Whim's auto has $4,300,000 in retained earnings after which the company will have to issue new shares. Equity consists of 40 perecent in the company's capital structure. After how much additional funding will the firm have to issue new shares?

Q: Provide the journal entry that would be necessary to record the transaction.

A: A journal entry is the record of economic or non-economic transactions in the business containing…

Q: House of Haddock has 5,050 shares outstanding and the stock price is $145. The company is expected…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Firm C currently has 320,000 shares outstanding with current market value of $33 per share and…

A: Market value of equity can be calculated from EBIT by subtracting the interest rate of both the…

Q: The owner equity accounts for Masterson International are shown here Common stock (of $1 par…

A: Working: Original Shares Outstanding = Value of Common Stock / Par Value per share = $45,000 / $1.00…

Q: The Giant Machinery has the current capital structure of 65% equity and 35% debt. Its net income in…

A: a) Computation of dividend payout ratio: Hence, the dividend payout ratio is 54.5%.

Q: Fishwick Enterprises has 222,500 shares outstanding, half of which are owned by Jennifer Fishwick…

A: There are 222,500 shares outstanding. Half shares are owned by Jennifer Fishwick & the rest of…

Q: The Down Towner has a market value balance sheet as shown below. The firm currently has 12,000…

A: Price of share = Market value of equity / Shares outstanding

Q: National Inc. recently reported net income of P1,500,000.  The company has 300,000 shares of common…

A: Calculate the current earning per share (EPS Year 0) of the company by dividing the current net…

Q: Lightbridge corporation has 500,000 shares of common stock that currently trade for $40 per share.…

A: Computation of the market price of share one year from now is shown below:

Q: Over the years, Masterson Corporation’s stockholders have provided $34,000,000 ofcapital when they…

A: STOCK HOLDERS EQUITY = $34,000,000 NUMBER OF SHARES = 2,000,000 SELLING PRICE = $28

Q: Rizzo Co. has Net Income of $279,000 for 2024. Over the past two years, the company had outstanding…

A: Earning per share represents the earnings of the company held in hands of each shareholder of the…

Q: Jasmine Flowers (JF) must raise $345 million for its future expansion. To do so, JM expects to issue…

A: The companies have the option to raise capital by issuing shares to the public, and there are…

Q: Simone's Sweets is an all-equity firm that has 9,100 shares of stock outstanding at a market price…

A: Calculating the earnings per share (EPS) of levered firm and unlevered firm. We have,Number of stock…

Q: Maxwell Corp. is coming to the market with a new offering of 450,000 shares of stock at $22 to the…

A: Diluted EPS :- Diluted Earning per share, additionally called Diluted EPS, is a profit estimation…

Q: In previous years, Cox Transport reacquired 2 million treasury shares at $24 per share and, later, 1…

A: Weighted Average cost   No. of shares Price Total   2 24 48   1 27 27 Total 3   75 Average…

Q: National Inc. recently reported net income of P1,500,000. The company has 300,000 shares of common…

A: Here, Price Earning Rate remains the same for both years

Q: Tommy’s Automotive Group currently has 6,400,000 shares of stock outstanding and will report…

A: Calculate the value of immediate dilution potential for this new stock issue. We have,Earnings per…

Q: Big Data Ltd has 7,500 shares of common stock outstanding at a price of $18 a share. It also has…

A: The capital structure is the particular combination of debt and equity used by a company.

Q: Nile plc currently has 6,000,000 ordinary shares in issue, valued at $3 each, and the company has…

A: Data given:: No. of shares (current )= 6,000,000 Price per share = $3 Annual earnings @ 25 % of…

Q: Dove, Inc., had additions to retained earnings for the year just ended of $638,000. The firm paid…

A: Calculation of above requirement are as follows.

