Consider the following information regarding Seek Ltd (ASX:SEK) in Australia Year 0 Year 1 Year 2 EPS $1.45 $1.67 DPS $0.61 $0.68 Book Value of Share $19.00 Required Equity Return 5% Share Price on ASX $21
Q: Mr. J, Capital Office Equipment Accounts Payable 85 000.00 Notes Receivable 12 000.00 Notes Payable…
A: The income statement is prepared to record revenue and expenses of the current period and tells…
Q: Compute Lisa's 2019 contribution and carryover to 2020. a. 2019 Contribution: $40,000 Carryover to…
A: Lisa contributed a painting to a 50 % organization. That means that the eligible deduction for the…
Q: Dec 31, 2022 Dec 31, 2021 Current assets 36,000 28,000 Non-current assets 160,000 112,000 Current…
A: An accounting equation refers to a mathematical representation of the transaction. It indicates that…
Q: At the beginning of year 1, ABC Company raises $70 million of equity and uses the proceeds to buy a…
A: GIVEN At the beginning of year 1, ABC Company raises $70 million of equity and uses the proceeds…
Q: Salaries payable Accounts payable Employees' income tax payable Estimated warranty payable 450,000…
A: Current liabilities includes the amounts which are obligated for a period of 1 year or less than it.…
Q: Explain the relationship between the price of a bond, coupon rate, yield and time.
A:
Q: The City of Bayamon maintains its books and records in a way that facilitates the preparation of the…
A: Item Account Title and Explanation Debit Credit a Dues from Federal Government $300,000…
Q: From an employee perspective, how are ISOs treated differently from NQOs for tax purposes? In…
A: An organisation offers its company's share as a part of compensation to its employees this is known…
Q: Compute the (1) direct labor rate variance and (2) direct labor efficiency variance. (Inc favorable…
A: Standard hours are given for 1 unit produced. It's converted to Standard hours for actual production…
Q: You have been assigned to examine the financial statements of PC corp. for the year ended December…
A: Journal entry: The journal entry refers to the records of all business transactions and events in a…
Q: e books of K. Mullings, a trader, via th cord the daily transactions via the bod of May 2010
A: Closing Stock = Opening Stock + Purchases - Sales. By using the above formula we are going to…
Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…
A: Adjustment entries are those that are made after the trial balance is made by taking balances from…
Q: A and B form a partnership on January 1 of Year 1. Each makes a cash contribution to the partnership…
A: Partnership is a term used when 2 or more individuals join hands to do business for the purpose of…
Q: 3. The following transactions involving marketable securities investments of KLM Co., occurred…
A: Investment in Marketable Securities Investment in marketable securities which is either it invested…
Q: Problem #2: AMA cooperative store had the following activities for year ended 2021: gross sales…
A: Formula: Gross profit = Net sales - cost of goods sold
Q: On 10 January 2021, Mrs D Africa sold goods to three different clients, Mr P Lucky, Mrs V Happy and…
A: To account for Cash Receipts for sales made, i.e. where the payment method is cash, a cash invoice…
Q: During 2022, ABC Company introduced a new product carrying a two-year warranty against defects. The…
A: Warranty Liability: When a firm incurs warranty liabilities, it records the amount of repair or…
Q: Woody Ltd sold inventory items to its subsidiary Buzz Lightyear Ltd and had the following…
A: Consolidation In the consolidation parent company acquire the subsidiary company for above the 50%…
Q: Sheridan Corporation wishes to exchange a machine used in its operations. Sheridan has received the…
A: Journal entries are the books kept by all business entities to record their day to day…
Q: The production manager of Rordan Corporation has submitted the following quarterly production…
A: Total direct labor cost = Total direct labor hours needed x Direct labor cost per hour Total direct…
Q: 1. What is the total effect of the errors on the 2020 net income?
A: As per our protocol we provide solution to the one question only but you have asked three multiple…
Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…
A: 1. Determination of Journal entries for the 2021 write-offs and collection of previous written offs…
Q: 1. What is the total asset turnover in absolute amount or decimals? 2. What is the average age of…
A: Financial ratios refer to those ratios of the company which provide an overview of the company’s…
Q: Convert the cash flow shown in figure B to a future amount at t=7 when i=2%. a. $1110 $370 $370 $370…
A: To convert these cash inflows and outflows, we need to multiply the amount of cash inflows and…
Q: Which of the following statements is incorrect? For each business combination, one of the combining…
A: In this question, we will explain that which of the following statement is incorrect.
