Question

In: Finance

iF the number of shares is 20000 at what roice per share would the MVA be...

iF the number of shares is 20000 at what roice per share would the MVA be equal to zero?

Solutions

Expert Solution

MVA = Market Value of Shares – Book Value of Shareholders’ Equity

Market Value of Shares = Markt Value of share*number of shares

{There shares include the common, preferred shares as well}

Book Value of Shareholder's Equity = Book Value of shareholder's equity.

So to MVA to e equal to Zero:- Market value of 20000 shares = Book Value of 20000 shares

So, MVA would be Zero at he price equal to Book Value


Related Solutions

Amounts are in thousands of dollars (except number of shares and price per share):    Kiwi...
Amounts are in thousands of dollars (except number of shares and price per share):    Kiwi Fruit Company Balance Sheet   Cash and equivalents $ 570   Operating assets 650   Property, plant, and equipment 2,700   Other assets 110   Total assets $ 4,030   Current liabilities $ 920   Long-term debt 1,280   Other liabilities 120   Total liabilities $ 2,320   Paid in capital $ 340   Retained earnings 1,370   Total equity $ 1,710   Total liabilities and equity $ 4,030      Kiwi Fruit Company Income Statement   Net sales...
Amounts are in thousands of dollars (except number of shares and price per share):    Kiwi...
Amounts are in thousands of dollars (except number of shares and price per share):    Kiwi Fruit Company Balance Sheet   Cash and equivalents $ 570   Operating assets 650   Property, plant, and equipment 2,700   Other assets 110   Total assets $ 4,030   Current liabilities $ 920   Long-term debt 1,280   Other liabilities 120   Total liabilities $ 2,320   Paid in capital $ 340   Retained earnings 1,370   Total equity $ 1,710   Total liabilities and equity $ 4,030      Kiwi Fruit Company Income Statement   Net sales...
The entry to sell 50 shares of $10 par ordinary shares at $16 per share would...
The entry to sell 50 shares of $10 par ordinary shares at $16 per share would include a: a. 500 debit to cash b. 500 debit to share capital c. 500 credit to share capital d. 500 credit to cash
Assume you sell short 1,000 shares of common stock at $35 per share. What would be...
Assume you sell short 1,000 shares of common stock at $35 per share. What would be your profit if you repurchase the stock at $25 per share? The stock paid no dividends during the period. A. $10,000 B. -$5,600 C. $5,600 D. -$10,000. E. $12,600
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit...
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit Company Balance Sheet Cash and equivalents $ 580 Operating assets 680 Property, plant, and equipment 2,700 Other assets 125 Total assets $ 4,085 Current liabilities $ 920 Long-term debt 1,275 Other liabilities 135 Total liabilities $ 2,330 Paid in capital $ 355 Retained earnings 1,400 Total equity $ 1,755 Total liabilities and equity $ 4,085 Kiwi Fruit Company Income Statement Net sales $ 9,500...
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit...
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit Company Balance Sheet Cash and equivalents $ 460 Operating assets 700 Property, plant, and equipment 2,900 Other assets 135 Total assets $ 4,195 Current liabilities $ 920 Long-term debt 1,345 Other liabilities 145 Total liabilities $ 2,410 Paid in capital $ 365 Retained earnings 1,420 Total equity $ 1,785 Total liabilities and equity $ 4,195 Kiwi Fruit Company Income Statement Net sales $ 7,900...
In computing earnings per share, the number of shares from convertible preferred stock are added to...
In computing earnings per share, the number of shares from convertible preferred stock are added to the denominator. If the preferred stock is cumulative, what amount should then be added to the numerator?      a. Annual preferred dividend                      b. Annual preferred dividend times (one minus the tax rate) c. Annual preferred dividend times the tax rate        d. Annual preferred dividend divided by the tax rate 14. All of the following would reduce the balance in retained earnings...
Amounts are in thousands of dollars (except number of shares and price per share: Kiwi Fruit...
Amounts are in thousands of dollars (except number of shares and price per share: Kiwi Fruit Company Balance Sheet   Cash and equivalents $570   Operating assets 650   Property, plant, and equipment 2,700   Other assets 110   Total assets $4,030   Current liabilities 920   Long-term debt 1,280   Other liabilities 120   Total liabilities $2,320   Paid in capital $340   Retained earnings 1,370   Total equity $1,710   Total liabilities and equity $4,030 Kiwi Fruit Company Income Statement   Net sales 7,800   Cost of goods sold -5,900   Gross profit 1,900...
DRIP evaluation initial number of shares 100 initial stock price per share $100 annual dividend per...
DRIP evaluation initial number of shares 100 initial stock price per share $100 annual dividend per share $2 dividend annual growth rate 3% stock price annual growth rate 5% number of years 10 ------------- -- without DRIP with DRIP EOP total value in dollars EOP number of shares EOP dividends Paid PLEASE SHOW YOUR WORK***
HH has $300M in common equity, with 5M shares outstanding. IF its MVA is $200M what...
HH has $300M in common equity, with 5M shares outstanding. IF its MVA is $200M what is the company's stock price?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT