Each situation below relates to an independent company's owners' equity. A. Calculate the missing values. For those boxes in which you must enter subtractive or negative numbers use a minus sign. If an amount box does not require an entry, leave it blank. Beginning Net Ending Balance Income Net Loss + Investments - Distributions Balance Co. 1 $17,000 $0 $22,300 $2,250 $37,050 Co. 2 $63,680 $0 $12,000 $0 $44,880 Co. 3 $275,300 $0 $0 $24,100 $299,400 B. Which of the following correctly categorizes the three companies? a. Co. 1 is a new company; Co. 2 is a poorly-performing established company; Co. 3 is a mature company with strong financial performance. b. Co. 2 is a new company; Co. 3 is a poorly-performing established company; Co. 1 is a mature company with strong financial performance. c. Co. 3 is a new company; Co. 1 is a poorly-performing established company; Co. 2 is a mature company with strong financial performance. d. Co. 1 is a new company; Co. 3 is a poorly-performing established company; Co. 2 is a mature company with strong financial performance.

Each situation below relates to an independent company's owners' equity. A. Calculate the missing values. For those boxes in which you must enter subtractive or negative numbers use a minus sign. If an amount box does not require an entry, leave it blank. Beginning Net Ending Balance Income Net Loss + Investments - Distributions Balance Co. 1 $17,000 $0 $22,300 $2,250 $37,050 Co. 2 $63,680 $0 $12,000 $0 $44,880 Co. 3 $275,300 $0 $0 $24,100 $299,400 B. Which of the following correctly categorizes the three companies? a. Co. 1 is a new company; Co. 2 is a poorly-performing established company; Co. 3 is a mature company with strong financial performance. b. Co. 2 is a new company; Co. 3 is a poorly-performing established company; Co. 1 is a mature company with strong financial performance. c. Co. 3 is a new company; Co. 1 is a poorly-performing established company; Co. 2 is a mature company with strong financial performance. d. Co. 1 is a new company; Co. 3 is a poorly-performing established company; Co. 2 is a mature company with strong financial performance.

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter10: The Cost Of Capital

Section: Chapter Questions

Problem 1TCL: CALCULATING 3MS COST OF CAPITAL Use online resources to work on this chapters questions. Please note...

