BIWS - Comprehensive (AAPL)
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Apple Inc. - Financial Statements
($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands)
Assumptions & Valuation Overview
Valuation Date:
1/29/2010
Last Historical Year:
2009
Days in Year:
360
Company Name:
Apple Inc.
Debt Issue Date:
2010
Debt Amount:
$1,000
Share Price:
$192.06
Share Units:
1000
Tax Rate:
30%
Basic Shares Outstanding:
900,678
Options Calculations (in Thousands Except Exercise Price):
Basic Equity Value:
$172,984
Diluted Shares Outstanding:
920,526
Exercise
Diluted Equity Value:
$176,796
Name
Number
Price
Dilution
Less: Cash & Investments
$35,395
Tranche A
34,375
$81.17
19,847
Plus: Debt
$0
Tranche B
Plus: Minority Interest
$0
Tranche C
Plus: Preferred Stock
$0
Tranche D
Plus: Other Liabilities
$0
Tranche E
Enterprise Value:
$141,401
Total
19,847
Historical
Projections
FY 2007
FY 2008
FY 2009
FY 2010E
FY 2011E
FY 2012E
FY 2013E
FY 2014E
EV / Revenue:
5.8 x
3.8 x
3.3 x
2.6 x
2.3 x
2.0 x
1.9 x
1.7 x
EV / EBIT:
30.4 x
16.0 x
11.4 x
9.1 x
7.8 x
7.0 x
6.4 x
6.0 x
EV / EBITDA:
28.4 x
15.1 x
10.7 x
8.6 x
7.3 x
6.6 x
6.1 x
5.7 x
Equity Value / FCF:
37.3 x
20.8 x
17.1 x
13.5 x
12.1 x
10.9 x
10.1 x
9.1 x
P / E:
48.9 x
28.3 x
21.2 x
16.6 x
14.1 x
12.2 x
11.1 x
9.8 x
P / BV:
7.9 x
5.6 x
4.1 x
3.1 x
2.4 x
2.0 x
1.6 x
Operating Assumptions
Historical
Projections
FY 2007
FY 2008
FY 2009
FY 2010E
FY 2011E
FY 2012E
FY 2013E
FY 2014E
Revenue Growth %:
27.2%
52.5%
14.4%
25.0%
17.0%
11.0%
9.0%
7.0%
COGS % Revenue:
66.2%
64.1%
59.0%
59.0%
59.0%
59.0%
59.0%
59.0%
R&D % Revenue:
2.4%
2.0%
1.9%
1.9%
1.9%
1.9%
1.9%
1.9%
SG&A % Revenue:
11.1%
8.9%
8.3%
8.3%
8.3%
8.3%
8.3%
8.3%
Stock-Based Compensation % Revenue:
1.0%
1.4%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
Depreciation & Amortization % Revenue:
1.3%
1.3%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
Effective Cash Interest Rate:
5.3%
3.4%
1.4%
1.0%
1.0%
2.0%
2.0%
3.0%
Debt Interest Rate:
0.0%
0.0%
0.0%
9.0%
9.0%
9.0%
9.0%
9.0%
Effective Tax Rate:
30.2%
31.6%
31.8%
30.0%
30.0%
30.0%
30.0%
30.0%
Accounts Receivable % Revenue:
6.5%
7.8%
7.8%
7.8%
7.8%
7.8%
7.8%
Accounts Receivable Days:
23.3
28.2
28.2
28.2
28.2
28.2
28.2
Inventory % COGS:
2.1%
1.8%
1.8%
1.8%
1.8%
1.8%
1.8%
Amortization of Intangibles:
$40
$37
$28
$13
$10
Accounts Payable % COGS:
23.0%
22.1%
22.1%
22.1%
22.1%
22.1%
22.1%
Accounts Payable Days:
82.6
79.6
79.6
79.6
79.6
79.6
79.6
Accrued Expenses % Operating Expenses:
102.9%
87.6%
87.6%
87.6%
87.6%
87.6%
87.6%
Short-Term Deferred Revenue % Revenue:
4.3%
4.8%
4.8%
4.8%
4.8%
4.8%
4.8%
Long-Term Deferred Revenue % Revenue:
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
CapEx % Revenue:
3.0%
2.9%
2.7%
2.7%
2.7%
2.7%
2.7%
2.7%
Income Statement
FY 2007
FY 2008
FY 2009
FY 2010E
FY 2011E
FY 2012E
FY 2013E
FY 2014E
Revenue:
$24,578
$37,491
$42,905
$53,631
$62,749
$69,651
$75,919
$81,234
Cost of Goods Sold:
$16,282
$24,049
$25,324
$31,655
$37,037
$41,111
$44,811
$47,948
Gross Profit:
$8,296
$13,442
$17,581
$21,976
$25,712
