Multiple ChoiceAt the start of the year, Gershon, Inc. had total shareholders' equity-$12,000 If net income during the year was a $200 loss, dividends paid $400, and$1,000 was raised from the sale of new stock, what is the end of year value for total shareholders' equity?$10,000$11,800$12,400$12,800nep$13,200Save & Exit Submit

Answered: Image /qna-images/answer/4b1ad552-a596-4ea1-98db-d8674e6c7051.jpg

Answered: the start of the year, Gershon, Inc.…

the start of the year, Gershon, Inc. had total shareholders equity 00 was raised from the sale of new stock, what is the end of ye Multiple Choice O$10.000 O $11800 O$12,400 $12.800 O $13.200

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.8E: Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of...

See similar textbooks

Related questions

Q: 2. The following table gives information on the return and variance of assets A and B, whose…

A: 1. Return and Variance of Assets A and B: - Asset A: Variance (σ²) = 0.0009, Expected Return…

Q: Problem 4 A Saudi company has bid for an export order to a customer in the U.K. That order would…

A: Hedging is a strategic financial practice aimed at mitigating risks associated with market…

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: 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: 20 21 b. Calculate the price of each of the three bonds. 22 23 Basic Input Data 24 Years to maturity…

A: The objective of the question is to calculate the price of each bond, the current yield, the price…

Q: es Jolie Foster Care Homes Incorporated shows the following data: Total Assets $ 2,010,000 2,550,000…

A: The objective of the question is to calculate the ratio of net income to total assets for each year…

Q: 1. What is the yield to maturity of a corporate bond with a 3-year maturity, 5 percent coupon…

A: A coupon bond, alternatively termed a fixed-income or bearer bond, represents a debt security issued…

Q: A call option currently sells for $9.25. It has a strike price of $45 and six months to maturity. A…

A: Call put parity:Strike price *e(-r*t)+ Premium on call option = Current value of stock + Premium on…

Q: he yield to maturity on two-year zero coupon Treasury bonds is 2.5% and the yield to maturity on…

A: Implied discount rate for 2nd year = ((1 +two year bond yield)^2) / (1 + one year bond yield) -1=…

Q: In a reverse mortgage there are significant monthly principal and interest payments. Question 7…

A: A reverse mortgage refers to a loan that is borrowed on a property where the borrower does not have…

Q: You have funds invested in a mutual fund of S&P 500 stocks. Over the last 5 years, the annual…

A: The average rate of return refers to the measure of the profits that the investment would provide to…

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: 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: Question 14.11 Consider two annuities that have the same yield and make annual payments. The first…

A: Macaulay duration is a concept used in finance and investment analysis to measure the weighted…

Q: A project requires an initial investment in equipment and machinery of $10 million. The equipment is…

A: Initial investment = $10 millionUseful life = 5 yearsRevenue = $5.1 millionOperating expenses (Not…

Q: Suppose you are considering buying the stocks of two companies that are similar in many respects.…

A: As per the Dividend Growth Model,Expected price of stock = D1 / (r-g)whereD1 = Expected dividend per…

Q: What is the approximate market value of a bond that pays $150 interest each year if comparable…

A: > Given data:> Annual interest = 150> Interest rate = 5% or 0.05

Q: You get a new credit card from your bank. The document that comes with the card informs you that the…

A: The effective annual rate refers to the measure of the annual rate that is paid/received after the…

Q: What is the Macaulay duration of a bond with a coupon of 4.8 percent, six years to maturity, and a…

A: A bond is a kind of debt security issued by the government and private companies to the public to…

Q: Question (5) Assume a company with 500,000 shares of $10 par common stock outstanding pays a 20%…

A: Shares : 500,000Price per share :$10 Stock dividend : 20%Pre-dividend market value : $35Equity…

Q: The value of Broadway-Brooks Inc.'s operations is $900 million, based on the free cash flow…

A: Value of operation $900Add: Value of short term investment (Unrelated to operation)$30Less: Notes…

Q: The four actors below have just signed a contract to star in a dramatic movie about relationships…

A: ActorsContract amount (a)Discount factors (b)Present value…

Q: Suppose the annual spending by tourists in a resort city is $400 million. approximately 90% of the…

A: Annual spending by tourists in a resort cities is $400 million. Approximately 90% of the revenue is…

Q: If you borrow $30,000 from a bank for 7 years at an interest rate of 8.5%, how much will you owe in…

