Question 8 At the end of 2020, Diego Corporation reported a $40,000 balance in its common share account (stated value $5 per share). The treasury share account showed $720 (cost $6 per share). No dividends were paid during the first two years. During 2020 the company declared and paid a cash dividend at S1.50 per share. Calculate the total amount of the 2020 cash dividend.
Q: 8. How much do you need to save at the end of each year to receive 100 million in 10 years? The…
A: Future value required (FV) = 100,000,000 Number of annual savings (n) = 10 Interest rate (r) = 10%
Q: You would like to purchase a Treasury bill that has a $10,000 face value and is 68 days trom…
A: As per Bartleby guidelines, since you have posted multiple questions, first 1 question will be…
Q: a) How much will this investment be worth after 10 years? (Round your answer to the nearest cent.) $…
A: Investment Amount = $49,000 Time period = 10 years Rate of interest = 8% compounded continuously.…
Q: Nick buys a $25 000, 5.4% bond with quarterly interest coupons, 3 years before maturity to yield 7%…
A: Bond Amount $ 25,000.00 Coupon Rate 5.40% Yield 7% Time Period 3 Selling…
Q: 3. Suppose you want short 100 shares of Apple, at $ 30 per share with the initial margin 50% and the…
A: Equity consists of money which would be decided to return to a corporate debtor if all of its assets…
Q: Interest is charged at a rate of 12% compounded mont
A: Principle amount= price - downpayment = 100000-40000 =60000 Pv=pmt*(1-(1+i)^n)/i
Q: Table below is information about three USD10000 par value bonds, each of which pays coupon…
A: Given: Particulars 1 2 3 Par value $10,000 $10,000 $10,000 Coupon rate 8% 14% 16% Years 5…
Q: 1. Ralph has decided to deposit $400 into his savings account each month. His bank is payıng 2.…
A: Time value of money (TVM) is used to measure the value of money at different point of time in the…
Q: A young professional wishes to have $790000 in her retirement account. She invests $600 monthly in…
A: Solved using Financial Calculator FV = 790,000 PMT = +/- 600 I/Y = 10.5/12 = 0.875 CPT N = 290.11…
Q: How long (in years) will it take to quadruple it earns 0.03 compounded semiannually?
A: compound interest formula, which is A = P(1 + r/n)^(nt).
Q: A B D E F G H I J K M P 1 Non-Callable Callable 2 YTM 3 Coupon 6.33% Cash Flows 3.5 3.0 4 Par…
A: The Yield to maturity (YTM): The yield to maturity is the discount rate that equates the purchase…
Q: Two public infrastructure projects have the economic profiles that follow: Option A Option B…
A: Discount rates = 10% and 5% Option A Year Capital Cost O & M Cost Benefits 0 1…
Q: 3) What is the annual interest rate earned on a deposit that grew from $60 to $111.06 over the last…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: 2. For each of the following situation, identify whether a bond would be considered a premium bond,…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Stargate Corporation is considering two projects of machinery that perform the same task. The…
A: Net present value is the difference between Present Value of cash Inflows and Initial Investment.…
Q: How much should you pay now for (600)-4 dollars guaranteed per year for (9) years starting from next…
A: Standard Disclaimers“Since you have asked multiple question, we will solve the first question for…
Q: Silvia is thinking about investing money into a bond to diversify her investments. Company X issued…
A: The bond price is the fair assessment of the worth of a bond which is calculated by finding out the…
Q: A promissory note with a maturity value of 1300 matures in 60 days. The note is sold 23 days before…
A: Given that: Maturity Value= 1300 n=60 Discount Rate (r)=5.5%
Q: Propose four Amazon short-term and three long-term solutions (for each) and discuss the effects of…
A: Amazon.com, Inc. is a multinational technology corporation based in the United States that…
Q: Calculate the APR of a loan for $10,025, including loan fees of $310, at 11% for 6 years. (Do not…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Yields: On April 1, 2022, the prices of 1-year, 2-year, and 3-year zero coupon US Treasury bonds…
A: Here, Face Value is 100 Price of one year treasury bond is $98.2318 Price of two year treasury bond…
Q: page 10-1 of the VLN, what is the difference between issued shares and outstanding shares? A.…
A: Issued shares represents the total shares issued by the company Outstanding Shares represents the…