$28,540
$31,109
$33,286
Operating Expenses:
Research & Development:
$596
$759
$830
$1,038
$1,214
$1,348
$1,469
$1,572
Selling, General & Administrative:
$2,724
$3,345
$3,566
$4,458
$5,216
$5,789
$6,311
$6,752
Total Operating Expenses:
$3,320
$4,103
$4,397
$5,496
$6,430
$7,137
$7,780
$8,324
Depreciation & Amortization of PP&E:
$327
$496
$734
$918
$1,073
$1,192
$1,299
$1,390
Amortization of Intangibles:
$0
$0
$0
$40
$37
$28
$13
$10
Stock-Based Compensation:
$242
$516
$710
$888
$1,038
$1,153
$1,256
$1,344
Operating Income:
$4,407
$8,327
$11,740
$14,635
$17,133
$19,030
$20,761
$22,218
Interest Income:
$647
$653
$407
$424
$568
$1,443
$1,780
$3,223
Interest Expense:
$0
$0
$0
($45)
($90)
($90)
($90)
($90)
Other Income & Expense:
($48)
($33)
($81)
$0
$0
$0
$0
$0
Pre-Tax Income:
$5,006
$8,947
$12,066
$15,014
$17,610
$20,383
$22,450
$25,351
Income Tax Provision:
$1,511
$2,828
$3,831
$4,504
$5,283
$6,115
$6,735
$7,605
Net Income:
$3,495
$6,119
$8,235
$10,510
$12,327
$14,268
$15,715
$17,746
Earnings Per Share (EPS):
$3.93
$6.78
$9.08
$11.59
$13.59
$15.73
$17.33
$19.56
Diluted Shares Outstanding:
889,292
902,139
907,005
907,005
907,005
907,005
907,005
907,005
EBIT:
$4,649
$8,843
$12,450
$15,523
$18,171
$20,183
$22,017
$23,562
EBITDA:
$4,976
$9,339
$13,184
$16,480
$19,282
$21,403
$23,329
$24,962
Levered Free Cash Flow:
$4,735
$8,505
$10,311
$13,061
$14,618
$16,158
$17,507
$19,382
Book Value Per Share (BV):
$24.17
$34.56
$47.17
$61.94
$78.98
$97.70
$118.76
Balance Sheet
FY 2008
FY 2009
FY 2010E
FY 2011E
FY 2012E
FY 2013E
FY 2014E
Assets:
Current Assets:
Cash & Cash-Equivalents:
$11,875
$6,559
$20,620
$35,238
$51,396
$68,903
$88,285
Short-Term Securities:
$10,236
$26,282
$26,282
$26,282
$26,282
$26,282
$26,282
Accounts Receivable:
$2,422
$3,361
$4,201
$4,915
$5,456
$5,947
$6,364
Inventory:
$509
$455
$569
$665
$739
$805
$861
Deferred Tax Assets:
$1,044
$4
$4
$4
$4
$4
$4
Other Current Assets:
$3,920
$3,140
$3,140
$3,140
$3,140
$3,140
$3,140
Total Current Assets:
$30,006
$39,801
$54,816
$70,245
$87,017 $105,082 $124,936
Long-Term Assets:
Long-Term Securities:
$2,379
$2,554
$2,554
$2,554
$2,554
$2,554
$2,554
Plants, Property & Equipment:
$2,455
$2,839
$3,352
$3,951
$4,617
$5,342
$6,118
Goodwill:
$207
$207
$207
$207
$207
$207
$207
Other Intangible Assets:
$285
$354
$314
$277
$249
$236
$226
Other Assets:
$839
$2,011
$2,011
$2,011
$2,011
$2,011
$2,011
Total Assets:
$36,171
$47,766
$63,253
$79,245
$96,654 $115,432 $136,052
Liabilities & Shareholders' Equity:
Current Liabilities:
Accounts Payable:
$5,520
$5,601
$7,001
$8,191
$9,093
$9,911
$10,605
Accrued Expenses:
$4,224
$3,852
$4,815
$5,634
$6,253
$6,816
$7,293
Deferred Revenue:
$1,617
$2,053
$2,566
$3,003
$3,333
$3,633
$3,887
Total Current Liabilities:
$11,361
$11,506
$14,383
$16,828
$18,679
$20,360
$21,785
Long-Term Liabilities:
Deferred Revenue:
$768
$853
$1,066
$1,248
$1,385
$1,509
$1,615
Long-Term Debt:
$0
$0
$1,000
$1,000
$1,000
$1,000
$1,000
Other Long-Term Liabilities:
$1,745
$3,502
$3,502
$3,502
$3,502
$3,502
$3,502
Total Liabilities:
$13,874