A: A loan refers to a contract between two parties where money is forwarded from one party to the other…

Q: On January 1, 2024, LLB Industries borrowed $228,000 from Trust Bank by issuing a two-year, 10%…

A: “Since you have posted multiple questions with multiple sub parts, we will provide the solution only…

Q: New York Times Co. (NYT) recently earned a profit of $1.61 per share and has a P/E ratio of 19.40.…

A: In the given case, we have given the current earnings per share and the growth rate. So, the earning…

Q: Suppose that the CAPM is a good model of risk in the stock market. Suppose also that the average…

A: Excess return on stocks = 10%Risk-free rate = 1%

Q: Whispering Winds Pix currently uses a six-year-old molding machine to manufacture silver picture…

A: Net Present Value: It is future cash flows over the entire period of a project discounted to…

Q: A company purchases new cement manufacturing assets that cost $15 million. This is classified in the…

A: Depreciation = Depreciation base *Depreciation rate.Closing book balance = Opening book balance -…

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: #6 A stock just paid its annual dividend of $1.50 per share. This dividend increases at an annual…

A: In the given case, we have provided the annual dividend paid per share, the annual dividend growth…

Q: rate that would make your firm indifferent between the two alternatives. -0%

A: Calculate the proceeds from the forward contract:Receive £700,000 in 180 daysForward rate:…

Q: Manta Energy .84 5.4 6 15.47 −.26 35.00 20.74 Winter Sports .32 1.5 28 ??question mark .18 According…

A: Dividend discount model:The dividend discount model (DDM) is a financial valuation technique used…

Q: Your bank offers the following options on a $100,000 mortgage: 1. A 15-year, 4% loan with no points…

A: > Given :> Principal (P) = 100,000> Interest rate (r) = 4%> Number of months = 15*12 =…

Q: You are a manager at Northern Fibre, which is considering expanding its operations in synthetic…

A: The value of a project can be determined using the discounted cash flow method. This helps to…

Q: If the nominal rate is 10% and the inflation rate is currently 4.2%, what is the real rate of…

A: Irving Fisher developed the economic theory known as the "Fisher Effect," which explains how…

Q: A student bought a rental property for $40 000.00 down and monthly payments of $1000.00 for 5 years.…

A: Variables in the question:Down payment=$40000Monthly payment=$1000N (years)=5Rate=5.75% (compounded…

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: Use the following table of spot rates: Years to Maturity 1 2 3 Annual Effective Spot Rate 3.00%…

A: Interest rate swap:- It is a derivative in which two parties agree to exchange the future interest…

Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

A: Present value of all the expected cash flows as coupon and par value is the bond price. Cash flows…

Q: Croatia Inc. is in the process of acquiring Vistara Inc. on a share exchange basis. The information…

A: Let's calculate the pre-merger market value per share for both companies first. The market value per…

Q: Mustafa's portfolio consists of an annuity with monthly payments of $1,000 each month for five years…

A: 1. Annuity: - Monthly payments: $1,000 for 5 years. - Frequency: Monthly (12 times a year). -…

Q: A company is financed with equity of $4.5 million and a bank loan of $2.5 million with an interest…

A: Return On Equity refers to the percentage of earnings available to the equity shareholders.Degree of…

Q: You expect KT industries (KTI) will have earnings per share of $ 4 this year and expect that they…

A: Dividend refers to portion of total earnings of entity that is shared with common stockholders.…

Q: To calculate the RATFCF (Real After - Tax Free Cash Flow) associated with the purchase of the new…

A: The marginal tax rate signifies the proportion of tax imposed on every extra dollar of income…

Q: 2) On January 1, 20X5, Peery Company acquired 100 percent of Standard Company's common shares at…

A: The objective of this question is to prepare the consolidation entries and a three-part…

Q: Sapp Trucking's balance sheet shows a total of noncallable $45 million long-term debt with a coupon…

A: Market value of Debt = $50 millionMarket value of Equity = 10∗$24.50=$245millionTotal market value =…

Q: You are considering investing in a 20% coupon rate bond with the annual coupons, a three-year…

A: The objective of the question is to calculate the fair market price of the bond, yield to maturity…

Q: If a country devalues its currency, it is implementing an implicit___ policy on exporters and an…

A: The objective of the question is to understand the implicit policies that a country is implementing…

