Roybus, inc., a manufacturer of flash memory, just reported that its main production facility in taiwan was destroyed in a fire.
although the plant was fully insured, the loss of production will decrease roybus’s free cash flow by $180 million at the end of this year and by $60 million at the end of next year.

a. if roybus has 35 million shares outstanding and a weighted average cost of capital of 13%, what change in roybus’s stock price would you expect upon this announce- ment? (assume the value of roybus’s debt is not affected by the event.)

b. would you expect to be able to sell roybus stock on hearing this announcement and make a profit? explain.

Maker-bot corporation has 10,000 shares of 10%, $90 par value, cumulative preferred stock outstanding since its inception. no dividends were declared in the first two years. if the company pays $400,000 of dividends in the third year, how much will common stockholders receive?

Which of the following best explains why online retail companies have an advantage over regular stores? a. their employees make less money because they mostly perform unskilled tasks. b. they are able to keep distribution costs low by negotiating deals with shipping companies. c. their transactions require expensive state-of-the-art technological devices. d. they have a larger number of potential customers because people anywhere can buy from them.

Analyzing operational changes operating results for department b of delta company during 2016 are as follows: sales $540,000 cost of goods sold 378,000 gross profit 162,000 direct expenses 120,000 common expenses 66,000 total expenses 186,000 net loss $(24,000) suppose that department b could increase physical volume of product sold by 10% if it spent an additional $18,000 on advertising while leaving selling prices unchanged. what effect would this have on the department's net income or net loss? (ignore income tax in your calculations.) use a negative sign to indicate a net loss answer; otherwise do not use negative signs with your answers. sales $answer cost of goods sold answer gross profit answer direct expenses answer common expenses answer total expenses answer net income (loss) $answer