Ceal Corporation has 35.000 shares of common stock outstanding at a price per share of $85. The required retum on common stock is 12.70 percent. The outstanding debt has a total face value of $422.000 and currently sells for 154 percent of face. The yield to maturity on the debt is 826 percent. The company has 7600 shares of 8.40 percent prefered stock outstanding at a price of $98.00 per share. The preferred stock has a per value of $100. The tax rate is 21 percent Essmate the company's weighted average cost of capa O O O 10:50% 1070% 10:27A 141

Ceal Corporation has 35.000 shares of common stock outstanding at a price per share of $85. The required retum on common stock is 12.70 percent. The outstanding debt has a total face value of $422.000 and currently sells for 154 percent of face. The yield to maturity on the debt is 826 percent. The company has 7600 shares of 8.40 percent prefered stock outstanding at a price of $98.00 per share. The preferred stock has a per value of $100. The tax rate is 21 percent Essmate the company's weighted average cost of capa O O O 10:50% 1070% 10:27A 141

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 12RE: Given the following year-end information, compute Greenwood Corporations basic and diluted earnings...

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Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.
Imperial Industries has $400,000 in short-term debt and $2.6 million in long-term debt. Their preferred shares sell for $50.00 each, and their are 100,000 shares outstanding. Imperial's common stock sells for $32.00 per share, and there are 1 million shares outstanding. Use these data to calculate the value of Imperial's preferred equity, common equity and Debt . Calculate the value to the nearest dollar.
Masterson, Inc., has 8 million shares of common stock outstanding. The current share price is $74, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $95 million, has a coupon rate of 7 percent, and sells for 97 percent of par. The second issue has a face value of $80 million, has a coupon rate of 6 percent, and sells for 109 percent of par. The first issue matures in 23 years, the second in 6 years. Both bonds make semiannual coupon payments. a. What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) b. What are the company’s capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) c. Which are more relevant, the book or market value weights?
Hankins Corporation has 8.9 million shares of common stock outstanding, 640,000 shares of 7.4 percent preferred stock outstanding, and 189,000 of 8.6 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $65.40 per share and has a beta of 1.34, the preferred stock currently sells for $106.60 per share, and the bonds have 13 years to maturity and sell for 89 percent of par. The market risk premium is 7 percent, T-bills are yielding 5.7 percent, and the firm’s tax rate is 35 percent. If the firm is evaluating a new investment project that has the same risk as the firm’s typical project, what rate should the firm use to discount the project’s cash flows
Filer Manufacturing has 6,382,006 shares of common stock outstanding. The current share price is $37.95, and the book value per share is $5.14. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $67,660,240, has a 0.07 coupon, matures in 22 years and sells for 88 percent of par. The second issue has a face value of $46,537,404, has a 0.05 coupon, matures in 16 years, and sells for 90 percent of par. What is Filer's weight of debt on a market value basis? Enter the answer with 4 decimals (e.g. 0.2345)
Masterson, Inc., has 8 million shares of common stock outstanding. The current share price is $82, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $135 million, has a coupon rate of 7 percent, and sells for 93 percent of par. The second issue has a face value of $120 million, has a coupon rate of 6 percent, and sells for 102 percent of par. The first issue matures in 25 years, the second in 9 years. Both bonds make semiannual coupon payments. What are the company's capital structure weights on a book value basis? Equity/Value ___________ Debt/Value ____________ What are the company's capital structure weights on a market value basis? Equity/Value __________ Debt/Value ___________
Bonita Corporation earned $405,000 during a period when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of $15 per share during the period. Also outstanding were 15,900 warrants that could be exercised to purchase one share of common stock for $10 for each warrant exercised. Compute basic earnings per share Compute diluted earnings per share.
Filer Manufacturing has 9,839,969 shares of common stock outstanding. The current share price is $57.28, and the book value per share is $4.24. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $53,310,475, has a 0.07 coupon, matures in 13 years and sells for 81 percent of par. The second issue has a face value of $67,670,598, has a 0.07 coupon, matures in 8 years, and sells for 85 percent of par. What is Filer's weight of equity on a market value basis? Enter the answer with 4 decimals (e.g. 0.2345)
Kim's Bridal Shoppe has 12,400 shares of common stock outstanding at a price of $58 per share. It also has 325 shares of preferred stock outstanding at a price of $88 per share. There are 400 bonds outstanding that have a coupon rate of 7.7 percent paid semiannually. The bonds mature in 39 years, have a face value of $2,000, and sell at 113 percent of par. What is the capital structure weight of the common stock?
Filer Manufacturing has 5,766,872 shares of common stock outstanding. The current share price is $36.05, and the book value per share is $7.08. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $64,298,817, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $48,100,600, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par. The most recent dividend was $2.78 and the dividend growth rate is 0.05. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.35. What is Filer's aftertax cost of debt? Enter the answer with 4 decimals (e.g. 0.2345)
XYZ Corporation has 45,000 ordinary shares outstanding which are currently selling for 110 per share. The number of preference share outstanding is 30,000 and the book value of a share is $100 while the market value is $105. Company has issued 2500 bonds with face value of 1000. The Market value of bond is higher than the face value and it is $1,100.The required rate of return of ordinary shareholders, preference shareholders and bond holders are 10%, 12% and 15% respectively. The Company is subject to 30% corporate tax.Based on the information given;i. Calculate the market value of the firm ii. Calculate the capital structure weights iii. calculate the Weighted Average Cost of Capital (WACC) of the company
Market Basket, Inc., has 125,000 shares of common stock outstanding at a price of $43 a share. They also have 25,000 shares of preferred stock outstanding at a price of $55 a share. There are 10,000, 8 percent bonds outstanding that are priced at $990. The bonds mature in 16 years and pay interest semiannually. What is the capital structure weight of the preferredstock?