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- A T&T based US subsidiary will announce a $1.50 per share cash dividend on June 1, 2022. It is noted that June 16 and 20 are local holidays because of Corpus Christi and Labor Day respectively. If June 22 is the date-of-record, what would have been the ex-dividend date? What would be the ex-dividend stock price if the price before the ex-dividend date is $18 per share? The calendar month of June 2022 is shown below for reference.ABC Inc. was established in 2013 with 100,000 ordinary shares with a nominal value of €20 each. There have been no more share offerings till now (31.12.2021), and the share price has fallen to €10, owing to the COVID-19 situation. The firm issued an 8-year €500,000 bond at par with a 9% interest rate on January 1, 2019. The firm's EBIT for 2021 was €120,000, and if the company does not expand, it is predicted to stay steady in the next years. The firm is presently evaluating a new €600,00 investment project that, if implemented, will boost EBIT by €40,000 per year. You're a member of the CEO's team, and you've been tasked with evaluating the following two funding possibilities for this project. New shares will be issued at a price of €10 per share. Make a new bond with a coupon rate of 13 percent. Assume neither option has any issuance costs and a tax rate of 25%. Answer the following questions by doing an EBIT-EPS analysis:Would you be willing to put money into the new venture? If so,…On September 3, 2021, Liberty Bank purchased 14,000 shares of eBay stock for $77 per share and classified the investment as TRADING. On September 30, 2021, eBay stock was trading at $70 per share, and on October 31, 2021, eBay stock was trading at $76 per share. The Investment in eBay will be shown on Liberty Bank’s September 30, 2021 Balance Sheets for: $1,078,000 $1,064,000 $1,029,000 $980,000 The Unrealized Gain or Unrealized Loss on this trading investment will be shown on Liberty Bank’s September 2021 Income Statement for: $84,000 unrealized gain $98,000 unrealized loss $49,000 unrealized gain $14,000 unrealized loss Which of the following is TRUE about investments categorized as trading securities? Changes in their market value are reflected in net income. They are purchased to be held to maturity. They are valued on the balance sheet at cost. They can consist of debt, but not equity, securities. 1. Which of the following businesses most likely would have a large…
- Gemilang Bhd has share capital of RM1 million in shares of 25 sen each. At 31 May 2022 shares had a market value of RM1.10 each. On 1 June 2022, the company makes a right issue of 1 shares for every 4 held at RM0.60 per share. Its profit were RM500,000 in 2022 and RM440,000 in 2021. The year-end is 30 November. Calculate (a) the theoretical ex-rights price; (b) the bonus issue element; (c) the basic earnings per share for 2021; and (d) the basic earnings per share for 2022.On July 1, 2021, APPLE's Company board of directors declared a 10%share dividend. The market price of Apple's 400,000 outstanding ordinaryshares, ₱50 par value, was ₱80 per share on the date of declaration. Theshare dividend was distributed on September 1, 2021, when the marketprice of shares was ₱100 per share. What amount should be charged toretained earnings as a result of the share dividend? a. ₱ 3,200,000b. ₱ 2,000,000c. ₱ 4,000,000d. ₱ 0The 880-crore Initial Public Offering (IPO) of TVS Supply Chain Solutions will open forpublic subscription on Thursday. The company has fixed a price band of 187 197 per share for the issue, which will close on the next Monday. The IPO comprise Of 600 crore of fresh issue and an offer for the sale of shares worth 280 crore by the existing shareholders, including Tata Capital, TVS Motors. Omega TC Holdings. and Kotak Special Situations Fund, among others. The proceeds from the IPO will partly be used to reduce debt.The company, in consultation with the book - running lead managers, has undertaken a pre - IPO placement, and accordingly, the fresh issue size has been reduced from 750 crore. At the upper end of the price band, the valuation ofthe company stands at 8, 750 crore. The company has posted an 11% growth in revenue from operations in FY23 to 10.235 crore from a year ago. It posted a net profit of 41.76 crore in FY2023 compared to a net loss of 45.80 crore the previous year.…
