3) The Rent It Company declared a dividend of $.60 a share on October 20th to holders of record on Monday, November 1st. The dividend is payable on December 1st. You purchased 100 shares of Rent It Company stock on Wednesday, October 27th. How much dividend income will you receive on December 1st from the Rent It Company? <
Q: on Chather bought a new Dell computer for $1,100. This included a 5% sales tax. What is the amount…
A: Sales tax refers to an amount that is paid by the seller to the government at fixed percentage to be…
Q: Bank A Bank B ROE 20.99% 7.2% ROA 2.21% 0.91% Which bank has a higher level of leverage? O Bank A O…
A: Bank :-A,> Given:> >ROA = 2.21%> ROE = 20.99%> ROE = ROA *Equity multiplier>…
Q: Using Microsoft Excel, create an investment cash-flow diagram that will have a present worth of zero…
A: We have to create an investment cash-flow diagram that will have a present worth of zero for a given…
Q: You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two…
A: Arrangement 1: $75,000 per year for 2 years.- Arrangement 2: $64,000 per year for 2 years, plus a…
Q: Rock Industries has hired the investment banking firm to help for going public. Rock and investment…
A: > Given data:>Value pre IPO = $75 million> Shares existing = 5 million> Shares to be…
Q: French Corporation wishes to hire Leslie as a consultant to design a comprehensive staff training…
A: Net Present Value refers to the present value of the future cash flows less the initial investment.…
Q: Joanette, Incorporated, is considering the purchase of a machine that would cost $430,000 and would…
A: An investor or company can forecast the profitability of a project or investment by using the Net…
Q: Mason (single) is a 50 percent shareholder in Angels Corp. (an S Corporation). Mason receives a…
A: Income tax-The tax on a person's or organization's earnings/ income received/ earned in the previous…
Q: etex Corp. is an all - equity company. Its assets will be worth $550 million (market value) in one…
A: Market value today=$400 millionValue when economy strong=$550 millionValue when economy weak=$350
Q: Q2. MNO Inc., a publicly traded manufacturing firm in the United States, has provided the following…
A: Altman Z score is score that shows the probability of company going for bankruptcy and that depends…
Q: acceptable because it has a positive NPV. O unacceptable because it has a zero NPV. O unacceptable…
A: Net present value is the balance when present value of cash outflows is deducted from the present…
Q: A loan of $12,000 is repaid by payments of at the end of every three months Interest is 9% $571
A:
Q: Rooney Airline Company is considering expanding its territory. The company has the opportunity to…
A: Payback period (PBP) refers to the period or duration within which the company is able to recover…
Q: What costs are associated with carrying receivables? What costs are associated with not granting…
A: The carrying costs is related with granting credit which includes loss from bad debts, cost of…
Q: four assets below Asset i 1 2 3 4 Expected Return on Asset i (%) 7.6 12.4 15.6 18.8 0.2 0.8 Bi 21.3…
A: The solution requires the risk free rate which is not given. Instead, betas are given so we can use…
Q: Your firm is contemplating the purchase of a new $500,000 computer-based order entry system. The…
A: IRR is also known as Internal rate of Return. It is a capital budgeting technique which helps in…
Q: 38. You have forecast the free cash flows to the firm for Permelac Inc., a young and growing…
A: The value of company is the present value free cash flows and the present value of terminal value.…
Q: LBU Valuation - Normalizing EBITDA The ultimate valuation of a prospective LBO is usually based on…
A: The cost of goods sold (COGS), alternatively termed as cost of sales, encompasses the direct costs…
Q: Suppose that: The price of a non-dividend-paying stock is$60 The 1-year forward price of the stock…
A: Arbitrage means buying the stock at its spot price and future to exploit any gain of the…
Q: Sam's borrows $250.000 payable over five years, with an interest rate of 10% per year on the unpaid…
A: PV=Loan amount = $250,000r=annual rate = 10%n=years = 5C= annual payment…
Q: Most economies have a goal of maximizing the average consumption per period. Assume that during each…
A: - Constant savings rate: (to be determined)- Capital production function: - Annual consumption: -…
Q: Detroit irons last dividend was$3.00. the company's growth is expected to remain at a constant 5…
A: P0=D0(1+g)/(r−g)P0=Current stock priceD0=last year dividend =$3r=Required return=0.13g=Growth rate…
Q: Akeem Joffer hopes to a new cabin on Webb Lake in Maine. Akeem has $13,000 saved today and wants to…
A: Future value refers to the future value of annuity deposit and the future cash flows compounded over…
Q: Weismann Co. issued 5-year bonds a year ago at a coupon rate of 9 percent. The bonds make semiannual…
A: A Bond represents a debt owed typically by the government or corporation to investors. Bond Price…
Q: A manufacturer of video games develops a new game over two years. This costs $840,000 per year with…
A: Net Present value (NPV) = Present value of Positive cash flow - Present value of negative cash…
