If Genie went ahead with the acquisition of Aladdin, what is the total value of the acquisition? ( What is the maximum price per share that Genie should be willing to pay for this acquisition? 3)If Genie decided to go ahead with the cash acquisition, what will be its price per share after the acquisition?
Q: Penny's direct material cost is $3 per unit. The direct labor rate is $11 per hour and each units…
A: The cost of goods sold includes the cost of goods that are sold including variable and fixed…
Q: Maria Am Corporation uses the weighted-average method in its process costing system. The Baking…
A: The total cost to be accounted is the sum of cost in beginning work in process inventory and the…
Q: Given the stated fair values, if Rowe were to sell one-half of her interest in capital to someone…
A: You have asked multiple questions under a single question but we can provide under a single solution…
Q: Exercise 8-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $321,165 for real…
A: The lump sum paid to acquire multiple assets is allocated to various assets on the basis of their…
Q: The X-cell Inc. company has the following purchases and sales during the year ended December 31,…
A: Given that, Beginning inventory = 400 units at $60/unit Selling price per unit = $95 Total units…
Q: The equipment reverts back to the lessor at the end of the lease term. How much is interest expense…
A: The lease agreement is a contract between the two parties in which one party rents it assets to the…
Q: Movieplex, a large movie theater chain, leases most of its theater facilities. In conjunction with…
A: Depreciation Depreciation is the term used in accounting to describe how an asset's value diminishes…
Q: Games Co. has eight employees, each of whom earns $3,500 per month. Income taxes are 20% of gross…
A: Gross Pay: Gross pay is the amount an employee receives for their work that has not had any…
Q: On January 1, 2012, Horizon Group sold property carried in inventory at a cost of P1,470,000 for…
A: installment method is method of revenue recognition in which gross profit is deffered until the…
Q: Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price…
A: Depreciation is the reduction in the value of asset due to its use, wear and tear. There are…
Q: Treasury stock that had been purchased for $3,908 last month was reissued this month for $5,262. The…
A: Introduction: A journal entry is a record of a business deal in the accounting system of the…
Q: What is involved in the legal requirements of financial governance? Select an answer: having a…
A: According to the given question, we are required to find out the correct option from the available…
Q: Budgeted S&A Expenses Salary expenses Sales commissions, 5% of sales Insurance expenses Rent…
A: Answer:- Budgeted meaning:- A budget is basically a forecast of revenue and spending for a given…
Q: Parker Corp., which operates on a calendar year, expects to sell 5140 units in January and expects…
A: Budgeted revenues for a month are computed from the unit sales and the sales price prevailing for…
Q: At December 31, Hawke Company reports the following results for its calendar year. Cash sales $…
A: Introduction: Adjusting entries are made at the books of accounts to more accurately reflect your…
Q: Mr. Lion, who is in the 37 percent tax bracket, is the sole shareholder of Toto Inc., which…
A: Note: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Superior Company provided the following data for the year ended December 31 (all raw materials are…
A: The statement of cost of goods manufactured includes the total cost of goods that are manufactured…
Q: 6. If 91,000 pounds of raw materials are needed to meet production in August, what is the estimated…
A: Morganton Company makes one product. Based on the data given to prepare the master budget, we need…
Q: Thomas Martin receives an hourly wage rate of $18, with time and a half for all hours worked in…
A: Introduction: The sum of an employee's paycheck that is left over after payroll deductions such as…
Q: Required: Items 1 through 5 represent activities that will be reported in Del Conte's statement of…
A: Cash flow statement is a financial statement that records all the cash transactions, cash inflows…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: Under the units-of-production method or activity method the yearly depreciation is calculated based…
Q: A. Muharraq Industrial Co. purchased a Tradename for $ 240,000 on July 1, 2021. The Trademname is…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: This year, Sigma Incorporated generated $686,250 income from its routine business operations. In…
A: Section 1231 Gain/losses: Real estate or depreciable business equipment held for more than a year is…
Q: output-specifically, to 3. Assign costs to the department's the units transferred out and to the…
A: In this Case, the company is using weighted average process costing and it has two production…
Q: Bright Star Incorporated is a job-order manufacturer. The company uses predetermined overhead rate…
A: Introduction: Cost refers to the money spent to create and sell goods or services, or to acquire…
Q: anu has forecast sales to be $129900 in February, $159900 in March, $163400 in April, and $177000kn…
A: Cash receipts refer to the amount that is received in against of sale of goods or services. It is…
Q: Common shares, unlimited shares authorized; 4,400,000 shares issued and outstanding Retained…
A:
Q: What are the factors that determine whether the company should use cash acquisition or stock…
A: Cash Acquisition refers to the acquisition or proposal by one company to another company to buy…
Q: st Company uses a normal, process costing system to determine product cost. The company es the…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: The following information applies to the questions displayed below.] Ramirez Company installs a…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: Shadee Corporation expects to sell 520 sun shades in May and 430 in June. Each shade sells for $165.…
A: A budget is an estimation of income and expenditures on the basis of past performance or industry…
Q: what are 5 legal standards/rules that are related to the extractive industries that can advance…
A: 5 legal standards/rules that are related to the extractive industries that can advance sustainable…
Q: A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a…
A: A Cash budget represents the expected future cash flow of an organization over a defined period of…
Q: Sport Box sells a wide variety of sporting equipment. The following is information on the purchases…
A: Answer :FIFO (First in first out) = In this method it is assumes that the oldest products have been…
Q: On April 1, 2020, C'est Cheese issues 20,000 shares of 4%, $10 par, cumulative preferred stock $15…
A: Depreciation indicates the reduction in the historical amount of tangible assets with the passage of…
Q: The assets and liabilities of a company are $86,140 and $45,483, respectively. Stockholders' equity…
A: All the transactions of business are based on accounting equation of the business. The accounting…
Q: A company's master budget for October is to manufacture and sell 31,600 units, for a total sales…
A: The variance is the difference between the actual data and standard output of the production. The…
Q: Rings Company has three product lines, A, B, and C. The following financial information is…
A: Operating income is the income generated by daily business operations. The operating income refers…
Q: On July 23 of the current year, Dakota Mining Company pays $7,398,720 for land estimated to contain…
A: Purchase of Land: Land acquisition is the power of the union or a state government in India to…
Q: The actual margin per unit and margin per unit estimated in the plan are $6 and $8, respectively.…
A: The margin variance is computed by deducting the actual margin from the budgeted margin. The formula…
Q: 1. Development of accounting rules.