- A company had profit after tax of €50,000,000 for the year ended 31 December 2020. The number of shares in issue on 1 January 2020 was 12,000,000 and the company undertook a 2 for 1 stock split on 1st May and bought back 2,000,000 shares on 1st October financed by a debt issue. The company has 2 million preferred shares in issue each with 10 PAR value and a dividend of 8%. The company also has in issue convertible bonds with a total of 10,000,000 of PAR value with a coupon of 3% and each 100 of PAR convertible into 10 shares. The company also has issued stock options covering 600,000 shares with a strike price of €25. The share price at the end of the year was €35 and averaged €32 over the year. The company pays tax at 20%. Calculate EPS and diluted EPS for the company, assuming their accounting year is the same as the calendar year. With regards to the buyback of shares, explain how the buyback would be treated in the accounts and the reasons companies buy back shares.Alphabet (GOOGL) has yet to pay a dividend, but in spring 2018 it announced it would repurchase $8.5 billion worth of shares over the year. (Actually, the exact amount was $8,589,869,056-known as a "perfect" number because it is equal to the sum of its divisors). If the amount spent on share repurchases were expected to grow by 6.6% per year, and Alphabet's equity cost of capital is 7.9%, estimate Alphabet's market capitalization. If Alphabet has 710 million shares outstanding, what stock price does this correspond to? The share price is $ (Round to the nearest cent.) BECOMDriver Industries is a leading global manufacturer and marketer of power tools, hardware, and home improvement products. A press release contained the following announcement: NEW BRITAIN, Connecticut-(BUSINESS WIRE)-October 15, 2019-Driver Industries (NYSE: SWK) announced today that its Board of Directors approved a regular fourth-quarter cash dividend of $0.69 per common share. This extends the company's record for the longest consecutive annual and quarterly dividend payments among industrial companies listed on the New York Stock Exchange. The dividend is payable on Tuesday, December 17, 2019, to shareholders of record as of the close of business on Friday, November 29, 2019. At the time of the press release, the company had 308 million shares authorized and 156.0 million outstanding. The par value for the company's stock is $2.50 per share. Required: 1. & 2. Prepare journal entries as appropriate for each of the three dates mentioned above and to close the dividends account.…
- At the beginning of the reporting period, it has $5 million of share capital and 1.5 million ordinary shares outstanding. On 1 April 2022, the company announces a bonus issue of 2 shares for every share held on that date. By the end of the year Himalaya Ltd.’s profit attributable to ordinary shareholders amounts to $5,250,000. Year 2023: Himalaya Ltd. needs to raise funds for expansion of its business. Ms. Natasha Romanoff, CEO and Mr. Clint Barton, CFO have decided to make a non-renounceable rights issue to existing shareholders of 250,000 new shares at an issue price of $20 per share. Goldman Sachs has agreed to fully underwrite the rights issue. Himalaya Ltd issued a prospectus on 1 February 2023 and applications closed on 3 April 2023. Costs associated with the rights issue and the eventual issue of the shares were $45,000. For the year ending December 2022, calculate the 2022 basic earnings per share amounts that Himalaya Ltd. must disclose in its financial statements for the year…The Storehouse Limited (TSL) started in 2019 with a public issue of 3 million shares on the NZX, initially issued at $2.00 per share. TSL raised another issue in 2020 by issuing 4.5 million new shares at an issue price of $2.80 each. TSL’s shares currently trade at $8.00 per share. The book value of TSL’s total equity (as shown on its 2021 Balance Sheet) is________, and the market value of TSL’s equity is________. Choose the correct answer: $18,600,000, $60,000,000 $12,600,000, $36,000,000 $6,000,000, $24,000,000 $18,000,000, $60,000,000Nuts & Bolts Manufacturing is a leading global manufacturer and marketer of power tools, hardware, and home improvement products. A press release contained the following announcement: NEW BRITAIN, Connecticut-(BUSINESS WIRE)-October 15, 2019- Nuts & Bolts Manufacturing (NYSE: SWK) announced today that its Board of Directors approved a regular quarter cash dividend of $0.69 per common share. This extends the company's record for the longest consecutive annual and quarterly dividend payments among industrial companies listed on the New York Stock Exchange. The dividend is payable on Tuesday, December 17, 2019, to shareholders of record as of the close of business on Friday, November 29, 2019. At the time of the press release, the company. had 315 million shares authorized and 163.0 million outstanding. The par value for the company's stock is S 2.50 per share. Required: 1. & 2. Prepare journal as appropriate for each of the three dates. mentioned above and to close the…
