Essay on ACC 423 Final Exam

8) What would BV's 1988 earnings per share be after all of the above adjustments?

Our ending stock price at the end of year 2023 was $425.58, with the second highest stock price being Baldwin’s $159.81 (Appendix C).

3. Equity financing = $8,400,000(0.60) = $5,040,000 2011 Dividends = Net income - Equity financing = $14,400,000 - $5,040,000 = $9,360,000 All of the equity financing is done with retained earnings as long as they are available.

11. Bauerly Co. owned 70% of the voting common stock of Devin Co. During 2009, Devin made

period a 10% stock dividend was declared and distributed. The market value was $25 a

Since this was a stock for stock bid, Martin Marietta offered 0.5 shares for each Vulcan share, which was a premium of 18% to the average exchange ratio based on closing share prices for Martin Marietta and Vulcan for the 30-day period that ended December 9, 2011.

Andrew Company started round zero along with the competition with a stock market closing price of $34.25. Round one Andrews Company stock price increase by $6.08

However, at the ex-dividend date, May 12, 1989, the price of stock turned out to be about $13.5/share (from Historical Stock Price Performance of Sealed Air Corporation New York Stock Exchange Ticket SEE), which means the value of equity increased after the recapitalization. This part is the value generated in the leveraged recapitalization.

The reason for the increase in the stock price in Berkshire Hathaway was dependant on several factors. With the GEICO stock rising with $12.875 to $68.625 on the New York Stock Exchange, Geico Hathaway gained approximately $440 million on their 34.25 million shares in GEICO. With the gain from the upcoming deal with Walt Disney Company, as well as the publication of the Value Line Forecast for GEICO, it is understandable that the Berkshire Hathaway stock rose. Another factor that also comes into play in this case is the famous track record of Warren Buffett when it comes to investing.

The Venrock/BVP offer an inside round at 98.5¢ per share. The pre-money was roughly $25 million. They would share the $10 million, with Venrock taking more to increase its ownership, and leave the round open for another $5 million, getting the deal done at $15 million with an option to close as high as $18 million.

In the year 1983, it entered into agreement with Biological Labs, Inc. The company sold to Biological Labs, Inc. 5% of its outstanding shares for $7 million plus a right to purchase additional 13% of ten outstanding

Range of values per share is from $67 to $83 per share. This is in range of Greenhill's own calculations.

In March 2012, Apple announced a quarterly dividend of $2.65 per share and a share repurchase plan of $10 billion. However, the stock price continued to fall. David Einhorn, president of Greenlight Capital, suggested that Apple should issue perpetual preferred stock that would pay $.50 quarterly dividend (or $2 yearly) based upon a face value of $50 for each share of the preferred stock. His argument was that issuing preferred stock did not require repatriation of offshore cash as the dividend could be paid from FCF. Each preferred stock could unlock $32 per share in value.

Watson has invested idle cash in the equity securities of several publicly traded companies. Watson intends to sell these securities during the first quarter of 2017, when it will need the cash to acquire seasonal inventory. These equity securities have a cost basis of $500,000 and a fair value of $620,000 at December 31, 2016.

On October 31, the stockholders’ equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.