HaidiKho Allams has 1,750,000 shares of authorized common stock, each having a $1 par value. Over the years, it has issued 1,532,000 share 1.) What would be its common stock after the financing? Format: 1,111,111 2.)What would be its additional paid-in capital accounts after the financing? Format: 11,111,111
Q: Lockheed Martin (LM) the aerospace and defense conglomerate, has a stellar dividend history, with…
A: The question is related to the Dividend discount growth model. The Intrinsic Value of Share is the…
Q: A bond with 15 years to maturity, a face value of $1000, pays a coupon rate of 14% APR compounded…
A: Solution:- Yield-to-maturity means the rate of return earned by bond holder, if the bond is hold…
Q: A woman invests $1,200 at a rate of 7%. Find the time in years that it takes her investment to…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: A new car is going to cost the buyer R209 169,00. The buyer intends to make a down payment of R23…
A: Solution:- When a loan is taken, it can either be repaid as a lump sum payment or in installments.…
Q: Delta Itd has $820 in inventory, $640000 in fixed assets, $670 in accounts receivable, $800 in…
A: Given: Particulars Amount Fixed assets $640,000 Inventory $820 Accounts receivables $670…
Q: According to your research, the growth rate in dividends for SIR for the next five years is expected…
A: Given: Current dividend = $2.05 Required return = 12% Growth rate = 5.25%
Q: Kyle secured a lease on a machine by paying $2,000 as a down payment and then $700 at the beginning…
A: Down payment is of $2,000 Monthly payment beginning of every month is $700 Time period is 5 years…
Q: Face value=$1000 Annual coupon payment=$60 (First payment due in 1 year) Internal yield to…
A: Solution:- Macaulay’s Duration measures the immunizing period i.e. the period where price effect is…
Q: Consider two assets A and B expected return as 9% and respectively. Standard deviation Asset A is…
A: The following information has been provided in the question: Expected return of A= 9% Expected…
Q: A businessman bought a used building and found that the roof insulation was insufficient. He…
A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…
Q: Suppose you buy a Me $2.50 which matures in with a strike price of $5 currently trading at $51 stock…
A: The following information has been provided in the question: Cost of put= $2.50 Strike price =$50…
Q: Mr. Espinoza's debt of P160,000 is amortized by making equal payments at the end of every three…
A: Since you have posted a question with multiple subparts, we will solve first three subparts for you.…
Q: FACTORS i
A: Portfolio refers to the collection of all the financial instruments such as bonds, commodities,…
Q: What will be TapDance’s WACC?
A: The formula to compute WACC is shown below: = Weightage of debt × cost of debt × ( 1- tax rate) +…
Q: ect all of those that are correct: A) prices of zero coupon bonds increase as the time to maturity…
A: Zero coupon bonds are those bonds which do not pay any coupon payment but pay the face value on the…
Q: Peter purchased a furniture set with 15% downpayment and end-of-month payments of $80 for 4 years at…
A: Purchase price refers to the amount of money that someone should pay for buying something like a…
Q: If risk free rate is 2%, market risk premium (also called the equity risk premium) is 5%, and a…
A: Cost of equity is the cost in percentage that is used to raise the company’s equity funds.
Q: A company deposited $5,500 into an investment fund at the beginning of every quarter for 6 years. It…
A: Solution:- When an equal amount is deposited each period at beginning of period, it is called…
Q: A6) Finance In financial economic theory, an indifference curve shows: Select one: a. the one most…
A: Financial economics used to analyze the usage as well as distribution of the resources in the…
Q: Berta, Inc., currently has an EPS of $2.31 and an earnings growth rate of 6 percent. The benchmark…
A: Given: EPS at 0 time=$2.31 growth rate=6% Benchmark P/E ratio=25 To find: Target share price four…
Q: What is the amount generated by a capital of $10,000 applied to compound interest for the following…
A: Solution:- When an amount is invested somewhere, it earns interest. The amount invested at beginning…
Q: An investment will provide you with $100 at the end of each year for the next 10 years. What is the…
A: Time period is 10years Discount rate is 8% Annuity amount per year is $100 To Find: Present Value…
Q: A key driver of shareholder value is the aggregate value of the customer base. Classify the major…
A: A customer base is a collection of customers to whom a company promotes and sells its goods or…
Q: National Corporation is expecting their sales to decline due to the increased interest is disposable…
A: Given, The Growth rate is -4% Dividend paid last year is P1.80 per share Required rate of return is…
Q: What is the difference between a mortgage bond and a convertible bond?