Q: What is the nominal annual rate of interest compounded monthly on a lease valued at $28,999.00 if…
A: Effective annual rate of return is the actual return which the investor received after considering…
Q: The Yellow Corp has $650,000 of debt outstanding, and it pays an interest rate of 8% annually. Its…
A: EBITDA coverage is used to assess the company's ability to cover its debt obligations. EBITDA is…
Q: Describe the relationship between coupon rate and required rate of return that will result in a bond…
A: The question is asking about the relationship between the coupon rate of a bond and the required…
Q: The market risk premium is given as 10.3 percent. The risk free rate is 2.9 percent. You invest…
A: Capital Asset Pricing Model (CAPM) is a financial model to determine the minimum required rate of…
Q: In 2017, an agricultural company introduced a new cropping process which reduced the cost of growing…
A: - 2016 Sales: $50 million- 2017 Sales: $50 million- 2016 Gross Margin: 4%- 2017 Gross Margin: 6.6%
Q: 6.11 A stock index is currently 990, the risk-free rate is 5%, and the dividend yield on the index…
A: - Stock Index (S) = 990- Risk-Free Rate (r) = 5% per annum- Dividend Yield (q) = 2% per annum-…
Q: You want your portfolio beta to be 1.30. Currently, your portfolio consists of $100 invested in…
A: Total investment = Investment in Stock A + Investment in Stock B + (Investment in Stock C and risk…
Q: 4.) Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to…
A: In capita budgeting, net present value refers to the present value of earnings after the deduction…
Q: 1) Calculate the VRE (Value of ROE) of each stock listed. (Record the company name and VRE) ROE ROA…
A: VRE=ROE/PERatio.CompanyVRECalculationApple0.456510.5%/23McDonald's2.000014%/7P&G1.836440.4%/22Ex…
Q: 1a. White Lotus Inc has just been granted a patent from the US Patent Office and the company is set…
A: As per company first three parts will be solved.
Q: Five years ago, you acquired a 30-year loan of $130,550, charging 6.5% annual interest, compounded…
A: A loan is an agreement where money is forwarded in exchange for a promise of repayment with interest…
Q: An investor pays £80 at the start of each month into a 25-year savings plan. The contributions…
A: Compound interest is calculated on the principal as well as the interest accumulated over the…
Q: The price of the 3x Leveraged ETF on Gold (tic:UGLD) is $203. The initial margin is 62%. The…
A: A margin account is where an investor gets the leverage to short stocks. The initial margin…
Q: A firm is currently an all equity firm that has 510,000 shares of stock outstanding with a market…
A: Financial leverage is the practice of using borrowed funds (debt) to support the acquisition of…
Q: You bought some shares of MJK at $200 per share. 8 years later, you sell these shares for $750.50…
A: The Effective Annual Rate (EAR), which is also referred to as the Annual Equivalent Rate (AER) or…
Q: The following table tracks the main components of working capital over the life of a four-year…
A: Working capital is the difference between current assets and current liabilities. The increase or…
Q: A company is considering replacing an existing piece of equipment with a more advanced machine. The…
A: Replacemetn analysis is the financial analysis where the addition or incremental economic…
Q: Suppose that a 10-year bond pays semiannual coupons that increase by 4 dollars with each coupon. If…
A: Maturity period: 10Number of payments per year: 2First coupon: 25Growth in dollars per coupon:…
Q: The management of Byrge Corporation is investigating buying a small used aircraft to use in making…
A: annual intangible benefit refers to the qualitative profit earned from intangible sources which…
Q: Upper Gullies Corp. just paid a dividend of $2.10 per share. The dividends are expected to grow at…
A:
Q: Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales…
A: Assuming that the sales increase by 10% and the amount of net income also increases by…
Q: e price of Chive Corp. stock will be either $67 or $91 at the end of the year. Call tions are…
A: Call option is a derivative product and gives opportunity to purchase the stock on expiration but…
Q: Assume that you are on the financial staff of Davis Enterprises, and you have collected the…
A: As per the Capital Assets Pricing Model(CAPM),>Cost of equity = Risk free rate +[Beta x Market…
Q: Describe the relationship between coupon rate and required rate of return that will result in a bond…
A: A Bond will sell at a discount when coupon rate is less than the required rate of return for a given…
Q: A coupon bond that pays interest of $60 annually has a par value of $1,000, matures in 5 years, and…
A: Annual current yield = (Annual coupon / Current bond price) x 100
Step by step
Solved in 3 steps
- Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?Fiber Corporation declared a dividend of $.90 per share on April 20th to holders of record as of Monday, May1st. The dividend is payable on June 1st. You purchased 100shares of this stock on Wednesday, April 26th. How much dividend income will you receive on June 1st as a result of his declaration? A)$0 B)$2.25 C)$9.00 D)$22.50 E)$90.00The board of directors of Smith Enterprises announced a dividend of P1.75 per share on August 2. The dividend will be paid out to all shareholders of record as of August 10. If you bought 100 shares of Smith Enterprises stock on August 9, how much dividend are you going to receive? P175 O PO P1.75 P350
- On Jan 1, you sold short one round lot (i.e. 100 shares) of ABC stock at $21/ share. On Mar 1, adividend of $2/ share was paid. On Apr 1, you covered the short sale by buying the stock at aprice of $15/ share. You paid $0.5/ share commission for each transaction. What is the finalvalue in your account on Apr 1 (end of day)?Billingsley United declared a $0.20 a share dividend on Thursday, October 16. The dividend will be paid on Monday, November 10 to shareholders of record on Friday, October 31. What is the ex-dividend date?a) Billingsley United declared a $0.20 a share dividend on Thursday,October 16. The dividend will be paid on Monday, November 10 toshareholders of record on Friday, October 31. What is the ex-dividenddate? b) You own 2,200 shares of Deltona Hardware. The company has stated thatit plans on issuing a dividend of $0.42 a share at the end of thisyear and then issuing a final liquidating dividend of $2.90 a shareat the end of next year. Your required rate of return on this securityis 16 percent. Ignoring taxes, what is the value of one share of thisstock to you today?c) Tucker’s National Distributing has a current market value of equityof $10,665. Currently, the firm has excess cash of $640, total assetsof $22,400, net income of $3,210, and 500 shares of stock outstanding.Tucker’s is going to use all of its excess cash to repurchase sharesof stock. What will the stock price per share be after the stockrepurchase is completed?
- a) Billingsley United declared a $0.20 a share dividend on Thursday,October 16. The dividend will be paid on Monday, November 10 toshareholders of record on Friday, October 31. What is the ex-dividenddate?b) You own 2,200 shares of Deltona Hardware. The company has stated thatit plans on issuing a dividend of $0.42 a share at the end of thisyear and then issuing a final liquidating dividend of $2.90 a shareat the end of next year. Your required rate of return on this securityis 16 percent. Ignoring taxes, what is the value of one share of thisstock to you today?c) Tucker’s National Distributing has a current market value of equityof $10,665. Currently, the firm has excess cash of $640, total assetsof $22,400, net income of $3,210, and 500 shares of stock outstanding.Tucker’s is going to use all of its excess cash to repurchase sharesof stock. What will the stock price per share be after the stockrepurchase is completed?1. An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50 per share. What is the amount of gain or loss on the sale? a.$600 gain b.$9,250 loss c.$600 loss d.$12,750 gain 2. On July 5, Winter Company had a market price of $58 per share of common stock. For the previous year, Winter Company paid an annual dividend of $3.48 per share. What is the dividend yield for Winter Company? a.1.67% b.0.6% c.16.67% d.6.0% 3. Gerardo Company had a net income of $75,000 and other comprehensive income of $12,500 for the year. On January 1, the retained earnings balance was $525,000 and the accumulated other comprehensive income balance was $55,000. a. Determine the comprehensive income for the year.$_________________ b. Determine the retained earnings balance on December 31.$_________________ c. Determine the accumulated other comprehensive income on December 31.$__________________A company had 125.000 shares of commaon stock outstanding on January 1 and then sold 35,000 additionsl shares on March 30. Net income for the year was $594.750. What are eamings per share? Select one O a S0.01. O S4.58. O c. 54.73. Od. $3.03.
- On July 31, a company declared a cash dividend of SR0.25 per common share to the shareholders of record on August 15. The cash dividend will be paid on August 25. This company has 500,000 shares authorized and 100,000 shares outstanding. Prepare the journal entries required on July 31, August 15 and August 25?The Chris Clapper Copper Company declared a 25 percent stock dividend on March 10 to shareholders of record on April 1. The market price of the stock is $50 per share. You own 160 shares of the stock. A.What will be the total value of your holdings before the stock dividend, all other things the same? Format: 1,111 B. What will be the total value of your holdings after the stock dividend, all other things the same? Format: 1,111Assume that on February 12, First Union Co. purchases for cash 6,000 shares of Gilbert Co. stock at a price of $22 per share plus a $240 brokerage fee. On April 22, a $0.42- per-shares dividend was received on the Gilbert Co. stock. On May 10, 4,000 shares of the Gilbert Co. stock was sold for $28 per share less a $160 brokerage fee. What accounts would be debited on February 12 for the purchase of the 6,000 shares of Gilbert Stock? DATE DESCRIPTION PREF DEBIT CREDIT Feb. 12 (?) $132,240 (?) $132,240 Investments – Gilbert Co. Stock Dividend receivable Cash Dividend revenue