$15,861
$19,951
$22,577
$24,565
$26,371
$27,902
Shareholders' Equity:
Common Stock:
$7,177
$7,177
$7,177
$7,177
$7,177
$7,177
$7,177
Additional Paid-In Capital:
$0
$1,185
$2,073
$3,111
$4,263
$5,520
$6,864
Treasury Stock:
$0
$0
$0
$0
$0
$0
$0
Retained Earnings:
$15,129
$23,364
$33,874
$46,201
$60,470
$76,185
$93,930
Accumulated Other Comprehensive Income:
($9)
$179
$179
$179
$179
$179
$179
Total Shareholders' Equity:
$22,297
$31,905
$43,302
$56,668
$72,089
$89,061 $108,151
Total Liabilities & SE:
$36,171
$47,766
$63,253
$79,245
$96,654 $115,432 $136,052
BALANCE CHECK:
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
Cash Flow Statement
FY 2007
FY 2008
FY 2009
FY 2010E
FY 2011E
FY 2012E
FY 2013E
FY 2014E
Operating Activities:
Net Income:
$3,495
$6,119
$8,235
$10,510
$12,327
$14,268
$15,715
$17,746
Depreciation & Amortization of PP&E:
$327
$496
$734
$918
$1,073
$1,192
$1,299
$1,390
Amortization of Intangibles:
$0
$0
$0
$40
$37
$28
$13
$10
Stock-Based Compensation:
$242
$516
$710
$888
$1,038
$1,153
$1,256
$1,344
Deferred Income Tax Expense:
$73
$398
$1,040
$0
$0
$0
$0
$0
Loss on PP&E:
$12
$22
$26
$0
$0
$0
$0
$0
Changes in Operating Assets & Liabilities:
Accounts Receivable:
($385)
($785)
($939)
($840)
($714)
($541)
($491)
($416)
Inventory:
($76)
($163)
$54
($114)
($97)
($73)
($66)
($56)
Other Current Assets:
($1,279)
($274)
$780
$0
$0
$0
$0
$0
Other Assets:
$285
$289
($1,172)
$0
$0
$0
$0
$0
Accounts Payable:
$1,494
$596
$81
$1,400
$1,190
$901
$818
$694
Deferred Revenue:
$566
$718
$521
$727
$618
$468
$425
$360
Other Liabilities:
$716
$1,664
$1,385
$963
$819
$620
$563
$477
Cash Flow from Operations:
$5,470
$9,596
$11,455
$14,491
$16,292
$18,015
$19,532
$21,548
Investing Activities:
Purchases of Securities:
($11,719)
($22,965) ($46,724)
$0
$0
$0
$0
$0
Proceeds from Maturities & Sales:
$9,424
$16,243
$30,678
$0
$0
$0
$0
$0
Purchases of LT Investments:
($17)
($38)
($101)
$0
$0
$0
$0
$0
Capital Expenditures:
($735)
($1,091)
($1,144)
($1,430)
($1,673)
($1,857)
($2,024)
($2,166)
Acquisition of Intangibles:
($251)
($108)
($69)
$0
$0
$0
$0
$0
Other:
$49
($230)
($74)
$0
$0
$0
$0
$0
Cash Flow from Investing:
($3,249)
($8,189) ($17,434)
($1,430)
($1,673)
($1,857)
($2,024)
($2,166)
Financing Activities:
Proceeds from Common Stock:
$365
$483
$475
$0
$0
$0
$0
$0
Common Stock Repurchased:
$0
$0
$0
$0
$0
$0
$0
$0
Dividends Issued:
$0
$0
$0
$0
$0
$0
$0
$0
Tax Benefits from Stock-Based Comp:
$377
$757
$270
$0
$0
$0
$0
$0
Raise / (Pay Off) Long-Term Debt
$0
$0
$0
$1,000
$0
$0
$0
$0
Cash Used for Equity Awards:
($3)
($124)
($82)
$0
$0
$0
$0
$0
Cash Flow from Financing:
$739
$1,116
$663
$1,000
$0
$0
$0
$0
Increase / Decrease in Cash:
$2,960
$2,523
($5,316)
$14,061
$14,618
$16,158
$17,507
$19,382
Cash & Cash Equivalents:
$9,352
$11,875
$6,559
$20,620
$35,238
$51,396
$68,903
$88,285
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Additional paid-in capital
Retained earnings
Treasury shares at cost
Other
Net common equity
Note:
Authorized shares (millions)
Issued shares, of which:
Outstanding shares.
