandise sold is $217,200. What is the amount of the gross profit? $fill in the blank 1

Answered: 1 week ago

Question

★★★★★
Chino Company manufactures fabric and clothing Managers can either sell the unfinished fabric to other clothing manufacturers or incur additional conversion costs to create a finished garment. The...

Answered: 1 week ago

Question

★★★★★
Dominic's Deli recently calculated its annual break-even sales revenue to be $280,000. For each dollar of sales revenue, $0.40 goes to cover variable costs. a. Compute the contribution margin ratio....

Answered: 1 week ago

Question

★★★★★
Which of the following steps is not associated with the "Silent Phase" of the Change Process? Group of answer choices Generate urgency Maintaining motivation Build coalition Create vision

Answered: 1 week ago

Question

★★★★★
As a food worker, it's your responsibility to: Select all that apply: Complete cleaning and sanitising sign-off sheets as per the Food Safety Plan Write safety data sheets Know what to clean and...

Answered: 1 week ago

Question

★★★★★
Question 1 (4 points} During a throw, a pitcher exerts a net force of 19N on a ball weighing 1.1 N. a. What is the ball's acceleration? b. The ball moves 3.3m before the pitcher releases it. With...

Answered: 1 week ago

Question

★★★★★
Lab 10: Simple Harmonic Motion Purpose/objective: In this experiment the student can observe and study the periodic motion in a plane and investigate the relation between the period of a simple...

Answered: 1 week ago

Question

★★★★★
Debate the diffi culties that could emerge with the direct transfer of Western HRM methods into a Gulf country. What approaches should you adopt to avoid these diffi culties?

Answered: 1 week ago

Question

★★★★★
In the Meteor case study, Sarah has put together a comprehensive human resource plan. Think about what could go wrong or what diffi culties could be faced and work out how you could deal with these...

Answered: 1 week ago

Question

★★★★★
Read the article about the staff shortages in Essex County Council. Think of other areas where there are shortages of professional staff (accounting, legal, planning, hospitals) and suggest ideas how...

Answered: 1 week ago

Previous Question Next Question