The quoted rate of a short-term government security is 2%. A premium of 3% is added to the risk-free rate to reflect the average market return. What is the required rate of return of the portfolio?
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The quoted rate of a short-term government security is 2%. A premium of 3% is added to the risk-free rate to reflect the average market return. What is the required
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- The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:Current Assets P195,000Land 1,320,000Building 660,000Equipment 525,000Total Assets P2,700,000Liabilities P525,000Ordinary Shares, P5 par 900,00Share Premium 825,000Retained Earnings 450,000Total Equities P2,700,000All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur’s outstanding shares for P3,000,000. The non-controlling interest is measured at fair value.Required:a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling interest is…Verne Corporation has sales of $90952, net income of $788170, total assets of $2039191, and 90952 shares of common stock outstanding. If Verne’s P/E ratio is 11, what is the company's current stock price?The company Flextseel provided the following information: Number of issued common shares 900,000 Net income $1,000,000 Number of authorized common shares 1,000,000 Weightrd average number of outstanding common shares, 800,000 Number of treasury shares, 100,000 How much is earnings per share (EPS)? $1.25 $1.43 $1.00 $1.11
- Analyse the information given in the table below and answer the questions below:Details Company A Company BShare price R60 R90Number of ordinary shares issued 10 000 000 10 000 000Market capitalisation 600 000 000 900 000 000Annual earnings R90 000 000 R120 000 000Earnings per share A BPrice/ Earnings (P/ E) Ratio C DREQUIRED:Please note that all theoretical answers should be in your own words and not directly from yourtextbook or any other source. Remember to add a list of resources (correctly referencedaccording to the Harvard method) at the end of your assignment. Calculate the missing amounts for A ‐ D.Round off your answers to 2 decimal places.You are given the following information: Stockholders’ equity !$3.75 billion, price/earnings ratio ! 3.5, common shares outstanding ! 50 million, and market/book ratio ! 1.9. Calculate the price of a share of the company’s common stockBramble Corp. had the following information in its financial statements for the years ended 2020 and 2021: Cash dividends for the year 2021$4900 Net income for the year ended 202197900Market price of stock, 12/31/208 Market price of stock, 12/31/2110 Common stockholders’ equity, 12/31/20999000 Common stockholders’ equity, 12/31/211196000 Outstanding shares, 12/31/21100900 Preferred dividends for the year ended 202114300 What is the rate of return on common stock equity for Bramble Corp. for the year ended 2021? A. 6.6% B. 7.0% C. 8.9% D. 7.6%
- he following partial information is taken from the comparative balance sheet of Levi Corporation: Shareholders’ equity 12/31/2024 12/31/2023 Common stock, $5 par; 38 million shares authorized; 33 million shares issued and 29 million shares outstanding at 12/31/2024; and _____________blank million shares issued and _____________blank shares outstanding at 12/31/2023. $ 165 million $ 145 million Additional paid-in capital on common stock 525 million 402 million Retained earnings 190 million 162 million Treasury common stock, at cost, 4 million shares at 12/31/2024 and 2 million shares at 12/31/2023 (65 million) (43 million) Total shareholders’ equity $ 815 million $ 666 million What was the average price (rounded to the nearest dollar) of the additional shares issued by Levi in 2024?Please remember common shares outstanding total 40,550 (000 omitted)What is the total stockholders' equity based on the following account balances? Common Stock $2260000 Paid-In Capital in Excess of Par 126000 Retained Earnings 566000 Treasury Stock 66000 $2128000. $2886000. $3012000. $2634000.
- The following information pertains to Benedict Company. Assume that all balance sheet amounts represent average balance figures.Total assets$300,000Stockholders' equity—common150,000Total stockholders' equity200,000Sales revenue100,000Net income25,000Number of shares of common stock6,000Common dividends5,000Preferred dividends7,000What is the return on common stockholders' equity ratio for Benedict?The following data are extracted from the shareholders' equity section of the statement of financial position of Del Corporation: Ordinary shares, P2 par value - Balance as of December 31, 2010; P1,000,000. Ordinary shares, P2 par value - Balance as of December 31, 2011; P1,020,000. Share premium - Balance as of December 31, 2010: P500.000. Share premium Balance as of December 31, 2011; P580,000. Retained earnings - Balance as of December 31, 2010; P1,000,000. Retained earnings - Balance as of December 31, 2011; P1,046,000. During 2011, the corporation declared and paid cash dividends of P150,000 and also declared and issued a share dividend. There were no other changes in shares issued and outstanding during 2011. What is the net income for 2011.The following partial information is taken from the comparative balance sheet of Levi Corporation: Shareholders’ equity 12/31/2024 12/31/2023 Common stock, $5 par; 23 million shares authorized; 18 million shares issued and 15 million shares outstanding at 12/31/2024; and _____________blank million shares issued and _____________blank shares outstanding at 12/31/2023. $ 90 million $ 75 million Additional paid-in capital on common stock 523 million 395 million Retained earnings 200 million 160 million Treasury common stock, at cost, 3 million shares at 12/31/2024 and 1 million shares at 12/31/2023 (75 million) (53 million) Total shareholders’ equity $ 738 million $ 577 million How many of Levi's common shares were outstanding on 12/31/2023?