Q: House of Haddock has 5,050 shares outstanding and the stock price is $145. The company is expected…

A: Dividend is distributed among the shareholders of the company out of profit earned during a…

Q: The Giant Machinery has the current capital structure of 65% equity and 35% debt. Its net income in…

A: In residual dividend payout policy, income available for share holders is first applied to capital…

Q: Lightbridge corporation has 500,000 shares of common stock that currently trade for $40 per share.…

A: Price to earnings ratio (PE ratio) compares the price with earnings per share. It will be calculated…

Q: Taunton's is an all-equity firm that has 150,000 shares of stock outstanding. The CFO is considering…

A: Stock outstanding= 150,000 shares  Borrowing= $215,000 Interest rate= 7 percent interest…

Q: The Giant Machinery has the current capital structure of 65% equity and 35% debt. Its net income in…

A: Ex- dividend price is the price of the stock that does not include the the value of dividend in its…

Q: The company raises $5 million in equity capital by selling new shares of stock in the company to…

A: Accounting equation is  Total Assets = Total liabilities + equity

Q: The cost of capital is 15% and net income to stockholders generated over the past year and available…

A: Dividend per share =Net income ÷ outstanding shares=$1,000,000÷1,000,000 shares=$1   Dividend Payout…

Q: A corporation will pay a dividend of $1.75 per share at this years end and a dividend of $2.25 per…

A: The value of the stock is the PV of all future dividends and price of the stock.Timeline is as…

Q: Over the years, Janjigian Corporation's stockholders have provided $15,950 of capital, part when…

A: GIVEN, CAPITAL =$15,950 price per share = $44 number of outstanding shares = 950

Q: FCF Co. has 13,000 shares outstanding and a total market value of $1 million, $340,000 of which is…

A: Equity value = $660000 Number of shares = 13000 Stock dividend = 10%

Q: Cornerstone Corporation is a large construction company in Boston, Massachusetts. Their income…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: Big Data Ltd has 7,500 shares of common stock outstanding at a price of $18 a share. It also has…

A: WACC = (Weight of debt * after tax cost of debt) + (Weight of preferred * Cost of preferred) +…

Q: The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $1 per share, and there…

A: Dividend is the amount of return on the shares of an entity.

Q: The balance sheet for Tempest, Inc., is shown here in market value terms. There are 29,000 shares of…

A: it is given that: Equity   716,010 No of shares     29,000 Repurchase value     49,300

Q: he accounting year / self capital at the beginning of the accounting year) of Xijiang in each…

A: Internal retention ratio is calculated as shown below. Internal retention ratio=Net…

Q: yellow Fire had Net Income for the year just ended of $1,850, and the firm paid out $500 in cash…

A: Net Income is of $1,850 Cash dividend paid are $500 Common shares out standing are 10,000 Current…

Q: The Giant Machinery has the current capital structure of 65% equity and 35% debt. Its net income in…

A: When a company earns profit it distributes a proportion of profits i.e. dividends to the…

Q: The Giant Machinery has the current capital structure of 65% equity and 35% debt. Its net income in…

A: The Ex-dividend price measures the drop in the price of the shares as the stock goes ex-dividend.…

Q: Over the years, Masterson Corporation's stockholders have provided $35,000,000 of capital when they…

A: Market Value Added (MVA) refers to the net difference between the total value added by the investors…

Q: Corporation will pay a dividend of $1.75 per share at this year's end and a dividend of $2.25 per…

A: The dividend discount model is a method of finding out the current price of a company’s share. It is…

Q: Arya Inc.'s latest net income was $1,250,000, and it had 225,000 shares outstanding. The company…

A: Net income = $ 1,250,000 Number of shares = 225,000 Payout ratio = 45%

Q: Jasmine Flowers (JF) must raise $345 million for its future expansion.  To do so, JM expects to…

A: Flotation cost is cost incurred during the issue of share, and it is calculate on the total share…

Q: Bernard Corporation wants to obtain P4 million in its first public issue of common stock. After the…

A: total market value of closely-held shares = total market value of a stock - funds needed =…

Q: In previous years, Cox Transport reacquired 4 million treasury shares at $20 per share and, later, 2…

A: Compute weighted average cost per treasury share as shown below: