What constitutes “significant influence” when an investor's financial interest is below the 50% level?

Q: If you can earn 13% percent on similar-risk investments, what is the most you would be willing to…

A: We will use the dividend discount model here. As per the dividend discount model the intrinsic value…

Q: If you can earn 13% on similar-risk investments, what is the most you would be willing to pay per…

A: Solution:- a) Considering 13% rate of investment for a dividend of $4.02 in 2020.D1 = 4.02k =…

Q: Why does the MM theory with corporate taxes lead to 100% debt?

A: The corporate taxes MM hypothesis proposes there are advantages to leverage inside a capital…

Q: If you were asked to compute the equity risk premium for Steel Products, using the historical…

A: Equity Risk Premium: It is the extra return or additional return that an investor is expected to…

Q: It is conceivable for a stock investor to gain as much as 50% in one year or lose 50% in one year.…

A: Case study: Example: In 2017, five stocks in S&P500 have risen by more than 50%  in one year…

Q: a. Calculate the price-earnings ratio in 2023 and 2024. b. In which year is the stock priced lower…

A: Price-Earnings Ratio: It is a financial ratio that is used in valuing the firm and measures the…

Q: In reviewing retirement portfolios, Kim determined the probability of a client owning stock is 0.50…

A: Given: Probability of owning stock P(S) = 0.50 Probability of owning Bonds P(B) = 0.40 Probability…

Q: See

A: a. Share Capital – Ordinary as of December 31, 2021       -  P1689600 b.  Share Premium – Ordinary…

Q: What earnings per share would Alford report for 2021?

A:

Q: If investor required return is 20% and capital gain is 8% how much dividend company should pay?

A: The required return is the total return generated on an investment during the time period for which…

Q: What is ST Company's cost of equity? e a. b. If the firm converts to 25 percent debt, what will its…

A: Cost of Equity: It is the cost to the company for raising capital from the equity investors. For…

Q: What is the clientele effect and how does it impact on dividens policy for the company? If the…

A: The clientele effect explains the theory of a shift in the demand for a company's stock due to…

Q: If the return on total assets is 10% and if the return on common stockholders' equity is 12% then a.…

A: GIVEN ÷ return on total assets = 10% return on common stockholders' equity = 12%

Q: QUESTION 13 Studies analyzing the historical returns earned by common stock investors have found…

A: Corporate debt and equity are two different sources of finance.

Q: true or false Stock investments of 50% or more in an investee should be treated using the Equity…

A: Under equity method, investment is valued at proportionate basis.

Q: Why do you think Teslal stock performed so well during this 2021 period?

A: Tesla's stock has performed reasonably well in the year 2021 and gave good returns. There are couple…

Q: 4. What is the total present value of equity as of the beginning of 2021 using the implied value to…

A: Book value of equity of a company means the company's common equity. It is the net amount of total…

Q: Approximately how much does the outstanding debt cost shareholders every year? a. $50 b. $33 c.…

A: Outstanding debt arises due to debt owned by the company and that too for a long period of time. To…

Q: What was the estimated annual required return for Excellence Inc.'s stock?

A: The required return on stock can be calculated using the following equation:- P = D2010(1+g)/r-g…

Q: Calculate WACC? Given corporate tax 35%. Debt MV 20m (RRR6%) Preferred stock MV 10m (RRR8)…

A: Corporate tax rate can be defined as that rate at which a corporate or a firm is required to pay…

Q: TPX Company's 2021 return on equity Is:

A: Part A: 15.2%   Part B: $686 loss.

Q: Which is the most beneficial and advantageous to a company? Mutual fund or derivatives? Explain.…

A: There are many other financial instruments for investment.

Q: c. Using DuPont framework, compute Bersatu Berhad’s returns on equity for 2020  and 2021? Show all…

A: Dupont analysis uses breakdown of ROE under net profit margin, asset turnover and financial…

Q: If Wiper's stock had a price/earnings ratio of 14 at the end of 2020, what was the market price of…

A: Price-Earnings Ratio: It is the ratio used for valuing a company and shows the relationship between…

Q: If a Company has 50% of its capital structure in debt with an interest rate of 5% and 50% in equity…

A: Weighted average cost of capital = After tax cost of debt * Weight of debt + Cost of equity * Weight…

Q: a. What should be the repurchase price? b. How many shares should be repurchased? c. What if the…

A: Treasury stock or repurchased stock are the company’s own stock which is purchased by the company…

Q: Treasury stock should be reported Group of answer choices in the Investments and Funds section of…

A: Treasury stock- also known as reacquired stock i.e., shares reacquired by the issuing company. The…

Q: You observe that return on equity has changed from 2019 to 2020. You want to analyse the reasons for…

A: The Dupont analysis is a way of calculating return on equity by considering three critical financial…

Q: How would this affect the statement of stockholders equity for 2021? Please show work I am very…

A:

Q: Return on Common Stock

A: Return on common stock = Net income * 100/((Opening capital stock + Closing capital stock)/2)

Q: You are given the following data: EBIT : OMR 500,000 Shareholders funds : OMR 1200,000 Non current…

A: Return on capital employed = EBIT/ Shareholders funds

Q: Total debt to total assets% ratio: ?? Round your answer to the nearest hundredth percent Return on…

A: Here, Net Revenue is $283,000,000 Net Earnings is $156,000,000 Total Assets is $2,105,000,000 Total…

Q: An investor who bought money-market securities at a yield of 5.50% p.a. and sold the parcel for a…

A: The yield is the total return received on the particular securities during the period.

Q: If you were approaching retirement age, would you have ahigher percentage of bonds or of stocks in…

A: bond are considered less riskier than stock. Bond are debt instrument. Stocks provide ownership to…

Q: You have the following initial information on CMR Co. on which to base your calculations and…

A: WACC is the weighted average of the cost of acquiring the funds. Sources of capital mainly include…

Q: The Alenso corporation's target capital stucture is 50% debt and 50% common equity. The cost of…

A: Formula to calculate WACC:

Q: How much is the total share premium on December 31, 2020?

A: Step 1 Share premium is the difference between the issue price and par value or face value of the…

Q: -What is the return on Stockholders' Equity for 2021 -What is the return on Common Equity for 2021

A: Return on equity (ROE) refers to a ratio which shows the relationship between net income and…

Q: Which of the following capital structures has the highest EBIT-EPS break-even point compared to an…

A: EBIT = Earnings before interest and tax

Q: 1. What is the required rate of return for the common equity shareholders using CAPM? 2. Use the…

A: Here,

Q: Calculate the return on common equity for 2019

A: Return on common equity is the amount of net income earned by the company per investment dollar.