22Squash Delight Incorporated has the following balance sheet:CashAccounts receivableAssetsFixed assetsTotal assetsAccounts payableNotes payableLiabilitiesCommon stock (100,000 shares @ $2 par)Capital in excess of parRetained earningsTotal liabilities & owners' equityThe firm's stock sells for $10 a share.$ 90,000339,000732,000$ 1,161,000$ 302,00052,000200,000100,000507,000$ 1,161,000a. Show the effect on the capital accounts of a two-for-one stock split.Note: Do not round intermediate calculations and round your answers to the nearest whole dollar.Common stockCapital excess of parRetained earningsTotal equityEffect of StockSplit$0

A stock dividend, also known as a scrip tip or perk shares, is a tip payment made by a company to…

Answered: Squash Delight Incorporated has the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Brenda Limited has an enterprise value of $10 million, total debt of $4 million and 2 million shares outstanding. The latest balance sheet of the firm reports assets worth $8 million. The per-share market value of the equity is: Select one: a. $2.00 b. $3.00 c. $4.00 d. $5.00
Quincy Martin Manufacturing has assets of $5 million and liabilities of $3 million. The company has also issued 400,000 shares of common stock. What is the company's book value per share? Select one: O a. $10.25 O b. $7.50 O c. $5 O d. $2.50 O e. $1.00
What is the total stockholders' equity based on the following account balances? Common Stock $375,000 Paid-In Capital in Excess of Par 90,000 Retained Eamings 190,000 15,000 Treasury Stock a. S655,000 b. 8640.000 C. S565 000 d. s670,000
ILLUSTRATION 13. Following is the Balance Sheet of Trymore Engineering Company Ltd. as at 31st March, 2016 : I. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital : 3,000 Equity Shares of 100 each fully paid 2,000 6% Cumulative Preference Shares of 100 each fully paid (b) Reserves and Surplus: Surplus A/c (Negative Balance) Non-current Liabilities 10% Debentures 3,00,000 2,00,000 (-) 3,00,000 (2) 2,50,000 (3) Current Liabilities Sundry Creditors (Unsecured) Interest due on Debentures 3,50,000 50,000 Total Equity and Liabilities 8,50,000 II. Assets (1) Non-current Assets (a) Fixed Assets : Plant & Machinery 2,00,000 Sundry Fixed Assets Intangible Assets : Goodwill 30,000 80,000 40,000 2,00,000 Patents (b) Investments (Market Value 1,50,000) (2) Current Assets Stock Sundry Debtors : More than 6 months 1,00,000 25,000 Others Cash & Bank Balances 1,25,000 50,000 Total Assets 8,50,000 Note : Preference Dividends are in arrears for 5 years. The Company feels that the worst is…
Alina Corp: Common Stock, $1 par $4,000,000 Paid in Capital-Common Stock $500,000 Preferred stock $1,500,000 Paid in capital-Preferred stock $450,000 Retained Earnings $4,750,000 Treasury Stock at cost $400,000 a. How much is the total paid-in capital (cash collected) related to common stock?
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1 Following is the Balance sheet of Jay Limited: Liabilities Equity Shares of Rs. 10 each Retained Earnings } VESHUR 6% Preference Share of Rs.10 each General Reserve Debenture Redemption Fund 5% Debentures Sundry Creditors Total Liabilities Amoun Required: Calculate value per share by using following 1. Yield Method 2. Net Assets Method t 300,000 200000 Assets Fixed Assets Allowances for Depreciation 21 13303 90,000 880,000 200,000 Current assets 5,000 Preliminary Expenses Unwritten Off Discount 25,000 60,000 Amoun t 600,000 (75,000) 340,000 10,000 5,000 Total Assets Current Assets include investments of Rs.50,000 market price of which is Rs.90,000. Debtors included in current assets are doubtful to the extent of Rs.25,000 for which no provision has been made so far. Debenture interest owes for two years and preference dividends are in arrear for two years. Earnings before tax is Rs.280,000 and Tax rate is 35%. The normal rate of dividend is 20%. 880,000
Caswell-Cassey Pharmaceutical has a stockholders’ equity account as shown below. The firm’s common stock currently sells for $20 per share. Preferred Stock $500 Common Stock (2,000,000 shares @ $1 par) 2,000,000 Paid in Capital in excess of par 10,000,000 Retained Earnings 11,600,000 Total Stockholders Equity 24,100,000 Questions (a) What is the maximum dividend per share Caswell-Casey can pay? (Assume capital includes all paid-in capital.) (b) Recast the partial balance sheet (the stockholders’ equity accounts) to show independently (1) a 2 for 1 stock split of the common stock. (2) a cash dividend of $1.50 per share. (3) a stock dividend of 5 percent on the common stock.
You have the following balance sheet and information about FedEx: Balance Sheet: Assets Liabilities & Shareholders’ Equity Current Assets $31,000,000 Current Liabilities $28,000,000 PP&E $197,000,000 Long-term Debt (Corporate Bonds) $105,000,000 Equity $95,000,000 Total $228,000,000 Total $228,000,000 FedEx has 16 million shares outstanding. FedEx’s shares have a beta of 1.6 and are currently trading for $15 per share. The expected market risk premium is 7%. The risk-free rate is 1%. The debt is trading at 101% of book value. The coupon rate on existing debt is 5% The yield to maturity on existing debt is 3%. The corporate tax rate is 21%. Compute FedEx’s weighted-average cost of capital (WACC).
Computer for: Equity value and enterprise value
Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet (S in millions) Current assets S 42, 526 Current liabilities $ 29,753 Long term assets 46,836 Long-term debt 27,754 Other liabilities 14,321 Equity 17,534 Total S 89, 362 Total S 89, 362 Locust has 659 million shares outstanding with a market price of $85 a share. Calculate the company's market value added. Calculate the market-to-book ratio. How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as a percent of the net capital contributed by shareholders?

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