Chapter 7 case study

What is the dollar return on your investment? On this financial accounting question

35 Al- Hind Hardware Ltd. is a recently started distribution company in Muscat. The management of the company mulls to improve their operational efficiency based on their previous year experience. The finance manager of Al- hind company is seeking your help in assessing the stock turnover ratio and debtor's turnover ratio from the given financial data; t of Stock on 1-1-2020 was OMR 8,000, during the year 2020 the company made a total purchase of OMR 18,000 stion out of which OMR 3000 was on cash basis. Total sales of the company during the year 2020 is 35,000 of which 19,000 was on cash basis. Stock on 31-12-2020 is given as 6,000. The following are the other information extracted from the last year financial statements. Particulars Amount in OMR Return outwards 2,000 1,000 Return inwards Carriage outwards Salaries and wages 1,500 2,500 Opening debtors Closing debtors 7,000 12,000 Choose the correct Stock turn over ratio and Debtors turnover ratio from the following? re to search…

1).Big Rock is listed on the local stock exchange and its stock has had mixed performanceover the last few months. The company’s directors are interested in seeing how BigRock’s performance compares to other companies in the sector. Company                      Initial Investment      Value End of Year 1      Value Endof Year 2      Value Endof Year 3Big Rock Building Inc.       $1,000                          $1,268                          $1334                         $1,105 Required: Calculate the arithmetic mean and the geometric mean over the three-yearperiod for the investments made. 2).The company’s pension plan is managed by Castle Fund Managers, a leading provider ofpension services. It is a defined contribution plan, where the employees’ contributions arematched by the employer. Each employee had to choose one of the following investmentoptions for their individual plans: a. Preferred Accumulator (PA): Short-term focusb. Balanced Accumulator (BA): Medium-term focusc. Select…

K Using the data in the following table, calculate the return for investing in Boeing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock immediately. The realized return from January 2, 2008, to January 2, 2009 is%. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Historical Stock and Dividend Data for Boeing Dividend Date 1/3/2011 2/9/2011 5/11/2011 8/10/2011 11/8/2011 1/3/2012 Date 1/2/2008 2/6/2008 5/7/2008 8/6/2008 11/5/2008 1/2/2009 " Price $85.61 $79.69 $84.49 $66.96 $48.59 $45.42 $0.38 $0.38 $0.38 $0.00 Print Done Price $66.37 $71.74 $79.99 $56.99 $64.03 $75.65 Dividend $0.44 $0.44 $0.44 $0.44

Using the data in the following table, immediately. 9 calculate the return for investing in Boeing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock The realized return from January 2, 2008, to January 2, 2009 is Data table %. (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Dividend Historical Stock and Dividend Data for Boeing Date 1/3/2011 2/9/2011 5/11/2011 8/10/2011 11/8/2011 1/3/2012 Date 1/2/2008 2/6/2008 5/7/2008 8/6/2008 11/5/2008 1/2/2009 Price $87.75 $79.76 $85.01 $66.77 $47.75 $44.02 $0.37 $0.37 $0.37 $0.00 Print Done Price $67.58 $70.28 $80.89 $56.25 $64.88 $74.91 Dividend $0.41 $0.41 $0.41 $0.41 I X

Using the data in the following table, calculate the return for investing in Boeing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock immediately. The realized return from January 2, 2008, to January 2, 2009 is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Historical Stock and Dividend Data for Boeing Dividend Date 1/3/2011 2/9/2011 5/11/2011 8/10/2011 11/8/2011 1/3/2012 Date 1/2/2008 2/6/2008 5/7/2008 8/6/2008 11/5/2008 1/2/2009 Price $84.35 $80.07 $85.71 $63.71 $47.44 $44.97 $0.39 $0.39 $0.39 $0.00 Print Done Price $66.08 $72.91 $78.83 $55.86 $64.37 $75.65 Dividend $0.41 $0.41 $0.41 $0.41 X

A Residual Earnings Valuation (Easy) An analyst presents you with the following pro forma (in millions of dollars) that gives her forecast of earnings and dividends for 2013-2017. She asks you to value the 1,380 million shares outstanding at the end of 2012, when common shareholders' equity stood at $4,310 million. Use a required return for equity of 10 percent in your calculations. Earnings Dividends 2013E 388.0 115.0 2014E 570.0 160.0 2015E 599.0 349.0 2016E 629.0 367.0 2017E 660.4 385.4 Chapter 5 Accrual Accounting and Valuation: Pricing Book Values 169 a. Forecast book value, return on common equity (ROCE), and residual earnings for each of the years 2013-2017. b. Forecast growth rates for book value and residual earnings for each of the years 2014-2017. c. Calculate the per-share value of the equity from this pro forma. Would you call this a Case 1, 2, or 3 valuation? d. What is the premium over book value given by your calculation? What is the P/B ratio?

Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Five years of realized returns for Celestial Crane Cosmetics Inc. (Crane Cosmetics) are given in the following table:   2012 2013 2014 2015 2016 Stock return 23.75% 16.15% 28.50% 39.90% 12.35%   Also note that: 1. While Crane Cosmetics was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on Crane Cosmetics's equity are calculated as arithmetic returns.   Given this return data, the average realized return on Celestial Crane Cosmetics Inc.’s stock is    .   The preceding data series represents    of Crane Cosmetics’s historical returns. Based on this conclusion, the standard deviation of Crane Cosmetics’s historical returns is    .   If investors expect the…

The attached file contains hypothetical data for working this problem. Goodman Corporation’s and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown in the file. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. On a stand-alone basis which corporation is the least risky?

Using the data in the following table,, calculate the return for investing in Boeing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock immediately. The realized return from January 2, 2008, to January 2, 2009 is%. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Dividend Historical Stock and Dividend Data for Boeing Date 1/3/2011 2/9/2011 5/11/2011 8/10/2011 11/8/2011 1/3/2012 Date 1/2/2008 2/6/2008 5/7/2008 8/6/2008 11/5/2008 1/2/2009 Price $84.12 $77.43 $83.47 $64.69 $49.19 $44.46 $0.37 $0.37 $0.37 $0.00 Print Done Price $66.31 $72.71 $78.82 $56.87 $64.67 $73.36 Dividend $0.41 $0.41 $0.41 $0.41 - X

9. The stockholders’ equity section of Kay Corporation at the end of 2015 showed: (see attached images for the given, someone already answer letter a to c, so please answer letter d to f. please answer it. thank you so much) d. What is the average cost per share of treasury stock? (Round to the nearest cent.) e. What is the revised retained earnings if the net income for the year is P167,000 and total dividends declared is P50,000? f. Present the shareholders’ equity.

G. C. Murphey’s 2016 financial statements show average shareholders’ equity of $20,412 million, net income of $5,040 million, and average total assets of $86,700 million.How much is G. C. Murphey’s return on assets for the year?   Question 21 options:   A)  4.77%   B)  5.81%   C)  11.42%   D)  24.69%

R.R. Donnelley & Sons. How many shares of the company's stock are outstanding? What is the total market value of the firm? What were its profits in the most recent fiscal year? (as on 2015) (collect data from finance.yahoo.com)

A transportation company needs to determine the cost of capital of its shares common. The company's stock is currently selling for $ 57.50. The company expects pay a dividend of $ 3.40 at the end of the year (2020). The following table shows the dividends of the last 5 years. Year Dividend2019 $ 3.102018 2.922017 2.602016 2.302015 2.12After administrative costs, the company expects to earn $ 52 per share from a new issue.a) Determine the growth rate of dividends from 2015 to 2019. (g =?)

Provide solution for this accounting question

You have been asked by your employers to demonstrate your knowledge in business valuation process, by analyzing the value of Best Group Savings and Loans Company (BGSLC). The company paid a dividend of GH¢ 250,000 this year. The current return to shareholders of companies in the same industry as BGSLC is 12%, although it is expected that an additional risk premium of 2% will be applicable to BGSLC, being a smaller and unquoted company. Compute the expected valuation of BGSLC, if: The current level of dividend is expected to continue into the foreseeable future The dividend is expected to grow at a rate 4% par into foreseeable future The dividend is expected to grow at a 3% rate for three years and 2% afterwards

Felton Publishing recently completed its IPO. The stock was offered at $14.07 per share. On the first day of​ trading, the stock closed at $19.97 per share. a. What was the initial return on Felton​? b. Who benefited from this​ underpricing? Who​ lost, and​ why?

c)​(i) Using the observed growth rate on DPS, determine the expected share price for Company B on 31 December 2021.

i, j and k