Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. roybus, inc., a manufacturer of flash memory, just

Roybus, Inc., a manufacturer of flash memory, just reported that its main production facility in...

90.2K

Verified Solution

Question

Accounting

image
Roybus, Inc., a manufacturer of flash memory, just reported that its main production facility in Tawan was destroyed in a fre. Asthough the plant was fully invured, the loss of production will decrease Roybus's free cash flow by $177 milion at the end of this year and by $62 million at the end of next year. a. If Roybus has 36 million shares outstanding and a weighted averago cost of capital of 12.6%, what change in Roybus's stock price would you expect upon this announcement? (Assurne that 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. a. If Roybus has 36 million shares outstanding and a weighted average cost of capital of 12.6%, what change in Roybur's stock price would you expect upon this announcement? (Assume that the value of Roybus's debt is not affected by the event) The change in price per share would be ? (Round to the nearest cent)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

People continue to take up smoking even though it has been known for over 40 year...

Biology
Q

In Java class PassengerComparator implements Comparator for a Passenger Implement a comparator where a FirstClassPassenger precedes a CoachPassenger,. If...

Programming
Q

A transmission wire oriented parallel to the x-axis carries a current of 200 A flowing along...

Physics
Q

How are organisms in the domain Eukarya classified?

Biology
Q

Use the method of cylindrical shells to find the volume generated by rotating the region...

Calculus
Q

Perform the vector addition 12 5 7 4

Calculus
Q

8

Algebra
Q

A stock that does not pay a dividend is trading at $73.5. A riskless bond...

Accounting
Q

Aqua Fun manufactures...

Accounting
Q

Siver Company makes a product that is...

Accounting
Q

a) The following information are related to XYZ Ltd: Year ended 31.12.2022 31.12.2021 Net profit...

Accounting
Q

Accounting