Business, 13.03.2020 22:47 mariahchaparro08

Debt Irrelevance. River Cruises (see Section 16.1) is all-equity-financed with 100,000 sk It now proposes to issue $250,000 of bonds and use the proceeds to repurchase 25,000 sh Suppose an investor currently holds 1,000 shares in the company but is unhappy with decision to borrow $250,000. Which of the following modifications to her own inv portfolio would offset the effects of the firm's additional borrowing? (LO16-a. Borrow $250 on her own account and use the cash to buy additional River Cruises' shares. b. Raise $250 by selling River Cruises' shares and use the cash to buy the company's debt. c. Keep her current holding of River Cruises' shares and borrow $250 to invest in the compa- shares ares. estment ny's bond issue.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 01:50

Atlas manufacturing produces a unique valve, and has the capacity to produce 50,000 valves annually. currently atlas produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. what is the most likely behavior of total manufacturing costs and unit manufacturing costs given this change? a. total manufacturing costs will increase and unit manufacturing costs will also increase. b. total manufacturing costs will stay the same and unit manufacturing costs will stay the same. c. total manufacturing costs will increase and unit manufacturing costs will decrease. d. total manufacturing costs will increase and unit manufacturing costs will stay the same.

Answers: 1

Answer

Business, 22.06.2019 02:30

Luc do purchased stocks for $6,000. he paid $4,000 in cash and borrowed $2,000 from the brokerage firm. he bought 100 shares at $60.00 per share ($6,000 total). the loan has an annual interest rate of 8 percent. six months later, luc do sold the stock for $65 per share. he paid a commission of $120 and repaid the loan. his net profit was how much? pls

Answers: 3

Answer

Business, 22.06.2019 06:00

Use this image to answer the following question. when the economy is operating at point b, the us congress is most likely to follow

Answers: 3

Answer

Business, 22.06.2019 09:00

Harry is 25 years old with a 1.55 rating factor for his auto insurance. if his annual base premium is $1,012, what is his total premium? $1,568.60 $2,530 $1,582.55 $1,842.25

Answers: 3

Answer

You know the right answer?

Debt Irrelevance. River Cruises (see Section 16.1) is all-equity-financed with 100,000 sk It now pro...

Questions