subject
Business, 07.04.2020 21:36 jordanjones022

Obsession Inc. is a publicly traded company with two business lines: perfumes and apparel. The beta of this company is 1.72. Obsession Inc. is contemplating a major restructuring in which it wants to sell off its apparel division, which has an unlevered beta of 0.71, for 20 million. It also wants to borrow an additional 25 million and buy back stock worth 45 million. After the sale of the division and the share repurchase, Obsession Inc. will have 46 million in debt and 143 million in equity outstanding. Assume a tax rate of 40.00% percent. The unlevered beta of the perfume division isa.46 mn and 143 mn
b.21 mn and 188 mn
c.71 mn and 143 mn
d.46 mn and 188 mn
e.71 mn and 143 mn

ansver
Answers: 3
Show answers

Other questions on the subject: Business

image
Business, 21.06.2019 15:30, Kzamor
Last week, linda's commission check was $84. if she earns a 12.5% commission on sales, what were her total sales?
Answers: 2
continue
image
Business, 22.06.2019 11:20, murarimenon
Camilo is a self-employed roofer. he reported a profit of $30,000 on his schedule c. he had other taxable income of $5,000. he paid $3,000 for hospitalization insurance. his self-employment tax was $4,656. he paid his former wife $4,000 in court-ordered alimony and $4,000 in child support. what is the amount camilo can deduct in arriving at adjusted gross income (agi)?
Answers: 2
continue
image
Business, 22.06.2019 13:30, Geo777
You operate a small advertising agency. you employ two secretaries, a graphic designer, three sales representatives, and an office coordinator. 1. what types of things would you consider when determining how to compensate each position? describe two (2) considerations. 2. what type of compensation plan would you use for each position?
Answers: 1
continue
image
Business, 22.06.2019 14:10, liliauedt
When a shortage or a surplus arises in the loanable funds market a. the supply of loanable funds changes to return the economy to its original real interest rate b. the nominal interest rate is pulled to the new equilibrium level c. the demand for loanable funds changes to return the economy to its original real interest rate d. the real interest rate is pulled to the new equilibrium level
Answers: 3
continue
You know the right answer?
Obsession Inc. is a publicly traded company with two business lines: perfumes and apparel. The beta...

Questions in other subjects:

Konu
Physics, 24.12.2019 02:31
(double points) on september 24, 2011, 26 pieces of a satellite were predicted to fall to the earth's surface. the satellite pieces were orbiting the earth from a height of 50 mile...
Konu
Mathematics, 24.12.2019 02:31
(1 point) consider n=20 independent flips of a fair coin. say that a changeover occurs whenever an outcome differs from the one preceding it. for example, if n=6 and the outcome is...
Konu
Mathematics, 24.12.2019 02:31
Asurvey of 25 grocery stores revealed that the mean price of a gallon of milk was $2.98, with a standard error of $0.10. what is the 95% confidence interval to estimate the true co...
Konu
Mathematics, 24.12.2019 02:31
In a lecture hall at a collage, the number of seats per row increased at a constand rate. the professor counts 21 seats in row 3 and 33 seats in row 7. how many sets are there in r...
Konu
Social Studies, 24.12.2019 02:31
1) if 1 million passengers pass through the st. louis airport with checked baggage each month, a successful six sigma program for baggage handling would result in how many passenge...
Konu
Business, 24.12.2019 02:31
Dean, inc.'s charter indicates a par value of $1 per share. dean issues 100 shares at a market value of $8 per share. the journal entry to record this transaction will include a de...
Konu
Business, 24.12.2019 02:31
Oscar is a new compliance officer for mayer & meyer financial, inc., a registered investment adviser. which of the following activities listed below represents the highest pri...
Konu
Social Studies, 24.12.2019 02:31
Tariffs and import quotas can reduce unemployment in a u. s. import industry, but a. foreign countries could impose nontariff barriers on u. s. goods, reducing jobs in an export in...
Konu
Chemistry, 24.12.2019 02:31
Consider what you have learned in your astronomy class and this article about physical processes. what types of processes can emit gamma-rays? select all that apply. select all th...
Konu
Biology, 24.12.2019 02:31
Discuss how the human immune system responds to an initial pathogenic exposure and how this initial exposure can lead to a quicker response following a second exposure to the same...
More questions: Business Another questions
See results (0)