A company has outstanding 10 million shares of $2 par common stock and (1).docx

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A company has outstanding 10 million shares of $2 par common stock and 1 million shares of $4 par preferred stock. The preferred stock has an 8% dividend rate. The company declares $300,000 in total dividends for the year. Which of the following is true if the preferred stockholders have a cumulative dividend preference? Solution Preferred stockholders will receive the entire $300,000, and they must also be paid $20,000 sometime in the future before common stockholders will receive anything. .

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1.Which of the following is considered a hybrid organizational form? Corporation limited liability partnership sole proprietorship partnership 3. Teakap, Inc., has current assets of $ 1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. How much long-term debt does the firm have? $1,844,022 $2,303,010 $2,123,612 $803,010 5. Efficiency ratio: Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm's days's sales in inventory? 61.7 days 57.9 days 65.2 days 64.3 days 6. Leverage ratio: Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio? 1.74 0 0.60 1.47 8. Present value: Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar.) $22,680 $26,454 $16,670 $19,444 9. PV of multiple cash flows: Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years. Their scheduled payments, starting at the end of the year are as follows—$450,000, $560,000, $750,000, $875,000, and $1,000,000. What is the present value of these payments? (Round to the nearest dollar.) $2,735,200 $2,615,432 $2,431,224 $2,815,885 10. PV of multiple cash flows: Ajax Corp. is expecting the following cash flows—$79,000, $112,000, $164,000, $84,000, and $242,000—over the next five years. If the company's opportunity cost is 15 percent, what is the present value of these cash flows? (Round to the nearest dollar.) $480,906 $414,322 $477,235 $429,560 11. Future value of an annuity: Jayadev Athreya has started on his first job. He plans to start saving for retirement early. He will invest $5,000 at the end of each year for the next 45 years in a fund that will earn a return of 10 percent. How much will Jayadev have at the end of 45 years? (Round to the nearest dollar.) $3,594,524 $5,233,442 $1,745,600 $2,667,904 12. Serox stock was selling for $20 two years ago. The stock sold for $25 one year ago, and it is currently selling for $28. Serox pays a $1.10 dividend per year. What was the rate of return for owning Serox in the most recent year? (Round to the nearest percent.) 40% 12% 16% 32% 13. Bond price: Regatta, Inc., has six-year bonds outstanding that pay a 8.25 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 6.875 percent. What should the company's bonds be priced at today? Assume annual coupon payments. (Round to the nearest dollar.) $1,066 $923 $972 $1,014 14. PV of dividends: Next year Jenkins Traders will pay a dividend of $3.00. It expects to increase its dividend by $0.25 in each of the following three years. If their required rate of return is 14 percent, what is the present value of their dividends over the ne.

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1. value: 1.00 points Katie Homes and Garden Co. has 13,200,000 shares outstanding. The stock is currently selling at $50 per share. If an unfriendly outside group acquired 15 percent of the shares, existing stockholders will be able to buy new shares at 20 percent below the currently existing stock price. a. How many shares must the unfriendly outside group acquire for the poison pill to go into effect? (Do not round intermediate calculations.) Number of shares b. What will be the new purchase price for the existing stockholders? (Do not round intermediate calculations. Round your answer to 2 decimal places.) New purchase price $ 2. value: 1.00 points Mr. Meyers wishes to know how many shares are necessary to elect 2 directors out of 9 directors up for election in the Austin Power Company. There are 76,000 shares outstanding. (Do not round intermediate calculations.) Number of shares 3. value: 1.00 points Betsy Ross owns 978 shares in the Hanson Fabrics Company. There are 16 directors to be elected. There are 42,000 shares outstanding. The firm has adopted cumulative voting. a. How many total votes can be cast? (Do not round intermediate calculations and round your answer to the nearest whole number.) Total votes b. How many votes does Betsy control? (Do not round intermediate calculations and round your answer to the nearest whole number.) Votes c. What percentage of the total votes does she control? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Percentage of votes % 4. value: 1.00 points Midland Petroleum is holding a stockholders’ meeting next month. Ms. Ramsey is the president of the company and has the support of the existing board of directors. All 13 members of the board are up for reelection. Mr. Clark is a dissident stockholder. He controls proxies for 35,001 shares. Ms. Ramsey and her friends on the board control 55,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 33,998 shares. The company uses cumulative voting. a. How many directors can Mr. Clark be sure of electing? (Do not round intermediate calculations. Round down your answer to the nearest whole number.) Number of directors b. How many directors can Ms. Ramsey and her friends be sure of electing? (Do not round intermediate calculations. Round down your answer to the nearest whole number.) Number of directors c-1. How many directors could Mr. Clark elect if he obtains all the proxies for the uncommitted votes? (Do not round intermediate calculations. Round down your answer to the nearest whole number.) Number of directors c-2. Will he control the board? Yes No d. If nine directors were to be elected, and Ms. Ramsey and her friends had 63,001 shares and Mr. Clark had 43,001 shares plus half the uncommitted votes, how many directors could Mr. Clark elect?(Do not round intermediate calculations. Round down your answer ...

