Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Related questions
Question
What is the net asset value of an investment company with $9,900,000 in assets, $560,000 in current liabilities, and 1,300,000 shares outstanding? Round your answer to the nearest cent.
$ per share
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
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
- Assume that you have just purchased some shares in an investment company reporting $575 million in assets, $35 million in liabilities, and 25 million shares outstanding. What is the net asset value (NAV) of these shares?arrow_forwardOne way to find the value of a share of a stock of a company is to assume the present value of a company is the present value of its projected income stream. The value of each share of stock is equal to the present value of the company divided by the number of shares. For example, if the present value of a company is $10,000 and there are 50 shares of stock, then each share has a present value of $10,000/50-$200. Find the value of each share of a company with 1250 shares if the company is expected to earn $400,00000 per year, I years from now, forever. Assume that the income stream is continuous, and that the continuous interest rate is 5% per year. Round your answer to three decimal places. Value of one share - $ Save for Later Attempts: 0 of 10 used. Submit Answer Q FO M Q Ma Q Ma Qu Ma Viearrow_forwardWhat is the net asset value of an investment company with 20 million in assets 700,000 currently abilities and 22 million shares outstanding.arrow_forward
- Assume Skyler Industries has debt of $4,775,777with a cost of capital of 7.8% and equity of $5,798,398 with a cost of capital of 9.6%. What is Skyler’s weighted average cost of capital for equity? Round to the nearest hundredth, two decimal places and submit the answer in a percentage.arrow_forwardA) For a listed company of ABC, total book value of assets is 40 million, total market value of current assets is 20 million; total market value of fixed assets is 25 million, total current & non-current liabilities is 17.5 million, & total retained earning is 4.5 million. Total number of shares of the company is 2.5 million. Determine Current Price per share. B) How should we consider investment decision by comparing between market price and hook value of the security?arrow_forwardMarket price per share of stock=$50.00. Net income=$4.5 billion. Number of shares=2.25 billion. What is the EPS (earnings per share) and price/earnings ratio?arrow_forward
- Suppose that you have the following information: Net income = $1000 Number of shares = 100 shares Share price = $20 Calculate the P/E ratioarrow_forwardYou are given the following information: Book value of stockholders' equity = $5 million; price/earnings ratio = 10; shares outstanding = 100,000; and the market/book ratio = .5. Calculate the market price of %3D a share of the company's stock. O $37.50 O $25.00 O $50.00 O $75.00 O $16.67arrow_forwardSuppose you have the following information about a company. Calculate the stock price per share. A company has a current value of operations of $400 million. The company has $80 million in short-term investments, $200 million in debt and 10 million shares outstanding.arrow_forward
- Given the information below. Find the Weighted Average Cost of Capital Market Value of Equity = $22,000,000; Debt = $15,000,000; Cash or Cash Equivalents = $15,000,000 iD = 0.10 or 10% iMKT = 0.17 or 17% tCorp = 0.30 or 30% bK = 1.5 IRF = 0.02 = 2%arrow_forwardIf a firm has the following sources of finance, Current liabilities $ 90,000 Long-term debt 380,000 Preferred stock 75,000 Common stock 240,000 earns a profit of $50,000 after taxes, and pays $8,000 in preferred stock dividends, what is the return on assets, the return on total equity, and the return on common equity? Round your answers to two decimal places. Return on assets: % Return on total equity: % Return on common equity: %arrow_forwardYou have collected the following information about a company: Source of capital Market value Book value After-tax cost Long-term debt 100,000 100,000 0.08 Preferred stock 60,000 72,000 0.11 Common stock 200,000 100,000 0.15 Total 360,000 272,000 What is the weighted average cost of capital using market values?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College