Question
In: Finance
**********Please show your work for ******* Rally, Inc., is an all-equity firm with assets worth $21...
**********Please show your work for *******
Rally, Inc., is an all-equity firm with assets worth $21 billion and 9 billion shares outstanding. Rally plans to borrow $12 billion and use funds to repurchase shares. Rally's corporate tax rate is 35% , and Rally plans to keep its outstanding debt equal to $12 billion permanently.
a. Without the increase in leverage, what would be Rally's share price?
b. Suppose Rally offers $2.58 per share to repurchase its shares. Would shareholders sell for this price?
c. Suppose Rally offers $2.91 per share, and shareholders tender their shares at this price. What will be Rally's share price after the repurchase?
d. What is the lowest price Rally can offer and have shareholders tender their shares? What will be its stock price after the share repurchase in that case?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Rally, Inc., is an all-equity firm with assets worth $ 21 billion and 66 billion shares...
Rally, Inc., is an all-equity firm with assets worth $ 21
billion and 66 billion shares outstanding. Rally plans to
borrow
$ 8 billion and use funds to repurchase shares. Rally's
corporate tax rate is 35 %, and Rally plans to keep its
outstanding debt equal to$ 8 billion permanently.
a. Without the increase in leverage, what would be Rally's
share price?
b. Suppose Rally offers $ 3.84$ per share to repurchase its
shares. Would shareholders sell for this price?...
Rally, Inc., is an all-equity firm with assets worth $50 billion an 5 billion shares outstanding. Rally...
Rally, Inc., is an all-equity firm with assets worth $50
billion an 5 billion shares outstanding. Rally plans to
borrow $18 billion and use funds to repurchase shares. Rally's
corporate tax rate is 21%, and Rally plans to keep its outstanding
debt equal to $18 billion permanently.
a. Without the increase in leverage, what would be Rally's
share price?
Without the increase in leverage, Rally's share price is
$.............(Round to the nearest cent.)
b. Suppose Rally offers $10.52 per share to...
Rally, Inc., is an all-equity firm with assets worth $ 31 billion and 13 billion shares...
Rally, Inc., is an all-equity firm with assets worth $ 31
billion and 13 billion shares outstanding. Rally plans to borrow $
18 billion and use funds to repurchase shares. Rally's corporate
tax rate is 35 %, and Rally plans to keep its outstanding debt
equal to $ 18 billion permanently.
a. Without the increase in leverage, what would be Rally's
share price?
Without the increase in leverage, Rally's share price is
$____. (Round to the nearest cent.)
b. Suppose...
Rally, Inc., is an all-equity firm with assets worth $59 billion and 16 billion shares outstanding....
Rally, Inc., is an all-equity firm with assets worth
$59
billion and
16
billion shares outstanding. Rally plans to borrow
$32
billion and use funds to repurchase shares. Rally's corporate
tax rate is
35%,
and Rally plans to keep its outstanding debt equal to
$32
billion permanently.
a. Without the increase in leverage, what would be Rally's
share price?
b. Suppose Rally offers
$4.25
per share to repurchase its shares. Would shareholders sell for
this price?
c. Suppose Rally offers...
Show all of your work. Assets &nb
Show all of your work.
Assets
Liabilities and Owner’s
Equity
A/P
$60,000
LT Debt
100,000
Total Debt
160,000
CS, par
2,000
PIC
50,000
R/E
50,000
Total Equity
$102,000
Total Liabilities and Owners Equity
$262,000
Cash
$1,000
A/R
6,500
Inventory
62,500
Prepaids
12,000
Fixed Assets
250,000
Accum Depreciation
(70,000)
Total Assets
$262,000
Sales
$800,000
COGS
370.000
Gross Profit
430,000
Operating Exp.
-170,000
Depreciation
-10,000
EBIT
250,000
Interest
-10,000
EBT
240,000
Taxes
-80,000
Net Income
$160,000
Prepare a financial analysis
of...
Please show all work. 1. Balance Sheet a) A firm has total assets of $280000, current...
Please show all work.
1. Balance Sheet
a) A firm has total assets of $280000, current assets of
$76,000, current liabilities of $71,000 and total liabilities of
$130,000. ◦
What is shareholders equity? ◦ What is the net working capital
(NWC)? ◦ What is the value of the long-term assets? Assets =
Liabilities + Stockholders’ Equity NWC = Current Assets – Current
Liabilities Total Assets = Current Assets + Long-Term Assets
b) The balance sheet of Global Mills shows cash...
Show all of your work in the space provided. Show all of your work to get...
Show all of your work in the
space provided. Show all of your work to get full credit. All
answers have to be in SI units(20 pints for each
questions).
2.Following are the two sets of
position and time data collected using a motion sensor and
cart.
Table 1. table 2
Time
(s)
Position
(m)
V(instantaneous)
(m/s)
0
10.0
0.25
13.0
0.50
16.5
0.75
21.0
1.00
26.5
1.25
32.3
1.50
38.0
1.75
44.5
2.00
52.0
2.25
60.0
2.50
68.5...
Please show all your work step by step and all the formula that is used. This...
Please show all your work step by step and all the formula that
is used. This is my 3rd time posting as people do not explain what
they are doing. Therefore, do not answer if you can't explain.
D. What is the present value (PV) of a 12-years lease
arrangement with an interest rate of 7.5% that requires annual
payments of $4250. Per year with first payment being due now?
E. A recent college graduate hopes to have $200000. Saved...
PLEASE SHOW YOUR WORK WITH FORMULAS. 1.At the end of the year 2017 the assets of...
PLEASE SHOW YOUR WORK WITH FORMULAS.
1.At the end of the year 2017 the assets of the company X were
400 mill EUR and equity was 300 mill EUR. At the end of the year
2018 assets in the same company were 500 mill EUR and
equity was 400 mill. The net profit in 2018 was 100 mill EUR.
a)Calculate ROA and ROE for the year 2018.
b)What was indebtedness in the years 2017 and 2018?
c)What is the change...
Please answer all parts of the question. Please show all work and all steps. 1a.) Show...
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and all steps.
1a.) Show that the solutions of x' = arc tan (x) + t cannot have
maxima
1b.) Find the value of a such that the existence and uniqueness
theorem applies to the ivp x' = (3/2)((|x|)^(1/3)), x(0) = a.
1c.) Find the limits, as t approaches both positive infinity and
negative infinity, of the solution Φ(t) of the ivp x' =
(x+2)(1-x^4), x(0) = 0
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