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1. A proxy fight occurs when: a competitor offers to sell their ownership interest in the firm. the board of directors disagree on the members of the management team. a group solicits voting rights to replace the board of directors. the firm is declared insolvent. the firm files for bankruptcy. 2. The process of planning and managing a firm's long-term assets is called: capital structure. capital budgeting. working capital management. financial depreciation. agency cost analysis. 3. Which one of the following actions by a financial manager creates an agency problem? agreeing to pay bonuses based on the market value of the company’s stock refusing to borrow money when doing so will create losses for the firm agreeing to expand the company at the expense of stockholders' value increasing current costs in order to increase the market value of the stockholders' equity refusing to lower selling prices if doing so will reduce the net profits 4. Which one of these is a cash outflow from a corporation? sale of an asset dividend payment profit retained by the firm sale of common stock issuance of debt 5. First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest compounded annually. If you made a $66,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Difference in accounts 6. Gerold invested $125 in an account that pays 5 percent simple interest. How much money will he have at the end of 7 years? $160.31 $168.75 $155.00 $175.50 $162.50 7. What is the present value of $12,450 to be received 5 years from today if the discount rate is 4.75 percent? $10,340.78 $9,871.86 $13,105.26 $9,761.00 $9,773.15 8. One year ago, you purchased 300 shares of IXC stock at a price of $22.05 per share, received $460 in dividends over the year, and today sold all of your shares for $29.32 per share. What was your dividend yield? 5.87% 5.23% 1.92% 6.95% 2.48% 9. One year ago, you purchased a stock at a price of $32.50. The stock pays quarterly dividends of $.40 per share. Today, the stock is worth $34.60 per share. What is the total dollar return per share to date from this investment? rev: 06_21_2016_QC_CS-54260 $2.50 $3.40 $2.10 $3.70 $3.80 10. Which one of these accounts is classified as a current asset on the balance sheet? accounts payable preferred stock net plant and equipment inventory intangible asset 11. Net working capital is defined as: current assets plus stockholders' equity. current assets minus current liabilities. fixed assets minus long-term liabilities. total assets minus total liabilities. current assets plus fixed assets. 12. Which one of the following accounts is included in stockholders' equity? intan ...

