Using the equity stake equation, if a business owner needed to raise $250,000 in equity and the company is worth $1,000,000, how much (what percentage) of the company would the owners have to give up if the growth rate is 15% and they expect to completely sell out in 5 yea
Q: emainin
A: First, calculate the percentage of vehicles used for business and personal purposes:
Q: What is the cost of goods sold? SHIN Industries uses the average cost approach to- account for its i...
A: The cost of goods sold is calculated as cost of goods available for sale minus cost of ending invent...
Q: On January 1, Lincoln Corp. issued $3,000,000, 11% bonds for $3,195,000. The market rate of interest...
A: Carrying amount of bonds = Issue price of the bonds - Premium amortized Cash interest paid= Face val...
Q: Department W had 2,940 units, one-third completed at the beginning of the period; 13,800 units were ...
A: Formula: The Total number of units to be assigned cost = Beginning units + Units completed and start...
Q: You are assigned to prepare the financial statements of LIVA Company for the year 2021. The followin...
A: Average Cost Method: The average cost technique gives a cost to inventory items based on the overall...
Q: How much is the budgeted balance for Accounts Payable at October 31, 2022?
A: Account payable means the amount owed by business to outsider for the goods received and services r...
Q: explain the difference between operating budgets and capital expenditure budget
A: A budget, which is used by governments, businesses, and individuals, is an estimate of revenue and e...
Q: Winston Company had two products code named X and Y. The firm had the following budget for August: ...
A: Budgeted units = Budgeted sales / Selling price per unit Contribution margin per unit = Budgeted Con...
Q: Instructions: Whittier Company plans to sell 1,000 mowers at $400 each in the coming year. Total var...
A: Solution.. Sales price per unit = $400 Variable cost per unit = $325 Fixed cost = $45,000 Con...
Q: Sheridan Tool Company’s December 31 year-end financial statements contained the following errors. ...
A: Solutions: A)Total Effect of errors on 2021 Net income Understatement of 2020 ending inventory ...
Q: sold? IJUN Company sells five kinds of products and reports its inventory at Lower of Cost and Net R...
A: Inventory is values at cost of realizabe value which ever is lower, but the same is understood by pr...
Q: Let's try these: Prepare the journal entries for the following transactions: July 1- Mr. Bon Hok wit...
A: Partnership firm is a corporate structure where two or more persons come together to share profits o...
Q: 00. The following information is ma Product B Product C Proc P1,650,000 P1,700,000 P1,50 825,000 780...
A: Cost of goods sold refers to the expenses involved while the goods or services provided by the compa...
Q: The following are various cash flows and other information for Smyczek Company: a. Payments of inter...
A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the so...
Q: At the beginning of 2020 Max company issued 10% bonds with a face value of 900,000. These bonds matu...
A: Coupon rate = 10%/2 = 5% Market rate = 12%/2 = 6% Number of periods = 5*2 =10 Interest paid = Face v...
Q: Presentation) On January 1, 2022, Cage Company contracts to lease equipment for 5 years, agreeing to...
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three sub-pa...
Q: geted al o ctec ctec rear, s pr ct m et la ct la emb ishir nine emb ishir - dep
A:
Q: One advantage of switching from a partnership to the corporate form of organization is the following...
A: It makes it easier for the firm to raise additional capital
Q: What is the gain from change in fair value due to physical change on December 31, 2020? AJUMA Farms ...
A: Biological assets refer to the assets which are in living state, be it animals or plants owned by th...
Q: discuss experience of learning from different social, cultural, economic and demographic backgrounds...
A: Answer: Learning is the process of growth in various forms. It is the running process of life. Learn...
Q: The interest rate written in the terms of the bond indenture is known as the 14 Select one: O a. cou...
A: Solution Concept The rate stated in the bond instrument is called the stated rate Coupon rate means...
Q: Gil Co. purchased four items of inventory at a bulk price of P9,000,000. The fair value of each item...
A: Cost to be allocated to Inventory = Bulk price X fair value of individual inventory / Total fair val...