Q: 5. Assuming four annual deposits of ($1,000) are made, and the first payment occurs at the end of…
A: Annuity can be defined as a series of payments or receipts of equal amounts of money at equal…
Q: Which of the following statements is correct in accordance with AASB 16 Leases? Group of answer…
A: The question is related to Accounting for Lease.
Q: 4. Your financial analyst has computed your your firm's current ratio by dividing the current assets…
A: Current ratio is a metric used to measure the liquidity position of a business entity.
Q: Given the following information for Smashville, Inc., construct a balance sheet:
A: Answer:
Q: Paul and Wayne equally own PW Partnership. Paul's basis was $30,000 and Wayne's basis was $22,000 at…
A: Partnership: A legal form of business operation between two or more individuals who share management…
Q: The adjusted trial balance of Carla Vista Company for the year ended December 31, 2022, is as…
A: Multiple income statement is prepared to segregate the income and expenses into different…
Q: 1.What are the three primary inventory cost flow assumptions? 2. How is cost of goods sold…
A: Since you have posted multiple questions, we will do the first one for you. To get the other…
Q: Cost of goods manufactured $198,240 Selling expenses 66,220 Administrative expenses 35,010 Sales…
A: Formula: Cost of finished goods available for sale = Beginning finished goods + Cost of goods…
Q: -the book value at the end of (4th ) year using sum of year digits method. -If the vehicle sold…
A: Answer:
Q: rst year of operation. (Assume that all transactions are cash transactions unless otherwise stated.)…
A: Cost of goods sold refers to the expenses incurred by a company while selling its products in the…
Q: Love International Corp. has renegotiated a restructuring of its 10%, P2 million unsecured note…
A: The notes are repaid in more than one year therefore these are treated as a long-term liability. The…
Q: a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders equity
A: a. Ratio of fixed assets to long-term liabilities Fixed assets / Long-term liabilities = $793,900 /…
Q: On July 1, 2021, Sansrival Company started a sales promotional campaign. In each box of cereal sold,…
A: Liability are the claims or obligations which arises due to past, present and future events. These…
Q: digits method. -If the vehicle sold after (5) years with 40,000 $, was it sold with profit? Use…
A: 1. Book Value at the end of 4th year using sum of year digits method The sum of years’ digits method…
Q: Three different lease transactions are presented below for Carla Vista Enterprises. Assume that all…
A: An asset under the lease is to be classified as a capital lease if any one of four conditions must…
Q: The income statement and selected balance sheet information for Direct Products Company for the year…
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…
Q: $125,000. The book values and fair values of except for buildings and equipment, which were worth…
A: Elimination entries are defined as those entries that re recorded to present the account balances of…
Q: 1. Use the additional information to calculate the total cost of merchandise purchases 2. Prepare a…
A: An income statement is the one that is prepared by the company as a part of a financial statement by…
Q: a. Show the accounting entries that you would make to record depreciation on tractors of R20 000,…
A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…
Q: At what amount should the land be recorded? b.At what amount should the new office building be…
A: Sandhill Chrome Bumpers bought two acres of land with an old office building on it that was deemed…
Q: Question 2 please see the following financial information for Company A and B respectively.…
A: ROE = Return on equity Return on equity is a measure of company's profitability (Net income) with…
Q: On October 20, 2018, Toffeenut Project Company purchased all the assets and assumed all the…
A: Goodwill is an intangible asset that is recognized during the process of a company buying another…
Q: discussion on why is it important for an estate to have cash and why should selling an estate's…
A: Here discuss about the details of estate tax and its important for the cash liquidity and the…
Q: 1. What amount should be reported as rent income for 2021? 2. On December 31, 2022, what amount…
A: Operating lease is a type of lease agreement where in the lease term is set to less than the useful…
Q: Unit IV question 3
A: A journal entry is a type of accounting entry used to record a business transaction in a company's…
Consider the following information regarding Seek Ltd (ASX:SEK) in Australia
|
|
Year 0 |
Year 1 |
Year 2
|
|
EPS |
|
$1.45 |
$1.67 |
|
DPS |
|
$0.61 |
$0.68
|
|
Book Value of Share |
$19.00
|
|
|
|
Required Equity Return |
5%
|
|
|
|
Share Price on ASX |
$21
|
|
|
Required:
a) Assuming Seek will close operations in 2 years’ time, value an ordinary share in this company
using the Residual Income Method.