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FNCE 403v2 Assignment 3 Revised Nov. 7, 2012 Assignment 3 Details Complete and submit Assignment 3, which is worth 15% of your final grade, after you have finished Unit 6. If you have any questions about this assignment and how to complete it, contact the Student Support Centre. This assignment contains ten problems and is worth a total of 100 marks. Read the requirements for each problem and plan your responses carefully. Ensure that you answer each of the required questions as concisely and as completely as possible and include supporting calculations where required. 1. (7 marks) You are a bright new analyst in the risk-management division at RMS, a multinational technology company, and have recently been put in charge of managing the Euro/CAD exchange-rate risk that RMS faces. Consider RMS’s operations in Europe and Canada. a. Suppose monthly revenues in Europe average 10 million Euros and monthly production and distribution costs average 8 million Euro. If the resulting profits are repatriated to the production unit in Canada monthly, what risk does this production unit face? How might it hedge this risk? (2 marks) b. RMS’s worldwide retirement benefits unit is located in Canada and has the obligation to pay its retired European employees 20 million Euros monthly. What does this unit face and how could it hedge the risk? (2 marks) c. Given the transactions of the production and retirement units as given previously, what do you conclude are the exchange-rate risks faced by RMS as a whole in Europe? Does RMS need to enter into forward contracts? (3 marks) 2. (10 marks) Suppose the spot exchange rate between U.S. dollar and Canadian dollar is US$1.03/C$. The U.S. dollar risk-free rate is 2% per annum, compounded annually. The price of a two-year European call option and put option with an exercise price of US$1.05/C$ is US$4.45 and US$4.54, respectively. What is the Canadian dollar risk-free rate? FNCE 403v2 Assignment 3 Revised Nov. 7, 2012 3. (10 marks) Two firms have the borrowing rates shown below. Firm Fixed Rate Floating Rate AAA 5 yr T-bond + 60 bp LIBOR BBB 5 yr T-bond + 75 bp LIBOR + 30 bp As the CFO of firm AAA, you always consider an interest rate swap before borrowing money. Explain how, if at all, a swap with BBB would be advantageous to you if a. you wanted to borrow at a fixed rate. (7 marks) b. you wanted to borrow at a floating rate. (3 marks) 4. (10 marks) A corporation enters into a $35 million notional principal plain vanilla interest rate swap. The swap calls for the corporation to pay a fixed rate and receive a floating rate of LIBOR. The payments will be made every three months for one year. The term structure of LIBOR when the swap is initiated is as follows: Months Rate (%) 3 7.00 6 7.25 9 7.45 12 7.55 Assume all of rates are continuously compounded. a. Determine the fixed rate on the s ...

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On January 1- 2014- the Gamekeeper On January 1- 2014- the Gamekee.docx

tkathryn

On January 1, 2014, The Timber Company acquired a 12% interest in the Twig Corporation through the purcahse of 72,000 sahres of Twigs common stock, paying $422,000. During 2014, Twig paid $28,000 in total dividends and reported net income of $95,675. The market price of Twigs common stock was $5.44 per share on December 31, 2014. Journalize the following: A. Timbers stock acquisition B. Timbers realized income for 2104 C. Entry or entries to adjust the investment account to its appropriate 12/31/14 balance. Solution Investment in Common Stock Dr 422,000.00 To Bank A/C 422,000.00 (Being investment in common Stock) Bank Account Dr 3,360.00 To Dividend A/C 3,360.00 (Being dividend received(28000*12%) Provision for dimunition in Value Dr 30,320.00 To Investment 30,320.00 (Being decline in value of investment) Profit and loss Ac Dr 30,320.00 To Provision for dimunition in Value 30,320.00 (Being provision charged to profit and Loss Account) Note No of shares 72,000.00 Purchase price 422,000.00 Purchase price per share 5.86 Purchase price per share at end of year 5.44 Loss per share 0.42 Total decline in investment 30,320.00 .

On January 1- 2014- The Timber Company acquired a 12- interest in the.docx

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On January 1, 2014, Frick Company purchased 10,000 shares of the stock of Floozy, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $90,000, and represents a 30% ownership stake. Floozy made $25,000 of net income in 2014, and paid dividends of $10,000. The price of Floozy\'s stock increased from $10 per share at the beginning of the year, to $12 per share at the end of the year Requirements: a. Prepare the January 1 & December 31 general journal entries for Frick Company. b. How much should the Frick Company report on the balance sheet for the investment in Floozy as the end of 2014 Solution a. Prepare the January 1 & December 31 general journal entries for Frick Company. b. How much should the Frick Company report on the balance sheet for the investment in Floozy as the end of 2014 Frick Company report on the balance sheet for investment in Floozy as the end of 2014= $ 90000 .