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CALCULATING 3MS COST OF CAPITAL Use online resources to work on this chapters questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions. In this chapter, we described how to estimate a companys WACC, which is the weighted average of its costs of debt, preferred stock/ and common equity. Most of the data we need to do this can be found from various data sources on the Internet. Here we walk through the steps used to calculate Minnesota Mining Manufacturings () WACC DISCUSSION QUESTIONS 1. As a first step, we need to estimate what percentage of MMMs capital comes from debt, preferred stock, and common equity This information can be found on the firms latest annual balance sheet. (As of year end 2017, had no preferred stock.) Total debt includes all interest-bearing debt and is the sum of short-term debt and long-term debt. a. Recall that the weights used in the WACC are based on the companys target capital structure. If we assume that the company wants to maintain the same mix of capital that it currently has on its balance sheet, what weights should you use to estimate the WACC for ? b. Find MMMs market capitalization, which is the market value of its common equity. Using the sum of its short-term debt and long-term debt from the balance sheet (we assume that the market value of its debt equals its book value) and its market capitalization, recalculate the firms debt and common equity weights to be used in the WACC equation. These weights are approximations of market-value weights. Be sure not to include accruals in the debt calculation.
A A EAlign lext Arrarkge QURK U S abc AV- Aa- A - Convert to SmartArt- Styles O Shape E Font Paragraph Drawing EXAMPLE 9: Following is the Balance Sheet of a company as on Mar 31, 2006: Liabilities OMR Assets OMR Cash-in-hand Cash at Bark Equity Share Capital 250,000 200,000 20,000 30,000 500,000 10,000 30,000 50,000 320,000 500,000 9% Debentures Bills Payable Sundry Debtors Fixed Assets Creditors You are required to compute Total Assets to Debt Ratio. !! lili
00 1. C. Show the impact (with amounts) of each of the following items on the horizontal equation. For the asset section, name the specific accounts impacted. i. Record Sales during the year on account of $205,000. ii. Show the impact of $190,000 cash collected during the year. iii. Establish an Allowance for Uncollectible Accounts at year-end. iv. In the following year, an account worth $6,000 is determined to be uncollectible, what is the entry? v. A receivable for $3,500 that was previously written off is collected. What is the 2 step entry? Assets Liabilities + Stockholders' Revenues Expenses Net Income Cash Equity Flow NA NA Increase NA Increase Assets Revenue in the Form of in the Accounts form of Receivable $ Sales 205000 Revenue $ 205000 2. 3. 4. O Focus O AW 68°F sur prt sc home f11 f12 delete f5 Oly 144 & backspace -> unu lock 7. 6. 5. 6. 4. { 99 enter
lenovo Assignment 3A S1 202 X ownloads/ACCT1002%20Assignment%203A%20S1%202021-%202022%20(1).pdf lagiarism Checker... S https://www.citethi... e (1).pdf 1 Q 回|+%00L ACCT1002 Introduction to Financial Accounting E. Earned Net income $ (Please refer to table below and use only the info in line with your first name initial in the blank/underlined space) firstname Initial Net Income A, P, I, E, V C, O, R, Y K, Q, M, F S, W, G, Z 24 24 %$4 2,000,000.00 %$4 $4 1,400,000.00 1,450,000.00 1,500,000.00 N, B, J, X, H 24 F. Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders. Using the info above and as a guide: A. Prepare the journal entries with narrations to record the following: The issuances of stock. Close out net income to retained earnings. Dividend declared. Close out dividend to retained earnings. 10:25 AM 11/10/2021 10.162.156.242 FOWER 29232 USB TCPAP NO TX AX LNK TX AX LNK ACT LNK F5 F7 Print F4 F10 F11
essment G Assets are creditors' claims on as G Ownership of good is transferred X Q Financial ACcounting ch. 3 Flashc x+ A blackboard.uob.edu.bh/ultra/courses/_24666_1/outline/assessment/_694623_1/overview/attempt/_3141425_1?courseld=_24666_1 Welcome to Facebo... G Google 9 Favorites O J a a a 常用网站 المنبر الفاطمي - الأف،. Question 13 On December 2020, Miranda Right started Right consulting, a new business, and completed the following transactions during the first year of operations. The company designed a financial plan for a client and immediately collected an $8,000 cash fee The Journal Entry for this transaction will be Dr. Cash $8,000 Cr. Consulting Revenue $8,000 Dr. Accounts Receivables $8,000 Cr. Cash $8,000 Dr. Accounts Payable $8,000 Cr. Cash $8,000 Dr. Consulting Revenue $8,000 Cr. Cash $8,000 2 DeintE
5 6 7 8 9 -0 31 32 33 34 35 36 File Edit View Insert Format Data Tools Extensions Help 2 100% 35 + •| fx A = 2 B Sheet1 |: Defaul... $ % .0 .00 123 C D T E Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in account payable Increase in income taxes payable Increase in dividends payable - 10 + The income statement disclosed the following items for the current year: Depreciation expense $36,000 Gain on disposal of equipment 21,000 317,500 Net income $5,600 3,200 1,200 3,800 1,200 850 F JUN 2 BIA . P G 88 23 - =- - PA - Balances of the current assets and current liabilities accounts changed between December 31, last year, and December 31, this year, as follows: H Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. J C
4 John Doe started his business, Copy Specialties, Inc., on January 5, 2019. The following 5 linformation was obtained from the accounts of the company as of January 31, 2019. In the 6 ispace provided, please prepare, in proper form, an Income Statement, Statement of Stockholder's Equity 7 and Balance Sheet (unclassified) for the month ending January 31, 2019. 8. 9 In addition, provide two observations on Profitability and two observations on Liquidity. 10 11 Rent Expense 2,000 Common Stock 20,000 12 i Cash 2,000 Accounts Payable 3,000 13 Dividends 2,500 Utilities Expense 1,200 14 ! Service Revenue 9,000 Land 18,000 15 Accounts Receivable 2,000 Supplies 16 Supplies Expense 600 17 18 19 20 Copy Specialties, Inc. 21 Income Statement 22 For the Month Ended January 31, 2019 23 24 ) 25 26 27 28 29 Sheet1
1l Normal T No Spaci... Heading 1 Heading 2 Replace Title Subtitle Subtle Em... Change Styles Select- Font Paragraph Styles 4. Editing 8. 6. I' 10 1 11. 12 • 13. 4. Based on the following information Calculate State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession 0.20 0.05 -0.17 Normal 0.55 0.08 0.12 Boom 0.25 0.13 0.29 d) Suppose Stock A has a beta of 0.8 and Stock B has a beta of 1.3. If you invest $35,000 in Stock A and $45,000 in Stock B, what is the beta of this portfolio? e) Expected return on the market (RM) is 10% and the risk-free (r;) is 4%. What must the the expected return on the portfolio according to CAPM? (Use the beta you have calculated in section d) for CAPM) E 130% ENG 00:30 INTL 2021/01/19 58 English (U.S.) ere to search
IG Text Direction OSh -122 A A 市 |ワ介←11V Arrange Quick Styles Align Text- Sh abc AV- Aa - T T4 Convert to SmartArt- Sh Font Paragraph Drawing EXAMPLE 6: Calculate the Earnings Per Share(EPS) from the following data. OMR 6,00,000 Net Profit after Tax 10,00,000 10% Preference Share Capital (OMR 10 each) per share) 10,00,000 Equity Share Capital (OMR 10 SINO
pter 4 Problem Solving.pdf Open with Google Docs Problem 4-10 page 112 RATIO CALCULATIONS Assume the following relationships for the Brauer Corp Sales total assets Retum on assets ROA) Return onequity (ROE) Calculate Brauer's puofit margin and debt iratio. Solation
Time left 0:38:48 The objectives of financial management are Select one: O a. Maximize profits and reduce the employees O b, Wealth maximization O c. Profit maximization O d. Profit maximization and wealth maximization O e. None of the options Next page LC
y Home Net income w.com/ilm/takeAssignment/takeAssignmentMain.do?invo... A Interest expense X CengageNOWv2 | Online teachin x + O 10 Fiscal Year 3 Fiscal Year 2 $146,200 $75,300 3,000 11,200 Total assets (at end of fiscal year) Total stockholders' equity (at end of fiscal year) Fiscal Year 3 $3,398,445 1,220,347 Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders' equity is 15.0% for the year ended April 2, Year 3. a. Determine the return on total assets for East Point for fiscal Years 2 and 3. Round to one decimal place. Fiscal Year 3 Fiscal Year 2 b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round to one decimal place. Fiscal Year 3 Fiscal Year 2 c. The return on stockholders' equity is use of leverage. d. During fiscal Year 3, East Point's results were compared to the industry average. The return on total assets for East Point was than the industry average. The return on stockholders'…