Treasury shares
Required A
Required B
Required:
a. Suppose that FedEx now issues 5 million shares at $160 a share. Update the table below with the new values.
b. What would happen to the book value of common stockholders' equity if instead FedEx bought back 5 million shares at $160 per
share?
$
Complete this question by entering your answers in the tabs below.
Common shares ($0.10 par value per share)
Additional paid-in capital
Retained earnings
Treasury shares at cost
Other
31
3,088
23,713
(7,621)
(360)
Net common equity
$ 18,851
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The Mike Corporation’s statement of financial position shows total shareholders’ equity of P3,150,000 as of December 31, 2016.
a. What is the book value per share, assuming that the company has only one class of share capital outstanding consisting of 50,000, P10 par ordinary shares?A. P10.00B. P63.00C. P70.20D. P73.00
b. What is the book value per ordinary share assuming that the company has two classes of share capital outstanding consisting of the following: 5,000, P100 par value preference shares with a liquidation value of P120 per share and 50,000, P10 par value ordinary shares?A. P10.00B. P51.00C. P53.00D. P63.00
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The financial statements of Friendly Fashions include the following selected data (in millions):($ in millions) 2021 2020Sales $ 10,043 $ 11,134Net income $ 312 $ 818Stockholders’ equity $ 1,850 $ 2,310Average shares outstanding (in millions) 675 –Dividends per share $ 0.31 –Stock price $ 6.20 –Required:1. Calculate the return on equity in 2021.2. Calculate the dividend yield in 2021.3. Calculate earnings per share in 2021.4. Calculate the price-earnings ratio in 2021.
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The M. Smith and Family Corporation
Data
Shares Outstanding
25,000,000
Earnings
$50,000,000
Dividends, Per Share (Just Paid)
$1.25
Return on Equity
0.15
Beta
1.35
Market Data
Expected Return
Market Return
0.12
Risk-Free Rate
0.03
Required:
Using the information in the tables above, complete the necessary steps to calculate the P/E ratio and the PEG ratio.
The M. Smith and Family Corporation
Calculations
Capitalization Rate
Earnings Per Share
Plowback Rate
Sustainable Growth Rate
Price
P/E Ratio
Sustainable Growth Rate (as Percentage, use for PEG Calculation)
0
PEG Ratio
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Book value of common stockholders' equity of FedEx, May 31, 2020 (figures in $ millions)
Common shares ($0.10 par value per share)
Additional paid-in capital
$31
3,098
23,723
(7,771)
(370)
$18,711
Retained earnings
Treasury shares at cost
Other
Net common equity
Note:
Authorized shares (millions)
Issued shares, of which:
Outstanding shares
Treasury shares
Required:
a. Suppose that FedEx now issues 5 million shares at $150 a share. Update the table below with the new values.
b. What would happen to the book value of common stockholders' equity if instead FedEx bought back 5 million shares at $150 per
share?
Complete this question by entering your answers in the tabs below.
Required A
Required B
What would happen to the book value of common stockholders' equity if instead FedEx bought back 5 million shares at $150
per share?
Note: Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.
Common shares ($0.10 par value per share)…
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Stock Name
Burrfoot Enterprises
Majere Brothers Incorporated
Uth Matar Limited
Dividend Payments Per Year
$
$
$
Stock Name
Price, 1/1/2022
Burrfoot Enterprises
Majere Holdings
Uth Matar Limited
Quarterly Dividend
$
20.50
115.00 $
95.00 $
(Use cells A2 to D8 from the given information to complete this question.)
Required:
Using the information in the tables above, please calculate the dividend yield, the capital gains yield, and the holding period return for each stock.