On January 1- 2014- Frick Company purchased 10-000 shares of the stock.docx

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On January 1- 2013- Randolph signed a two year lease to rent office sp.docx

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On January 1, 2011, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000 shares of common stock in exchange for $135,600 cash. No other shares were issued during 2011, and no shares were repurchased by the corporation. On November 1, 2011, the corporation Solution Mulcahy Manufacturing Inc Stock holder equity, Dec, 31 2011 Particulars Amount Capital stock: Common stock $135,600 Net income $25,300 ____________ Total Stock holder equity $160,900 _____________ Note: corporation major stock holder sold to another stock holder, ownership change but corporation stock remain unchanged. Capital gain to particular stock holder not to corporation. .

On January 1- 2011- Mulcahy Manufacturing Inc-- a newly formed corpora.docx

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On January 1, 2011, Bishop Company issued 10% bonds dated January 1, 2011, with a face amount of $20 million. The bonds mature in 2020 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. REQUIRED: A. Determine the price of the bonds at January1, 2011. B. Prepare the journal entry to record the bond issuance by Bishop on January 1, 2011. C.Prepare the journal entry to record interest on June 30, 2011, using the effective interest method. D. Prepare the journal entry to record interest on December 31,2011, using the effective interest method Solution Answer A. Price of bond A=20*10%/2 i=12%/2=.6 n=10*2=20 FV = 20 million =1*(1-(1+.6)-20/0.6+20/(1+.6)*20 = 17.71 Million B. Cash.....................................................Dr.$177,06,016 Unmortized discount on bond Issue.........Dr $22,93,984 Bonds Payable.....................Cr $200,000,00 C. Interest Expense .....................................Dr $11,14,699 Cash ............................................................Cr $10,00,000 Unmortized discount on bond issue..................Cr.$1,14,699 .

On January 1- 2011- Bishop Company issued 10- bonds dated January 1- 2.docx

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On January 1, 2010 Manovic LTD paid HULU $120 for internet movie access for the entire year of 2010. 1)Create the proper journal entry for Manovic as of January 1, 2010. Include description of entry below it. 2)Create the proper journal entry to recognize entertainment expense on January 31, 2010. Include description of entry below it. 3)How much entertainment expense will Manovic have incurred by March 31th, 2010? 4)How much prepaid entertainment will Manovic still have remaining on March 31th , 2010? Solution 1jan)Prepaid Entertainment Debit $ 120 Cash creditÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $ 120 [Since advance paid for whole year for Internet movie access is an asset Therefore it is Debited.and cash is going out of business therefore credited] 31jan) Entertainment expense Debit $ 10 Prepaid Entertainment creditÂ Â Â $ 10 [Recognising the subscription paid in advance, for month of january of services used in january.since $120year is for whole year therefore subscription expense for month of january = $10 [120/12] subscription expense for month of January = 12 [120/12]. 31March)Expense incurred till 31 march is equal to 10*3 =$ 30 [from january to march] 31March)Till 31 march $30 is incurred as entertainment expense therefore prepaid entertainment still remaining on 31 march= $ 90Â Â Â [ 120-30] .

On January 1- 2010 Manovic LTD paid HULU $120 for internet movie acces.docx

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On December 31,2011, the shareholders\' equity section of the balance sheet of R & L Corporation reflected the following: On February 1,2012, the board of directors declared a 12 percent stock dividend to be issued April 30,2012. The market value of the shares on February 1,2012, was $16 per share. Required: For comparative purposes, prepare the shareholders\' equity section of the balance sheet (a) immediately before the stock dividend and (b) immediately after the stock dividend. (Omit the \"$\" sign in your response.) Solution Hi, Please find the alternative solution as follows: Thanks. .

On December 31-2011- the shareholders-' equity section of the balance.docx

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On December 31, 2012 Revel Corporation\'s balance sheet reported the following. During 2013, Rebel decided to discontinue accounting for share buybacks as treasury shares. Instead, the shares will be treated as having been retired. REQUIRED: PREPARE THE APPROPRIATE JOURNAL ENTRY TO EFFECT THIS CHANGE. Solution C COMMON stock (20000 x1) 20000 Paid-in Capital in Excess of Par 80000 Retained earning -difference 525 000 Treasury stock 625 000 4M/1M=$4 4X 20000=80000 .