A: Mortgage bond: A mortgage bond (also known as a secured bond) is a corporate bond that is secured by…
Q: he YIM on a bond is the interest rate you earn on your investment if interest rates don't hange. If…
A: As per the information provided: Annual coupon bond - $825 Coupon rate - 8.4% Years to maturity - 8…
Q: Finance 34.Assume that an investor purchased 1 share of XYZ Ltd last year for $36.86 and this year,…
A: Call option is a derivative contract that gives the buyer the right but not the obligation to buy…
Q: Marcus has won a $6,000,000 state lottery. He can take his prize as either 15 yearly payments of…
A: State Lottery amount= $ 6,000,000 Marcus has won this lottery amount.So, that option which gives…
Q: Use the unpaid balance method to find the finance charge on the credit card account. Last month's…
A: Unpaid balance method is the method in which finance charge is calculated on the previous balance…
Q: My brother just charged his friend $600 for offering a bet: if the temperature of tomorrow is above…
A: Data given: 1.Your brother charged his friend= $600 2.If the temperature of tomorrow is above 76,…
Q: Which of the following will most probably have the lowest WACC? 99% Debt, 1% Debt 100% Equity None…
A: The question is related to Capital Budgeting and cost of capital. The Weighted Average Cost of…
Q: Ivanna wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 5.4%…
A: Solution:- When an equal amount is saved each period at end of period, it is called ordinary…
Q: Assume you have a student loan that you will pay off in 10 years. How much will you save in interest…
A: Here first we need to calculate monthly payment at both original rate of 12% and new rate of 8%.If…
Q: How important is trade credit as a source of short-term financing?
A: Trade Credit is the largest use of capital by the business -to business sellers in the United…
Q: One major risk of engaging in global trade is that as national economies continue to integrate, an…
A: Global trade is one of the important type of business, which can be engaged for generating finance…
Q: Card
A: Discover refers to the customer credit card brand which is known for the purpose of cashback…
Q: Suppose the following bond quote for IOU Corporation appears in the financial page of today's…
A: Face value - $ 2000 Coupon rate – 7.40% Maturity – April 15,2023 Current price - $ 92.928 YTM-…
Q: Assume a company has 10 million of total assets: the market value of equity is 8 million and market…
A: The Weighted Average Cost of Capital(WACC) refers to the financial ratio that provides the overall…
Q: Describe the three methods used to ensure that funds are available to redeem corporate bonds at…
A: Debt instruments issued by private and public businesses are known as corporate bonds. Companies…
Q: old's Gym wants to offer its clients a monthly payment option on its annual membership dues of $490.…
A: Annual membership can be converted into monthly membership depending the on period and interest rate…
Q: Decreasing the number of years of a loan decreases the amount of interest repaid over the term of…
A: a) Calculation of monthly payment for 30 year loan EMI Calculation formula= (P * R *…
Q: b. In a different economy, vault cash is $1000000, deposits by depository institutions at the…
A: Money multiplier: The highest limit to which the money supply may be altered by changes in the…
Q: Enterprise, Inc. bonds have an annual coupon rate of 9 percent. The interest is paid semiannually…
A: Given: Coupon rate=9% Par value=$1000 Yield to maturity=16% Duration =13 years To find: Value of…
Q: Compute the IRR statistic for Project E. The appropriate cost of capital is 9 percent. (Do not round…
A: IRR refers to the internal rate of return. It is an important capital budgeting tool that is used to…
Q: You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, &…
A: Last year's sales = $300Sales growth rate = 40%Forceasted sales = $300 + 40% = $420Change in sales =…
Q: change Whenever the percentage in EBIT due to percentage change in sales is is lower lower than the…
A: Leverage is the technique of risk evaluation in a business. There are three type of leverage…
Q: The following information for particular project: using the S.A (Sensitive Analysis) to show is the…
A: Net present value(NPV) is the difference between present value of all cash inflows and initial…
Q: A retail coffee company is planning to open new coffee 95 outlets that are expected to generate…
A: Solution:- Net Present Value (NPV) means the net value in today’s terms after adjusting initial…
Q: Use the unpaid balance method to find the finance charge on the credit card account for August. The…
A: Finance charge It is basically the interest charge on the unpaid balance. With unpaid balance (P),…
Q: Two years after a person put $25,000 in a savings account that paid semiannually compounded interest…
A: Solution:- When an amount is invested somewhere, it earns interest. The amount invested at beginning…
HaidiKho Allams has 1,750,000 shares of authorized common stock, each having a $1 par value. Over the years, it has issued 1,532,000 share
1.) What would be its common stock after the financing?
Format: 1,111,111
2.)What would be its additional paid-in capital accounts after the financing?
Format: 11,111,111
Step by step
Solved in 2 steps
- Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.
- Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?
- Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting journal entry would include which of the following? A. a credit to common stock B. a credit to cash C. a debit to paid-in capital in excess of preferred stock D. a debit to cash