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- GoBank is a FinTech company, it is a Banking Ap. people helps you budget better, takes the stress out of spending abroad, and even lets people earn interest on your savings. In 2021, GoBank had a net income of $1,712,500.00. The company had 300 000 shares of $4 par value common stock and 25 000 shares of 8%, $100 par, preference stock outstanding throughout the year. Each share of preference stock is both cumulative and convertible. Each share of preference stock is convertible into four shares of common stock. Compute the following for 2021: a. Basic Earnings per share? b. The number of shares to be used in computing the diluted earnings per shareAdobe is a software company that creates the most innovative creativity apps. Recently their software has become cloud-based. Their price to book ratio is 1.67 and they currently have 1,000,000 shares outstanding. Below you will find an excerpt from their balance sheet for 2019 Calculate the stock price using the price to book ratio. If their stock price is listed on the stock market at $9, should the stockholders sell or hold the stock? Critically discuss the price to book ratio in valuing stocks and provide an alternative method to see if a stock is undervalued or overvalued.Hello, i have posted this question many times in chegg, but every time people answering this question to use ai tool like chatgpt, please dont use gpt and other ai tool. Provide me original answers with proper explanations. thank you. You are investing $8,000 in a mutual fund that charges a 4.50 percent front-end load. The offering price is $24.70 a share. What will your investment be worth immediately after your shares are purchased?
- You have been hired as a financial analyst in a consulting firm which primary deals with financial institutions to provide services related to mergers and acquisitions of businesses.As your first project you have been teamed up with a division in your company which specialize in investment appraisals and currently have following tasks in hand: ⦁ Fintech corporation (a long term client) need advice based on higher dividend payout as it is considering to invest in stocks and have following couple of options: RUBIK LLC : Share is currently trading at $56 with expected growth rate of 6% , whereas investor’s required rate of return is 9 % . WOODWORKS LLC : Share is currently trading at $23 with expected growth rate of 2.5% , whereas investor’s required rate of return is 9 % (same as above). You are expected to calculate dividend per share by Divided Growth Model for RUBIK and WOODWORKS.You invest $1,500 into a "hot stock" through the Robin Hood app. The stock does well in the first quarter and in the second quarter. At the end of the second quarter, the stock's value is $2,250 and you buy another $1,000 worth of shares. At the end of the year, your shares are now worth $3,300. What is your money-weighted return? State your answer as a raw number, not in decimal form (i.e. 13.21 not 0.1321) with two decimal places.Suppose Your Company where you work as Finance Director is Financed by both debt (bonds) and equity (shares). In the Board Meeting, it was agreed that you needed to raise extra funds for capital Expenditure ($1 Million). Since your company is listed on the Lusaka Stock Exchange, you sold 400 worth of bonds at $1,000 each at 5% coupon rate (A total of $400,000 raised). The company further issued stocks (shares) totaling 6,000 at $100 each with an expected return of 6% (cost of equity). The company therefore managed to raise the required amount of $1, 000,000 for the desired capital expenditure. Assume Corporate Tax Rate is 35% REQUIRED: Calculate the Weighted Average Cost of Capital (WACC) for your company
- An investment club has set a goal of earning 15% on the money it invests in stocks. The members are considering purchasing three possible stocks, with their cost per share (in dollars) and their projected growth per share (in dollars) summarized in the following table. (Let x = computer shares, y = utility shares, and z = retail shares.) Stocks Computer (x) Utility (y) Retail (z) Cost/share 30 44 26 Growth/share 6.00 6.00 2.40 (a) If they have $392,000 to invest, how many shares of each stock should they buy to meet their goal? (If there are infinitely many solutions, express your answers in terms of z as in Example 3.) (x, y, z) = (b) If they buy 1500 shares of retail stock, how many shares of the other stocks should they buy? computer shares utility shares What if they buy 3000 shares of retail stock? computer shares utility shares (c) What is the minimum number of shares of computer stock they should…Formulate a system of equations for the situation below and solve. A private investment club has $400,000 earmarked for investment in stocks. To arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high-risk, medium-risk, and low-risk. Management estimates that high-risk stocks will have a rate of return of 15%/year; medium-risk stocks, 10%/year; and low-risk stocks, 7%/year. The members have decided that the investment in low-risk stocks should be equal to the sum of the investments in the stocks of the other two categories. Determine how much the club should invest in each type of stock if the investment goal is to have a return of $40,000/year on the total investment. (Assume that all the money available for investment is invested.) high-risk stocks $___ medium-risk stocks $___ low-risk stocks $ ___Looking up a stock tip on Yahoo Finance that you received from your friend Lenny, you came across Cisco Incorporated. Reviewing their financials, you see that they paid $2.2 million in common stock dividends with only 10 million shares outstanding. Out of the $35 million in stockholder’s equity $4.8 million was retained earnings. You feel that the price of the stock in the market today is reasonable at $9.00 per share. But Lenny always told you that you needed to figure out these four ratios before investing in any stock. So, you need to calculate: A) P/E Ratio. B) Book Value Per Share. C) Earnings Per Share. D) Market to Book Ratio.
- Imagine yourself as a financial manager in a company, and you are requested to provide a financial report including the calculation of the current market rate of return from the investor's perspective for each of the four investment options, taking into consideration the followings: Common stocks available for investment are: 2,500,000 shares of common stock, with a par balance of $1 per share. The current market value of the common share is $24.43 per share. Annual earnings per share $1.95. Bonds available for investment $1,750,000 bonds (A) with an interest of 6.25%, with a current market value of $104 per bond (price of $104 per $100). $2,250,000 Notes B, with an interest rate of 5.75%, with a current market value of $94.50 (price $94.50 per $100 note). The corporate tax rate is 35%. Preferred shares available for investment 950,000 outstanding preferred shares with a par value of $10 with a preferential dividend payment…how to implement penny stock Strategy for stock market portfilo when you invest 25,000$?Suppose Your Company where you work as Finance Director is Financed by both debt (bonds) and equity (shares). In the Board Meeting, it was agreed that you needed to raise extra funds for capital Expenditure (Kn1 Million). Since your company is listed on the Lusaka Stock Exchange, you sold 400 worth of bonds at Kn1,000 each at 5% coupon rate (A total of Kn400,000 raised). The company further issued stocks (shares) totaling 6,000 at Kn100 each with an expected return of 6% (cost of equity). The company therefore managed to raise the required amount of Kn1, 000,000 for the desired capital expenditure.Assume Corporate Tax Rate is 35%REQUIRED:Calculate the Weighted Average Cost of Capital (WACC) for your company-