Q: Thank you, but now, the total current assets is incorrect..
A: Solution Concept In a balance sheet there are two sides assets and liabilities+ equity Balance sheet...
Q: Lanson Corporation Co's trial balance included the following account balances at December 31, 2021: ...
A: Current Liabilities are those liabilities which are to be paid within 1 year from the Balance Sheet....
Q: ow much were the discounts lost? epson Company is specializing on sale of printers and related gadge...
A: Solution Concept Discount term 3/10 net 30 means that if the payment is made within 10 days of invoi...
Q: Use the information below for Privett Company to answer the questions that follow. Privett Compa...
A: Working Capital = Total current assets - Total current liabilities
Q: When the effective interest method is used, the amortization of the bond premium decreases interest ...
A: Lets understand the basics. For amortization of premium and discount, there are two methods which ar...
Q: Calculation of Ga
A:
Q: P21.6 (LO 2, 3) (Lessee-Lessor Entries, Lease with a Guaranteed Residual Value) Glaus Leasing AG agr...
A: A lessee(Seller) is the person who leases the Asset to the lessor(Buyer) for a particular time and o...
Q: Data concerning Lancaster Corporation's single product appear below: Per Unit Percent of Sales Selli...
A: Net operating income is a method used by real estate professionals to determine the exact value of r...
Q: Under the effective-interest method of bond discount or premium amortization, the periodic interest ...
A: Solution Concept Under the effective interest method , the bond is recognized using the pres...
Q: Activity Cost Activity Base Procurement $370,000 Number of purchase orders Scheduling Materials hand...
A: Formula: Activity rate for the scheduling activity cost = Scheduling activity cost / Number of produ...
Q: Calculate the capitalized cost of a project that has an initial cost of P3,000,000 and an additional...
A: Financial Management- Financial management refers to the process of controlling of the sources of fu...
Q: On January 1, 2022, State Co. sold an equipment to Nation Co. The latter issued a five-year P500,000...
A: Present value of the Note = Present value of principal + Present value of interest payments where, ...
Q: Transactions for the Flounder Company, which provides welding services, for the month of June are pr...
A: Flounder company provides Welding services. The question requires to provide the journal entries for...
Q: 3. Assume the company uses absorption costing and a FIFO inventory flow assumption (FIFO means first...
A: Using FIFO method, goods produced first are to be sold first and using LIFO method, goods produced l...
Q: View Policies Show Attempt History Current Attempt in Progress Blue Limited uses a perpetual invento...
A: Inventory valuation is an important activity that has to be undertaken by the businesses involved in...
Q: O O O O O Section 1: General Information X GIn the three-stage mpairm QLSfelWr2G3Yy-WzMesbLH8bwuZF1c...
A: Present value of the note= Present value of principal + Present value of interest payments where, ...
Q: Salaries and wages payable $1,700 Notes payable (long-term) $1,700 Salaries and wages expense 51,800...
A: Formula Used for calculating Income statement: Net income = Total Revenues - Total Expenses
Q: IJUN Company sells five kinds of products and reports its inventory at Lower of Cost and Net Realiza...
A: Valuation of Inventory: Inventory valuation is an accounting process used by businesses to determine...
Q: Silver Lining Inc. uses the perpetual inventory method to account its silver purchases. They use ave...
A: Simple Average Price Method: Under this method, materials issued are valued at average price, which...
Q: Merlyn Company has the following budgeted variable costs per unit produced: DIRECT MATRERIALS $5....
A: A flexible budget is an estimation of the total cost based on the performance of the business.It inc...
Q: Assignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator%=&inprogress3Dfalse Complete ...
A: Production Cost report - It is report of production which contains the total cost, including operati...
Q: (Algo) Equivalent Units; Weighted-Average and FIFO Equivalent Unit Cost [LO 6-2, 6-3, 6-4, 6-5] Pabl...
A: A weighted average is a calculation that takes the relative importance of numbers in a data set into...
Q: On September 14, the petty cash fund needed replenishment and the following are the receipts: Auto E...
