Preferred

to help Bentley by telling him which companies in Section B should use the financing methods listed in Section A. Section A Leasing arrangements Long-term bonds Debt with warrants Friends or relatives Common stock: non-rights Preferred stock (nonconvertible) Common stock: rights offering Convertible debentures Factoring Section B Boudoir’s Inc. Timberland Power & Light Ripe and Fresh Canning Company Piper Pickle Company Copper Mountain Mining Company

the record date. Payment date—Debit Dividends Payable and Credit Cash. The allocation of the cash dividend is as follows: Total dividend............................................................................................... Allocated to preferred stock Dividends in arrears—one year....................................................... Current year dividend ........................................................................ Remainder allocated to common stock........................

the company choose to sell additional shares. Along with the benefits there is a drawback, in the event a company declares bankruptcy, common stock shareholders are the last individuals to receive company assets behind creditors, bondholders, and preferred stock shareholders. There are two classes of common stock shares Class A and Class B. The biggest different between the two are the number of votes attached to the class or whether one class even has any voting rights. A company may want the

Kim Witten Course Project Part I Task 1 1. National First (Prime rate is 3.25%) +6.75% = 10% Semiannually EAR = (1+.10/2) ^2 – 1 which is 10.25 Regions Best Rate is 13.17% Monthly EAR = (1+.1317/12) ^12 – 1 which is 13.99 2. I think that between National First and Regions Best that National first offers the lower rate after computing the EAR. National first is also only compounded semiannually making it lower then Regions Best. The only thing I worry about it the prime rate changing

capital like common stock, preferred stock, bonds and any other long-term debt. b. The comptroller currently finds the weights for the weighted average cost of capital (WACC) from information from the balance sheet shown in Table 2. Compute the book value weights that the comp­trol­ler currently uses for the company’s capital structure. (In Millions) c. Based on the suggestion that the focus should be on market values, compute the weights of debt, preferred stock, and common stock

Par   —Common Stock  33,000 June 12 Cash 475,000 Common Stock (60,000 X $1)  60,000 Paid-in Capital in Excess of Par   —Common Stock 415,000 July 11 Cash (1,000 X $110) 110,000 Preferred Stock (1,000 X $100) 100,000 Paid-in Capital in Excess of Par   Value—Preferred Stock   (1,000 X $10)  10,000 Nov. 28 Treasury Stock  18,000 Cash  18,000 Top of Form Exercise 11-7 Your answer is correct. Fallow Co. had the following transactions during the current

= 1000 After-tax cost of debt = before-tax cost of debt * (1-tax rate) = 6.33% * (1- 30%) = 4.43% Question 10 1 out of 1 points ABC, Inc., has 757 shares of common stock outstanding at a price of $62 a share. They also have 197 shares of preferred stock outstanding at a price of $69 a share. There are 276, 8 percent bonds outstanding that are priced at $50. The bonds mature in 16 years and pay interest semiannually. What is the capital structure

Preferred dividends are generally fixed they can be valued as a constant growth rate of zero. You use the zero growth models for the preferred stock and the assumption that the dividends always stay the same and you use the constant growth model for common stock because the dividend grows by a specific percent a year.

continued to fall. David Einhorn, president of Greenlight Capital, suggested that Apple should issue perpetual preferred stock that would pay $.50 quarterly dividend (or $2 yearly) based upon a face value of $50 for each share of the preferred stock. His argument was that issuing preferred stock did not require repatriation of offshore cash as the dividend could be paid from FCF. Each preferred stock could unlock $32 per share in value. There are several ways in which Apple could deal with the varied

COST OF CAPITAL Directed Silicon Valley Medical Technologies - SIVMED was found in San Jose, CA, in 1982 by Kelly’s O’Brien, David Roberts, and Barbara Smalley. O’Brien and Roberts, both MDs, were on the research faculty at the UCLA Medical School at the time; O’Brien specialized in biochemistry and molecular biology, and Roberts specialized in immunology and medical microbiology. Smalley, who has a PhD, served as department chair of the Microbiology Department at UC-Berkeley. The company