Dividend Yield
$
1.50 $
0.85 $
Price, 12/31/2022
23.75
135.00
85.00
Capital Gains Yield Holding Period Return
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Current assets
Net Fixed assets
Total assets
Accounts payable and accurals.
Short term debt
Long term debt
Preferred Stock (10,000 shares)
Common Stock (50,000 shares)
Retained earnings
Total common equity
Total liabilities and equity
$2,000
3,000
$5,000
$900
100
1,100
250
1,300
1,350
$2,650
$5,000
Sunrise's earnings per share last year were $3.20. The common stock sells for $52.00,
last year's dividend (D.)was $2.25, and a flotation cost of 10% would be required to sell
new common stock. Security analysts are projecting that the common dividend will grow
at an annual rate of 8.8%. Sunrise's preferred stock pays a dividend of $2.90 per share,
and its preferred stock sells for $25.00 per share. The firm's before-tax cost of debt is
12%, and its marginal tax rate is 25%. The firm's currently outstanding 10% annual
coupon rate, long-term debt sells at par value. The market risk premium is 5.2%, the risk-
free rate is 5.5%, and Sunrise's beta is 1.526. The firm's total debt, which is the…
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Consider the following price and dividend data for GS
Company:
Date
Price ($)Dividend ($)
December 31, 2008 $14.64
January 26, 2009 $13.35
$0.10
April 28, 2009
$9.14
$0.10
July 29, 2009
$10.74
$0.10
October 28, 2009 $8.02 $0.10
December 30, 2009 $7.72
Assume that you purchased GS Company stock at the closing
price on December 31, 2008 and sold it at the closing price on
December 30, 2009. What is your realized annual return for the
year 2009?
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Current assets
Net Fixed assets
Total assets
Accounts payable and accurals.
Short term debt
Long term debt
Preferred Stock (10,000 shares)
Common Stock (50,000 shares)
Retained earnings
Total common equity
Total liabilities and equity
$2,000
3,000
$5,000
$900
100
1,100
250
1,300
1,350
$2,650
$5,000
Sunrise's earnings per share last year were $3.20. The common stock sells for $52.00,
last year's dividend (D.)was $2.25, and a flotation cost of 10% would be required to sell
new common stock. Security analysts are projecting that the common dividend will grow
at an annual rate of 8.8%. Sunrise's preferred stock pays a dividend of $2.90 per share,
and its preferred stock sells for $25.00 per share. The firm's before-tax of debt is
12%, and its marginal tax rate is 25%. The firm's currently outstanding 10% annual
coupon rate, long-term debt sells at par value. The market risk premium is 5.2%, the risk-
free rate is 5.5%, and Sunrise's beta is 1.526. The firm's total debt, which is the sum of…
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Current assets
Net Fixed assets
Total assets
Accounts payable and accurals.
Short term debt
Long term debt
Preferred Stock (10,000 shares)
Common Stock (50,000 shares)
Retained earnings
Total common equity
Total liabilities and equity
$2,000
3,000
$5,000
$900
100
1,100
250
1,300
1,350
$2,650
$5,000
Sunrise's earnings per share last year were $3.20. The common stock sells for $52.00,
last year's dividend (Do)was $2.25, and a flotation cost of 10% would be required to sell
new common stock. Security analysts are projecting that the common dividend will grow
at an annual rate of 8.8%. Sunrise's preferred stock pays a dividend of $2.90 per share,
and its preferred stock sells for $25.00 per share. The firm's before-tax cost of debt is
12%, and its marginal tax rate is 25%. The firm's currently outstanding 10% annual
coupon rate, long-term debt sells at par value. The market risk premium is 5.2%, the risk-
free rate is 5.5%, and Sunrise's beta is 1.526. The firm's total debt, which is the…
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Question Content Area
Balance sheet and income statement data indicate the following:
Bonds payable, 6% (due in 15 years)
$1,114,580
Preferred 8% stock, $100 par
(no change during the year)
200,000
Common stock, $50 par
(no change during the year)
1,000,000
Income before income tax for year
407,169
Income tax for year
122,151
Common dividends paid
60,000
Preferred dividends paid
16,000
Based on the data presented, what is the times interest earned ratio (round to two decimal places)?
a. 3.26
b. 7.09
c. 4.26
d. 6.09
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Book value of common stockholders' equity of FedEx, May 31, 2020 (figures in $ millions)
Common shares ($0.10 par value per share)
Additional paid-in capital
Retained earnings
Treasury shares at cost
Other
Net common equity
Note:
Authorized shares (millions)
Issued shares, of which:
Outstanding shares
Treasury shares
Required:
$ 38
3,094
23,719
(7,711)
(366)
$ 18,774
332
48
a. Suppose that FedEx now issues 7 million shares at $130 a share. Update the table below with the new values.
b. What would happen to the book value of common stockholders' equity if instead FedEx bought back 7 million shares at $130 per
share?