b) Is Seek fairly valued on the ASX? Please explain fully your response.
Step by step
Solved in 2 steps
- Consider the following information regarding Sensation Ltd, a listed company on ASX in Australia. Year 0 Year 1 Year 2 EPS 1.61 1.79 DPS 0.64 0.75 Book Value of Share 22.00 Required Equity Return 6% Share Price on ASX 23.80 Required: a) Assuming Sensation will close operations in 2 years’ time, value an ordinary share in this company using the Residual Income Method. b) Is Sensation Ltd fairly valued on the ASX? Please explain fully your response.Maxi ltd is considering acquiring mini ltd. Selected financial data for the two companies are as follows: Max ltd Mini Ltd Annual sales sh. Million 750 90 Net income sh. Millions 60 7.5 Ordinary shares outstanding (millions) 15 3 Earnings per share (EPS) sh 4 2.5 Market price per share (sh) 44 20 Required: a) Calculate the maximum exchange ratios Maxi ltd should agree if it expects no dilution in the Earnings Per Share. b) How much premium would the shareholders of Mini Ltd1. Avalanche Inc. revealed the following information for the year ended December 31. 2021 Preference share. P100 par-P2.4 million; Share premium, preference - P700,000; Ordinary share, P15 par-P3.5 million, Share premium, ordinary-P1.5 million. Subscribed ordinary share - P100,000, Retained earnings - P2 million, Subscription receivable, ordinary - P20,000 How much is the legal capital? A.P6 million B.PB 1 million CP5.9 million D.P8 2 million 2.At the beginning of 2021, DAI Corp. was organized with authorized capital of 200,000, P500 par value shares. The following transactions transpired during its first year of business. February 4- Issued 15.000 shares at P510 per share April 10- Issued 3,000 shares for services received (FMV of the services is P1.7 million). October 23-Issued 5,000 shares in exchange for a land (FMV) the land is P3 million) What amount should be reported as share premium? A.11.500.000 B. 23.000 C.850.000 D.12.350.000 3. At the beginning of 2021, DAI Corp. was…
- The following is an extract from the trial balance of Tempo Ltd on 30 June 2022: Land and buildings 114000Equipment 210000Investment (80 000 shares of £1 each in Rhythm Ltd at cost price) 650000 Inventory (30/6/2008 - £382 000) 418000Trade receivables (30/6/2021 – £180 000) 206000Cash and cash equivalents 92000 Share capital: Ordinary share capital including premium 450000Preference share capital 200000 Retained earnings: Balance – beginning of year…Current Market Data of XYZ Company Paid-in Capital 250 million TL Number of Shares 250 million pieces Price of a Share 4.0 TL Market value of company 1000 million TL Current market data of XYZ Company are as above. XYZ Company decided to; increase its capital by 150% Non-Cash Capital increase. b. increase its capital; by 75% Non-Cash, by 75% paid in capital increase with a Pre-emptive Right of 3 TL. increase its capital; by 150% paid in capital increase with a Pre-emptive Right of 2.5 TL. issue 150% cash dividend, of which 100% will be Non-Cash Capital increase and the remaning payout will be paid in cash. Find the new market data of XYZ Company according to the 4 cases given above. (Please solve it with details thank you :))Solve the question completely please. Current Market Data of XYZ A.Ş. Paid-in Capital 250 million TL Number of Shares 250 million pieces Price of a Share 4.0 TL Market value of company 1000 million TL Current market data of XYZ A.Ş. are as above. XYZ A.Ş. decided to; a. increase its capital by 150% Non-Cash Capital increase. b. increase its capital; by 75% Non-Cash, by 75% paid in capital increase with a Pre-emptive Right of 3 TL. c. increase its capital; by 150% paid in capital increase with a Pre-emptive Right of 2.5 TL. d. issue 150% cash dividend, of which 100% will be Non-Cash Capital increase and the remaning payout will be paid in cash. Find the new market data of XYZ A.Ş. according to the 4 cases given above.
- Caroline Corporation had the following investment at FVTPL at the beginning of the current year: Fair ValueXYZ Corporation, 10,000 shares (originally cost P1,000,000) - P1,200,000DEF Company, 20,000 shares (originally cost P500,000) - 450,000During the current year, the following transactions occurred: Feb. 28 XYZ Corporation declared a 3-for-2 share split.Apr 31 DEF Company declared a 20% share dividend. The market value of DEF Company on this dateis P3.00. June 30 Sold 5,000 shares of DEF Company for P100,000, less brokers fee of P1,000.July 31 Sold 5,000 shares of XYZ Corporation for P135.Sept 30 Received share rights to purchase one share of XYZ Corporation for P100 per share. Thecompany should tender five rights for every share acquired. The market price of XYZCorporation shares on this date is P140.Oct. 31 Exercise all the share rights from XYZ Corporation. Dec. 31 The…A P1,000-par value preference share was issued for a net proceed of P1,100. It will be paying interest of 9% per annum. It has a liquidating value of P1,200 at the end of its 20-year term. The applicable tax rate to the entity is 30%. The effective cost of the preference share is closest toWorld Enterprises is determined to acquire Intous Ltd through exchanging stocks. World Enterprises is offering R65 per share for Intous ltd. You are given the following information World Enterprises Intous Ltd Net Income R50 R10 Shares outstanding 5000 2000 Earnings per share R10 R5 Market price per share R150 Price earnings ratio R15 a. Calculate the number of shares to be issued by Intous Ltd: b. Calculate combined earnings per share of both World Enterprise and Intous Ltd c. Calculate price earnings ratio (P/E ratio) paid (Hint: use the R65 to calculate the P/E ratio) d. Compare the current and paid P / E ratios
- Procta Ltd is determined to report earnings per share of R9.5. It therefore acquires JJ&J Company. You are given the following facts Proctas Ltd JJ&J Merged firm Earnings per share R6.50 R8 R9.50 Price per share R36 R21 ? Price-earnings ratio 18 7 ? Number of shares 50000 60000 ? Total earnings R325,000 R480,000 ? Total market value R5,850,000 R3,360,000 ? Once again there are no gains from merging. In exchange for JJ&J shares,Proctas Ltd issues just enough of its own shares to ensure its R2.67 earnings per share objective. a. Complete the above table for the merged firm. c. What is the cost of the cash offer if proctas ltd paid R2500000 for JJ&J?5. ABC Corp holds 1,000 shares of XYZ Corp.'s shares since 2010. The following are data available at Dec 31, 2020: Cost per share P3.00 Transaction cost per share (upon acquisition) P1 Most recent transaction price per share P2 Transaction cost per share (current) P.50 How much is the value of the investment at Dec 31, 2020? 2,000 2,500 3,000 4,000he following is an extract from the trial balance of Tempo Ltd on 30 June 2022:£Land and buildings 114 000Equipment 210 000Investment (80 000 shares of £1 each in Rhythm Ltd at cost price) 650 000Inventory (30/6/2008 - £382 000) 418 000Trade receivables (30/6/2021 – £180 000) 206 000Cash and cash equivalents 92 000Share capital:Ordinary share capital including premium 450 000Preference share capital 200 000Retained earnings:Balance – beginning of year 160 000Retained profit for the year 40 00012% Long term loan 420 000Trade payables (30/6/2021 – £190 000) 210 000Tax payable 110 000Dividends payable 100 000Additional information:1. Issued share capital:- 400 000 ordinary shares of £1 each- 40 000 10% preference shares of £5 each.2. Gross profit for the year amounted to £1 344 000 and represents 40% of turnover for the year.3. All sales and all purchases are on credit.4. Income from investment for the year amounted to £24 000.5. The dividends payable represents the total amount of…
