2) Although there is more shares, the Earnings after taxes are now higher due to the lower variable costs, which compensates for the increase in earnings based on the same 1,000,000 units at $30. Also the bigger part of the 14M invested, 10M was financied with issuing of
Step 1: Being able to calculate the present value of the companies' stocks, we should first calculate the present value of the companies'
b. Calculate the new equilibrium stock prices at the above debt levels. How many shares
Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Their authorized capital stock consists of 800 million shares and then 300 of them are issued common stock.
1. Based on your review of the most recent annual financial statements and notes only, briefly assess the company’s performance for this potential investor. (Analyze based on data from Financial reports P71, 73, 74)
period a 10% stock dividend was declared and distributed. The market value was $25 a
| If there are 2 million shares of stock in the new corporation, what would be the price per share and the book value per share? (Round your answers to 2 decimal places.)
Common Stock issued by Plyer in 2015 = $ 75,000 - $ 50,000 = $
Company issues 15,000 shares of stock @ $200 per share to raise $3,000,000 in capital with 5% return (cost of equity)
The ‘Last Sale’ trading price on 18th September is $0.880 per share. Available investment fund is $200,000. Therefore, $200,000 divided by $0.880 per share equals to 227,272.73 share can be purchased. . From the annual report
a) How many shares will the firm have to issue, assuming they issue the new shares at the current price per share?
Market value per share = Book value per share = $12,000 / 750 shares = $16 per share
The change in the growth assumption has significant impact on the stock price. Under the high estimate of growth rate 236%, the new price per share is $107.56. Under the low estimate of growth rate 35%, the new price per share is $2.36.
Common Share Value: Total market value of common share = price per share * number of pref. share = $25 * 100000 = $2,500,000