A: Accounting rules are statements that guide and explain how to record accounting transactions. As per…
Q: Mark the correct statements [ ]Lead time is the interval between when an order is placed and when…
A: Inventory Management: Businesses may decide which goods to order when and in what amounts by using…
Q: Integrity Company has the following information: Unsecured creditors…
A: Free assets means assets which is free from all unencumbered. We can calculate free assets by fair…
Q: Which one of the lease conditions below is not met?
A: A lease is an agreement, where one party transfers the right to use the asset to another person, in…
Q: Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31.…
A: Every business organization's are required t maintain the capital expenditure budget so as to run…
Q: 4. Assuming direct labor is a fixed cost: a. Determine the number of WVD drums (if any) that should…
A: CVP or marginal costing is the ascertainment of marginal costs and of the effect on profit of…
Q: Test Company uses a normal, process costing system to determine product cost. The company uses the…
A: The process costing can be defined as costing of products processed in their respective departments.…
Q: The directors of Brisbane Ltd are considering an investment in new machine. The details of the…
A: Net Present Value :— It is the sum of all present value of future cash flows.
Q: 1 Washington Inc. just paid a dividend of $2.15 per share on its stock. The dividends are expected…
A: Current Share Price: The price at which a share of stock or any other asset was last traded is…
Q: Morganton Company makes one product and it provided the following information to help prepare the…
A: The budgets are prepared to estimate the requirements during the period. The sales budget is the…
- If Genie went ahead with the acquisition of Aladdin, what is the total value of the acquisition? (
- What is the maximum price per share that Genie should be willing to pay for this acquisition?
3)If Genie decided to go ahead with the cash acquisition, what will be its price per share after the acquisition?
Step by step
Solved in 4 steps
- Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture of office supplies. To be able to assess the financial capabilities of the company, Mike has been given the companys financial statements for the 2 most recent years. Required: Note: Round all answers to two decimal places. 1. Compute the following for each year: (a) return on assets, (b) return on stockholders equity, (c) earnings per share, (d) price-earnings ratio, (e) dividend yield, and (f ) dividend payout ratio. 2. CONCEPTUAL CONNECTION Based on the analysis in Requirement 1, would you invest in the common stock of Kepler?4. Prenda Inc. reported a net income of P750,000. The company has 250,000 shares of common stock and it is currently trades at P45 per share. The company continue to expand and anticipates that one year from now, its net income will be P1,250,000. Over the year, the company anticipates issuing additional 100,000 shares of stock, so that one year from now the company will have 350,000 shares of commons stock. Assuming the company’s price/earnings ratio remain at its current level, what will be the company’s stock price one year from now? 5. You are considering the purchase of Pasaha Company stock. You anticipate that the company will pay dividend of P2.25 per share next year and P2.50 per share the following year. You believe that you can sell the stock for P18.50 per share two years from now. If your required rate of return is 12.5%, what is the maximum price you would pay for a share? 6. You are considering to purchase of Havana Company Stocks. The firm has just paid a dividend of…Please provide answer to below three requirements Question: Lava Lamps Inc. had $800 million in earnings before interest and taxes last year. It has just acquired a 50% stake in General Lamps Inc., which had $400 million in earnings before interest and taxes last year. Because Lava Lamps has a major- ity active stake, it has been asked to consolidate last year's income statements for the two firms. a. What earnings before interest and taxes would you see in the consolidated statement? b. If both firms have a 5% stable growth rate, a 10% cost of capital, a 40% tax rate, and a return on capital of 11%, estimate the value of equity in Lava Lamps. c. How would your answer change if you were told that General Lamps has a 9% cost of capital and a 15% return on capital?