Q: onsider the following information: Probability of State of Economy Rate of Return if St Occurs Stoc…
A: Expected return of the stock depends the return under the probabilistic scenario of the different…
Q: The cash flow associated with a stripper oil well is expected to be $4,000 in month one, $3,925 in…
A: Cash flow is referred as the movement of the funds that are in and out of the corporation. Funds…
Q: A project requires an initial outlay of P 100 000. The relevant inflows associated with the project…
A: The difference between the present value of cash inflows and outflows over time is known as net…
Q: Explain the role of each phase of the funding journey for the entrepreneur? For example, what role…
A: A for-profit firm or company is known as an enterprise, however it is most typically linked with…
Q: What can be done by a business to mitigate: Execution risk Technology risk Reputation risk…
A: Risk management Risk management is the identification, evaluation, and prioritization of risks…
Q: Determine which of the following two alternatives is the most efficient and which is the most…
A: Generally the project with higher IRR is better. Since Alternative A has higher IRR than Alternative…
Q: For the credit card account below, compute the average daily balance, the finance charge, anc…
A: The credit cards are charged on the basis of average daily balance during the month and finance…
Q: Over a four-year period, Pat purchased shares in the Barreau du Quebec Canadian Equity Fund as…
A:
Q: The cash flow associated with a stripper oil well is expected to be $4,000 in month one, $3,925 in…
A: Cash flow is referred as the movement of the funds, which includes the inflow as well as outflow of…
Q: Caspian Sea Drinks is considering the purchase of a plum juicer - the PJXS. There is no planned…
A: Given, In this question we are required to calculate the IRR,
Q: he dividend discount model considers all dividend payments until infinity. Do we have to worry about…
A: Dividend discount model is used quite extensively in valuation of stock and we need to consider all…
Q: Suppose Dean has $500 and there are two companies he could invest X dollars in: Dog Gone Salon,…
A: Financial risk is defined as the risk, which have the different forms of risk that are associated…
Q: Eleanor is switching jobs. She wants to roll over her previous jobs retirement fund of $72,000, Her…
A: The concept of the time value of money states that the same amount of money has more value today…
Q: ge of the machine is (10) years. Note: All amounts are in Add file
A: The time taken to recoup the price of an investment is referred to as the payback period.
Q: Lovely Dove Inc. paid $1 per share in dividend last year. It is expected that dividends will grow at…
A: The Supernormal Growth Model is the model in which the value of the stock is measured through its…
Q: Having trouble, please help! You would like to have $1,000,000 when you retire in 35 years. How…
A: Future value = $ 1000000 Interest rate = 6.9% / 4 = 1.975 % [ compounded quarterly ] Number of…
Q: Tak wants to save $10 000 for a vacation. He deposits $150 at the end of each month for 4.5 years in…
A: Solved using Financial Calculator PMT = +/- 150 N = 4.5 years *12 months = 54 I/Y = 8.7/12 = 0.725…
Q: How long (in years) will it take to quadruple it earns 0.07 compounded semiannually? Note:…
A: Interest rate = 0.07 Future value factor = 4 Compounding = semi annual
Q: 1.Calculate the nominal and effective rates of interest for the following ordinary annuity. Round to…
A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…
Q: What is Simple Annuity? (payment interval, and interest period, time of payment, duration)
A: Given Simple annuity Payment interval Interest period Time of payment Duration…
Q: Suppose that TapDance, Inc.'s capital structure features 65 percent equity, 35 percent debt, and…
A: WACC = (Market weight of equity × Cost of equity) + (Market value of debt × post tax Cost of debt)
Q: 5. In order to purchase a 1000 par value 10 year bond, yielding an annual nominal rate of 8%…
A: A bond is a debt instrument through which a company raises capital. It pays back a fixed amount…
Q: Directions. Prepare a single-step Income Statement For the year ended Dec. 31, 2019, at space…
A:
Q: The balance in the supplies account on June 1 was $7,000, supplies purchased during June were…
A: Opening balance of supplies = $7000 Supplies purchased during the month = $2100 Closing balance of…
