Later in the year they repurchase 20,000 shares. How many shares are authorized, issued, outstanding, and treasury? Authorized=1,000,000 Issued=100,000 Outstanding=80,000 Treasury=20,000 2. On 1/1/2008 Company ABC issued 100,000 shares of $1 par common stock and 1,000 shares of $200 par 10% cumulative participating preferred stock for $2,000,000. At the time of the issuance the common stock was trading at $15 per share, and the preferred stock value is unknown.
DSO = Receivables / Ave. sales per day Receivables= DSO * Ave. sales per day = 20 * 20,000 Receivables= $400,000 (3-2) Debt Ratio: Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio? Debt ratio = 1 – (1 / Equity multiplier) Debt ratio = 1 – (1/2.5) = 1 - .40 = .60 Debt ratio = 60% (3-3) Market/Book Ratio: Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets.
Ans: DSO (Days Sales Outstanding) = Accounts Receivables/Average Sales per day Accounts Receivables = 20 * 20000 = $400,000 (3-2) Debt Ratio Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debtratio? Ans: Equity Multiplier = 2.5 Therefore Equity Ratio = 1/EM Equity Ratio = 1/2.5 = 0.40 Debt Ratio + Equity Ratio = 1 Therefore Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60 = 60% (3-3) Market/Book Ratio Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets.
Market/Book Ratio = Market Value per Share/(Common Equity/Common Stock Outstanding) = $75/($6,000,000/800,000,000) = $75/7.5 = 10 (3-4) A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio? Price/Cash Flow Ratio = Price per Share/Cash Flow per Share = $3 x 8.0 = $24 P/E Ratio = Price per Share/EPS = $24/1.5 = 16 (3-5) Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is its ROE?
$24,000 B. $75,000 C. $99,000 D. $51,000 E. $80,000 Difficulty: Easy 3. On January 1, 2008, Pacer Company paid $1,920,000 for 60,000 shares of Lennon Co.'s voting common stock which represents a 45% investment. No allocation to goodwill or other specific account was made. Significant influence over Lennon was achieved by this acquisition.
Retrieved from http://www.frbsf.org /education/publications/doctor-econ/2005/october/debt-equity-market Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands) | | | | | | | | | | | September 28, 2013 | | | September 29, 2012 |
| On January 1, 2013, Pacer Company paid $1,920,000 for 60,000 shares of Lennon Co.'s voting common stock which represents a 45% investment. No allocation to goodwill or other specific account was made. Significant influence over Lennon was achieved by this acquisition. Lennon distributed a dividend of $2.50 per share during 2013 and reported net income of $670,000. What was the balance in the Investment in Lennon Co. account found in the financial records of Pacer as of December 31, 2013?
7-6, 7-7, and Concept Summary 7-2 | | | | | Question 2 0 out of 3.33333 points | | | Jimmy owns 100% of Robin Corporation and 100% of Oriole Corporation. Both corporations have substantial E & P. Jimmy sells 40 shares (40% of his interest) in Robin (basis of $300,000) to Oriole for $400,000. Jimmy purchased the stock in Robin six years ago. Jimmy has:Answer | | | | | Selected Answer: | [None Given] | Correct Answer: | Dividend income of $400,000. | Response Feedback: | Sections 302 and 304 would cause the entire $400,000 to be a taxable dividend.
If you owned 300 shares of FedEx, what was your dollar return and percent return? Dollar return= $106.69x300-$103.39x300+$0.35x 300= $1095 Percent return= $1095 divided by ($103.39x300)= 0.0353= 3.53% Question 5 Rank the following three stocks by their level of total risk, highest to lowest. Rail haul has an average return of 12% and standard deviation of 25%. The average return and standard deviation of Idol staff are 15% and 35%; and of Poker-R-Us are 9% and 20%? 1)Idol Staff 2) Rail Haul 3) Poker-R-Us Question 6 Rank the following 3 stocks by their level of total risk, highest to lowest.
This was the initial amount invested by two of Neverfail founding employees. 4,796,000 shares of common stock were issued at $0.01 par value. After Angel Investment: According to the case, George Lawrence and another Seattle Angel acquired 800,000 shares of convertible preferred stock at $1 per share. This gives a total of $800,000. With this new development, if we assume that the previous 4,796,000 shares of common stock that were originally issued in March of 1993 are now also worth $1 per share, this gives a total of $4,796,000.