Complete this question by entering your answers in the tabs below.
Required A Required B
Suppose that FedEx now issues 7 million shares at $130 a share. Update the table below with the new values.
Note: Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.
Common shares ($0.10 par value per share)
$
0.7
909.3…
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Total Value of Common
Stocks (CS)
Total Value of Preferred
Stocks (PS)
Total Value of Debt (D)
O 19.79%
O 14.97%
26.94%
Cost of Equity
$800,000 (common stocks)
O none of the answers is correct
16.17%
$200,000 Cost of Preferred stock
Pre-tax Cost of Debt
$400,000
Tax rate (t)
0.23
0.1
0.08
0.3
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Calculation of selected financial ratios
Cuba Corp. provides the following information for 2020:
Preferred shares, 8%, par value $100, cumulative, callable:
Call price per share $105
Shares outstanding,$,5,000
Dividends in arrears: none
Common shares, no par value:
Shares issued $60000
Dividends paid per share $2
Market price per share $36
Carrying value $800,000
Retained earnings (after closing) $175,000
Treasury shares (common)$125,000
Number of treasury shares held $5000
Net income for 2020 $ 260,000
Calculate the following (assume no changes in share account balances during 2020):
a) Total amount of shareholders' equity on the December 31,2020 statement of financial position
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Current assets
Net Fixed assets
Total assets
Accounts payable and accurals
Short term debt
Long term debt
Preferred Stock (10,000 shares)
Common Stock (50,000 shares)
Retained earnings
Total common equity
Total liabilities and equity
$2,000
3,000
$5,000
$900
100
1,100
250
1,300
1,350
$2,650
$5,000
Sunrise's earnings per share last year were $3.20. The common stock sells for $52.00,
last year's dividend (D.)was $2.25, and a flotation cost of 10% would be required to sell
new common stock. Security analysts are projecting that the common dividend will grow
at an annual rate of 8.8%. Sunrise's preferred stock pays a dividend of $2.90 per share,
and its preferred stock sells for $25.00 per share. The firm's before-tax cost of debt is
12%, and its marginal tax rate is 25%. The firm's currently outstanding 10% annual
coupon rate, long-term debt sells at par value. The market risk premium is 5.2%, the risk-
free rate is 5.5%, and Sunrise's beta is 1.526. The firm's total debt, which is the…
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Stock price
Shares outstanding
(millions)
Mkt value Debt
(millions)
Capitalization (book
value)
Debt
Equity
Beta
Target D/E
Cost of debt
Market Info
Risk-free rate
Comparable Company
10
1,000
10,000
20.00%
80.00%
1.40
n/a
6.50%
4.00%
Market Risk Premium 5.00%
Company
A
n/a
n/a
n/a
25.00%
75.00%
n/a
0.80
5.00%
Required:
Use the relevant Comparable Company and Company A to calculate the WACC for Company A
Assume the tax rate for both companies is 30%.
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Calculate the total cost, proceeds, and gain (or loss) (in $) for the stock market transaction.
Commissions
Number of
Selling
Price
Purchase
Total
Gain
Company
Proceeds
Shares
Price
Cost
(or Loss)
Buy
Sell
Odd Lot
an audio and video products manufacturer
700
$27.37
$34.25
3%
3%
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The following information taken from Company XYZ: Balance sheet (Current) Common Stock (Par value @$2) $8,000,000 Paid in capital $30,000,000 RE $50,000,000 Total $88,000,000 Show the effect on Balance sheet (Equity section) after the following takes place:
i. cash dividend = $4.20 per share, expected net income is $32 million
ii. stock dividend: 20% stock dividend, current market price is $8
iii. stock split: five for two stock split
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
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Calculate the total cost, proceeds, and gain (or loss) (in $) for the stock market transaction.
Company
an oil company
Number of
Shares
100
Purchase
Price
$48.20
Selling
Price
$57.06
Commissions
Buy Sell Odd Lot
3%
3%
LA
Total
Cost
ta
Proceeds
LA
Gain
(or Loss)
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