On December 31- 2012 Revel Corporation-'s balance sheet reported the f.docx

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On December 31, 2008, Nolte Co. is in financial difficulty and cannot pay a note due that day. It is a $600,000 note with $60,000 accrued interest payable to Piper, Inc. Piper agrees to accept from Nolte equipment that has a fair value of $290,000, an original cost of $480,000, and accumulated depreciation of $230,000. Piper also forgives the accrued interest, extends the maturity date to December 31, 2011, reduces the face amount of the note to $250,000, and reduces the interest rate to 6%, with interest payable at the end of each year. *103. Nolte should recognize a gain or loss on the transfer of the equipment of a. $0. b. $40,000 gain. c. $60,000 gain. d. $190,000 loss. *104. Nolte should recognize a gain on the partial settlement and restructure of the debt of a. $0. b. $15,000. c. $55,000. d. $75,000. *105. Nolte should record interest expense for 2011 of a. $0. b. $15,000. c. $30,000. d. $45,000. Solution a. Fair value - ( Original cost - accumulated depreciation) = $290,000 .

On December 31- 2008- Nolte Co- is in financial difficulty and cannot.docx

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On February 12- Addison- Inc- purchased 6-000 shares of Lucas Company.docx

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On December 1, 2014, Mr. and Mrs. Tyler purchased four tickets for a New Year\'s Eve party at their church, a qualified charitable organization. Each ticket cost $75 and had a FMV of $50. The Tylers gave two of the tickets to a needy family in the community. Mr. Tyler tended bar at the party from 8pm to 4am and was paid $40. The usual charge for such services is $80. Immediately before midnight, Mr. Tyler pledged $200 to the church\'s building fund and delivered a check for that amount on January 2, 2015. Of the amounts described above, what is the total amount the Tylers can deduct as a charitable contribution deduction for 2014? $50 $100 $140 $340 None of the above. Solution cost of ticket =$75 FMV of tckets = $50 No of tikcets purchased = 4 Charitabale contribution available for deduction = (75-50)*4= $100 Ans is b =$100 .

On December 1- 2014- Mr- and Mrs- Tyler purchased four tickets for a N.docx

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On December 1, 2011, Joseph Company, a U.S. company, entered into a three-month forward contract to purchase 50,000 pesos on March 1, 2012, as a fair value hedge of a foreign currency denominated account payable. The following U.S. dollar per peso exchange rates apply: Date : December 1, 2011 Spot Rate : $0.092 Forward Rate (March 1, 2012) : $0.105 Date : December 31, 2011 Spot Rate : $0.090 Forward Rate : (March 1, 2012) : $0.095 Date : March 1, 2012 Spot Rate : $0.089 Forward Rate : (March 1, 2012) : N/A Question : Joseph\'s incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent is .9803. Which of the following is included in Joseph\'s December 31, 2011 balance sheet for the forward contract? A. $5,146.58 asset. B. $5,146.58 liability. C. $500 liability. D. $490.15 asset. E. $490.15 liability. I need detailed help with steps as to how E was calculated Solution Ans: E. $490.15 liability. $0.105 - $0.095 = ($0.01) Ã— MP50,000 = ($500.00) Ã— .9803 = ($490.15) Liability .

On December 1- 2011- Joseph Company- a U-S- company- entered into a th.docx

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on Stre - DH Solution The strength of a nucleophile depends on how easily it can donate its lone pair of electrons (for a neutral nucleophile like H 2 O) or how easily it can give away its negative charge (for a negatively charged species like Cl - ) to a center of positive charge. In terms of electronegativity, Fis a highly electronegative atom followed by O, then comes N and then C. So it is easier for C to share its electrons followed by N then O then F. In other words the more is the basicity of a nucleophile the more is its strength as a nucleophile. All nucleophiles are lewis bases. The basicity reduces as we move from left to right in a period. The arrangement of elements in decreasing order of basicity is C>N>O>F Hence this should be the decreasing order of strength of these atoms as a nucleophile. Likewise if we compare the given options, the arrangement of these groups in increasing order of strength of nucleophile is as shown -F<-OH<-CN<-C 2 H 6 (C 2 H 6 - ethyl) .

on Stre - DH SolutionThe strength of a nucleophile depends on how easi.docx

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