Q: 4. Consider a 10 year semiannual bond redeemable at par that yields a nominal annual rate of 8%…
A: Solved using Financial Calculator N = 10* 2 = 20 I/Y = 8/2 = 4 PMT = 6/2 = 3 FV = 100 CPT PV = -…
Q: 1.Calculate the nominal and effective rates of interest for the following ordinary annuity. Round to…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: An equipment with a cost of P 100 000 is expected to generate returns of P 90 000; P 60 000 and P 50…
A: Discount rate = 12% Equipment cost = P100,000 Return in year 1 = P90,000 Return in year 2 = P60,000…
Q: A company has the following net cash inflows. Today -$7000, Year 1-$15 000, Year 2-$9000, Year 3+…
A: Net present value (NPV) of an alternative/project refers to the variance between the initial…
Step by step
Solved in 2 steps
- DIVIDENDS Brooks Sporting Inc. is prepared to report the following 2019 income statement (shown in thousands of dollars). Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 320,000 shares of common stock outstanding, and its stock trades at 37 per share. a. The company had a 25% dividend payout ratio in 2018. If Brooks wants to maintain this payout ratio in 2019, what will be its per-share dividend in 2019? b. If the company maintains this 25% payout ratio, what will be the current dividend yield on the companys stock? c. The company reported net income of 1.35 million in 2018. Assume that the number of shares outstanding has remained constant. What was the companys per-share dividend in 2018? d. As an alternative to maintaining the same dividend payout ratio. Brooks is considering maintaining the same per-share dividend in 2019 that it paid in 2018. If it chooses this policy, what will be the companys dividend payout ratio in 2019? e. Assume that the company is interested in dramatically expanding its operations and that this expansion will require significant amounts of capital. The company would like to avoid transactions costs involved in issuing new equity. Given this scenario, would it make more sense for the company to maintain a constant dividend payout ratio or to maintain the same per-share dividend? Explain.Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Common Dividends Thompson Payroll Service began in 2019 with 1,500,000 authorized and 820,000 issued and outstanding S8 par common shares. During 2019, Thompson entered into the following transactions: Declared a S0.20 per-share cash dividend on March 24. Paid the S0.20 per-share dividend on April 6. Repurchased 13,000 common shares for the treasury at a cost of S12 each on May 9. Sold 2,500 unissued common shares for $15 per share on June 19. Declared a $0.40 per-share cash dividend on August 1. Paid the $0.40 per-share dividend on September 14. Declared and paid a 10% stock dividend on October 25 when the market price of the common stock was $15 per share. Declared a 50.45 per-share cash dividend on November 20. Paid the $0.45 per-share dividend on December 20. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) What is the total dollar amount of dividends (cash and stock) for the year? CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.
- Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?Cumulative Preferred Dividends Capital stock of Barr Company includes: As of December 31, 2018, 2 years dividends are in arrears on the preferred stock. During 2019, Barr plans to pay dividends that total S360.000. Required: Determine the amount of dividends that will be paid to Barrs common and preferred stockholders in 2019. If Barr paid $280,000 of dividends, determine how much each group of stockholders would receive.Balance Sheet Calculations Cornerstone Development Companys balance sheet information at the end of 2019 and 2020 is provided in random order, as follows: Additional information: At the end of 2019, (a) the amount of long-term liabilities is twice the amount of current liabilities and (b) there are 2,900 shares of common stock outstanding. During 2020, the company (a) issued 100 shares of common stock for 25 per share, (b) earned net income of 20,600, and (c) paid dividends of 1 per share on the common stock outstanding at year-end. Required: Next Level Fill in the blanks lettered (a) through (p). All of the necessary information is provided. (Hint: It is not necessary to calculate your answers in alphabetical order.)
- Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
- Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?