Q: Herry is planning to purchase a Treasury bond with a coupon rate of 2.63% and face value of $100.…

A: Coupon rate = 2.63%Yield = 3.1%Face Value = $100Purchased on 06/03/2020

Question

Multiple Choice
At the start of the year, Gershon, Inc. had total shareholders' equity-$12,000 If net income during the year was a $200 loss, dividends paid $400, and
$1,000 was raised from the sale of new stock, what is the end of year value for total shareholders' equity?
$10,000
$11,800
$12,400
$12,800
nep
$13,200
Save & Exit Submit

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Given data

VIEW

Step 2: Calculate equity at the end

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of $134,800, selling expenses of $38,310, general and administrative expenses of $36,990, interest expense of $580, and income tax expense of $13,920. Hollys stockholders equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at the end of the year. Required Compute Hollys profit margin. What other information would you need in order to comment on whether this ratio is favorable?
Five measures of solvency or profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Income before income tax was 3,000,000, and income taxes were 1,200,000 for the current year. Cash dividends paid on common stock during the current year totaled 1,200,000. The common stock was selling for 32 per share at the end of the year. Determine each of the following: (a) times interest earned ratio, (b) earnings per share on common stock, (c) price-earnings ratio, (d) dividends per share of common stock, and (e) dividend yield. Round ratios and percentages to one decimal place, except for per-share amounts.
Company A has net sales revenue of $780,000, cost of goods sold of $343,200 and all other expenses of $327,600 for the current year. At the beginning of the year, 503,000 shares of common shares were outstanding, and, at the end of the year, 537,000 shares of common shares were outstanding. What is the company's basic EPS? Multiple Choice $1.50 $0.84 $0.21 $0.8 < Prev Next y 45 of 50
K If ABC company has a Net Income of $15 million, what is Shareholder Equity if ABC's return on equity ROE is 20%? OA. $50 million B. $75 million OC. $70 million OD. $60 million
Assume a company provided the following information: $ 52,000 45,000 55,000 Net income Number of common shares outstanding, beginning of the year Number of common shares outstanding, end of the year Market price per share Dividends per share Total assets, end of the year 15 0.50 $200,000 $ 80,000 Total liabilities, end of the year The earnings per share is closest to: Multiple Cholce $1.04. $1.24. $1.44. $1.34.
ASSUME that the one year returns for COMPANY A are still (25%, -15%, 120%, -30%, -45%}. Assume also that you acquired shares in COMPANY B, which has had annual returns over the same period, of: {27; 35%; -10%; 10%; -15%}. What is the correlation between the returns on COMPANY A and COMPANY B shares? Multiple Choice 0.567 - 0.356 0.278 - 0.204 Assume that you own a portfolio comprised of 45% COMPANY A and 55% COMPANY B. What return do you expect to earn next year on this portfolio? Multiple Choice 9.74% 13.58% 10.12% 15.25%
A company reports earnings per share on common stock of $2.00 when the market price of per share of common stock is $50.000. What is the company’s price-earnings ratio? Group of answer choices 25.0 5.0 $2.00 2.5
Assume the company earns $1.62 per share. What was the sale volume? 52 Weeks Stock (Sym) Jaymen Co. Volume (100's) 51,615 Net Change - 0.50 HI LO DIV YLD % PE Close 49.94 40.25 0.58 46.90 Sale volume
A corporation using the equity method of accounting for its investment in a 80%–owned investee, which earned $20,000 and paid $5,000 in dividends What is the ending balance of investment on 31/12 if investment in 1/1 amount 100,000$ ? Select one: a. 112,000 b. 115,000 c. 120,000 d. 100,00
24. Pinaasa Company had total assets of P4,000,000 and shareholder’s equity of P2,080,000 at the beginning of the year. During the year, assets increased by P520,000 and liabilities decreased by P820,000. What is the shareholder’s equity at the end of the year? Choices: P3,700,000 P3,420,000 P3,380,000 P1,340,000
Zero Corp's total common equity at the end of last year was $350,000 and its net income was $70,000. What was its ROE? a. 19.40% b.24.20% O c. 17.00% d. 17.40% e. 20.00%
A company in the same industry as Company XYZ has a price-to-earnings (P/E) ratio of 15. If Company XYZ's earnings per share (EPS) is $3, what is the estimated value of Company XYZ's stock based on the P/E multiple? a b C d $20 $30 $45 $50