A: Journal entries are used to maintain track of financial transactions. To create a journal entry, you...
Q: Beauty Supplies Company manufactures and sells several ranges of artwork. The average revenue and co...
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods...
Q: Mixing Company manufactured 1,716 units of its only product during 2022. The inputs for this product...
A: Computation of the partial financial productivity of material H in the 2022 as follows:
Q: A company manufactures and sells a single product. Budgeted data per unit of the product is: $ per ...
A: Using variable costing, fixed production cost is treated as period cost and is to be expensed in the...
Q: 12,500 b. 18,375 10,000 21,875 18,375 18,750 49,500 22,250 22,250 12,500 а. с. 21,875 d. 31,250
A: 1. Capital of A and B are in excess of average investment. So, firm will pay interest to A and B on ...
Q: Kula Company Ltd manufactures two products, Flora and Fauna. Estimates for the company's products fo...
A: Calculation of activity rates : Order Processing = Order processing costNumber of order processed =...
Using the equity stake equation, if a business owner needed to raise $250,000 in equity and the company is worth $1,000,000, how much (what percentage) of the company would the owners have to give up if the growth rate is 15% and they expect to completely sell out in 5 years?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Using the equity stake equation, if a business owner neeeded to raise $250,000 in equity and the company is worth $1,000,000, how much (what percentage) of the company would the owners have to give up if the growth rate is 15% and they expect to completely sell out in 5 years?A company’s common stock is currently selling at $40 per share. Its most recent dividend was $1.60, and the financial community expects that its dividend will grow at 10% per year in the foreseeable future. What is the company’s equity cost of retained earnings? If the company sells new common stock to finance new projects and most pay $2 per share in flotation costs, what is the cost of equity? Be sure to include your work for all calculations.IBM expects to pay a dividend of $6 next year and expects these dividends to grow at 3.92% a year. The price of IBM is $75 per share. What is IBM's cost of equity capital?
- Boston Company has just paid dividends of $2.5 per share, which the company projects will grow at a constant rate of 5 percent forever. If Boston Company’s shareholders require 15 percent rate of return, what is the price of its common stock? Can you show the excel formula?crane Inc. common chairs currently sell for $30 each. The firms management believes that it's share should really sell for $54 each. If the firm just paid an annual dividend of two dollars per share and management expects those dividends to increase by 8% per year forever, and the common knowledge to the market. What is the current cost of common equity for the firm?BM expects to pay a dividend of $8 next year and expects these dividends to grow at 3.15% a year. The price of IBM is $67 per share. What is IBM's cost of equity capital?
- Anderson Motors, Inc. has just set the company dividend policy at $0.60 per year. The company plans to be in business forever. What is the price of this stock if a. an investor wants a return of 4%? b. an investor wants a return of 7%? c. an investor wants a return of 10%? d. an investor wants a return of 11%? e. an investor wants a return of 17%?A firm is expected to have free cash flow of $4 million next year, after that it will grow at 5% forever. The equity cost of capital of the firm is 12% while the weighted average cost of capital is 10%. The firm has $1 million cash, $6 million debt, and 5 million shares of stock. (a) What should be the enterprise value of the firm? (b) What should be the stock price per share?Compute the total and annual return on the following investment. Three years after paying $3400 for shares in a startup company, you sell the shares for $2100 (at a loss). The total return is %?
- As the winner of a contest, you are now CFO for the day for Maguire Inc. and your day's job involves raising capital for expansion. Maguire's common stock currently sells for $45.00 per share, the company expects to earn $2.75 per share during the current year, its expected payout ratio is 70%, and its expected constant growth rate is 6.00%. New stock can be sold to the public at the current price, but a flotation cost of 8% would be incurred. By how much would the cost of new stock exceed the cost of common from reinvested earnings? Group of answer choices 0.09% 0.56% 0.19% 0.84% 0.37%If the price per share of a company is $500, the current dividend (just paid) is $50 per share, that dividend is expected to grow at 5% per year and with no stock issuance cost, then the cost of financing new projects with stock issuance for that company is (A.E. annual effective):