- Ferrell Inc. recently reported net income of $8 million. It has 710,000 shares of common stock, which currently trades at $57 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $13.6 million. Over the next year, it also anticipates issuing an additional 248,500 shares of stock so that 1 year from now it will have 958,500 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its current level, what will be its stock price 1 year from now? Do not round intermediate calculations. Round your answer to the nearest cent.1. Over the years, Masterson Corporation’s stockholders have provided $34,000,000 of capital when they purchased new issues of stock and allowed management to retain some of the firm’s earnings. The firm now has 2,000,000 shares of common stock outstanding, and the shares sell at a price of $28 per share. How much value has Masterson’s management added to stockholder wealth over the years, that is, what is Masterson’s MVA? 2. Barton Industries has operating income for the year of $3,500,000 and a 36% tax rate. Its total invested capital is $20,000,000 and its after-tax percentage cost of capital is 8%. What is the firm’s EVA? 3. Laiho Industries’s 2017 and 2018 balance sheets (in thousands of dollars) are shown.2018 2017Cash $102,850 $ 89,725Accounts receivable 103,365 85,527Inventories 38,444 34,982Total current assets $244,659 $210,234Net fixed assets 67,165 42,436Total assets $311,824 $252,670Accounts payable $ 30,761 $ 23,109Accruals 30,477 22,656Notes payable 16,717…Brenda Limited has an enterprise value of $10 million, total debt of $4 million and 2 million shares outstanding. The latest balance sheet of the firm reports assets worth $8 million. The per-share market value of the equity is: Select one: a. $2.00 b. $3.00 c. $4.00 d. $5.00
- Simpson Department StoreSimpson Department Stores operates retail department store chains throughout the United States. At the end of Year 10, Simpson reports debt of $5,897 million and common shareholders' equity at book value of $4,400 million. The market value of its common stock is $6,895, and its market equity beta is 0.79. An equity buyout group is considering an LBO of Simpson as of the beginning of Year 11.The group intends to finance the buyout with 25 percent common equity and 75 percent debt carrying an interest rate of 10.65 percent.Regarding the equity buyout, compute the cost of equity capital with the new capital structure that results from the LBO. Assume a risk-free rate of 3.75 percent and a market risk premium of 5.0 percent. Round your answer to three decimal places. Cost of Equity Capital is _______________________________Ferrell Inc. recently reported net income of $8 million. It has540,000 shares of common stock, which currently trades at $21 a share. Ferrell continuesto expand and anticipates that 1 year from now its net income will be $13.2million. Over the next year, it also anticipates issuing an additional 81,000 shares ofstock so that 1 year from now it will have 621,000 shares of common stock. AssumingFerrell’s price/earnings ratio remains at its current level, what will be its stock price1 year from now?3. In December 2020, Nachil Co. had a share price of AED 60. They had 32 million shares outstanding, a market-to-book ratio of 10. In addition, Nachil had AED 250 million debt, AED 65 million in net income, AED 48 million in retained earnings, AED 637 in sales. Calculate P/E ratio and ROE according to Du Pont system.
- Babel Co. a publicly listed company, reported earnings for the year amounting to Php 25 million with outstanding shares of 1 million. The market value per share of Babel Co. is Php 122. What is the P/E Ratio of Babel Co. (round your answer to the nearest ones)? Suppose that Babel Co. sets as the industry leader, Vincenzo Co., another player in the same industry are being eyed by an investor. The reported EPS of Vincenzo Co. is Php 10. If the investor is aware of the Babel Co.’s performance, how much should the investor value Vincenzo Co.?Please answer this two problems and provide complete solutions in good accounting form. Thank you! 1. Kremlin Company reported the following shareholders' equity at year-end: Share capital, P30 par value, P3,000,000; Share premium, P600,000; Retained earnings, P4,200,000. A 20% share dividend was declared and distributed at year-end when entity's share was selling at P65. What amount should be reported as share capital outstanding? 2. Victory Company issued 8,000 ordinary shares with P200 par value and 20,000 preference shares with P200 par value for a total consideration of P7,500,000. At the date of issue, the ordinary share was selling for P360 and the preference share was selling for P270. What is the share premium from the issuance of ordinary shares?1. Flubber Products has current assets of $60,000 and total assets of $340,000. The firm’s sales are $700,000. Flubber’s interest expense is $25,000. All assets are classified as being either current assets or fixed assets. Flubber’s fixed asset turnover is 2. Milton Data Service just paid a dividend of $4.00 per share on its common stock. The dividend is expected to grow at 4% per year forever. Milton has net working capital of $500 million. Currently, the risk-free rate is 5%, the required market return is 10%, and Milton has a beta of 1.4. a. What should be the current market price per share (i.e., the intrinsic value) of Milton stock? b. If the actual market price per share is $56, is Milton undervalued or overvalued? How much is the stock mispriced? 3. I’m Eating Restaurants is expected to pay a dividend of $5.00 per share on its common stock in one year. The dividend is expected to grow at 4% per year forever. Investors require a 12% rate of return on stocks with I’m Eating’s…