Common stock

additional stock. They would like to promise the new investors to pay 5% of sales until they have received an amount equal to what they paid for the stock. They are also obliged to pay an amount of $120 per share. They proceeded for this proposal and keeping in mind that they need not to pay any interest, dividends or the $80 per share until we start generating sales. At the same time, the investors will also get their money back plus $120 per share profit. The attorney approved the new stock offering

two shares of its common voting class A stock for each common share of Old Post and 20 of common voting class B stock for each preferred share of Old Post. Most of the shareholders are reluctant to make the exchange because of the favorable terms of the Old Post bonds they are holding. Consequently, New Gate offers to acquire all of

Google Inc. 's actual beta is 1.15 (Yahoo Inc., 2013, Stock Price History). What would Beta of this company be if it had no Long Term Debt in its capital structure? (Apply Hamada Formula.) bL = bU[1+(1-T)(wd/ws)] Google Inc. 's information as stated above is: beta = 1.15 wd = 9.77 rd = 100-9.77 =

one class of stock, it is referred to as D. common stock 16) Capital stock to which the charter has assigned a value per share is called A. par value stock 17) ABC, Inc. has 1,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2011. What is the annual dividend on the preferred stock? B. $5,000 in total 18) Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares

expenditures, so it has negative Cash to Free Cash Flow ratio. Based on all this Ford has a good amount of cash. What are Ford’s primary sources of cash? Why did Ford choose to accumulate so much cash? Ford’s primary resource of cash is issuing stock to shareholders. By having class A and class B shares, Ford is able to have control of the corporation in the family. They have increased given the shareholders a confidence by increasing their dividends as well. Ford need to accumulate cash because

expressed as the percentage of each type of capital used by the firm debt, preferred stock, and common equity." (Capital Structure Decision, 2002) Capital structure is a mix of debt, preferred stock, and common stock to which Competitive Bikes will plan to finance its company. The recommendation for Competition Bikes pertaining to their capital structure is the alternative of 50% Preferred and 50% Common Stock. With reviewing the numbers and the EPS as outlined in the schedule below (exhibit 3-1)

calculation. WACC is calculated by multiplying the cost of each capital component by its proportional weight and then summing then together. The capital components included in this calculation are a firms after-tax costs of debt, preferred stock, and common stock. DebtThe first component of a firms WACC is its cost of debt. This is the effective rate that a company pays on its current debt. Because interest expenses on debt are deductible, the after-tax cost is used in its calculation. Cost of debt

Background of CVS CVS Health Corporation is an integrated pharmacy healthcare and head quartered in Woonsocket, RI. The President and CEO of CVS is Larry J. Merlo. The company has three segments, Pharmacy services, Retail pharmacy and Corporate. CVS was previously known as Caremark Corporation and the name was changed to CVS on September 3rd 2014. CVS is the largest pharmacy healthcare provider in the United States. It has 7,800 retail pharmacies, more than 900 walk-in medical clinics. CVS has

FINANCIAL TUTORIAL 1 1. If you bought a share of stock, what would you expect to receive, when would you expect to receive it, and would you be certain that your expectations would be met? A: When you purchase a stock, you expect to receive dividends plus capital gains. Not all stocks pay dividends immediately, but those corporations that do, typically pay dividends quarterly. Capital gains (losses) are received when the stock is sold. Stocks are risky, so you would not be certain that your expectations

stated value of preferred stock would be higher in price because | | | | | it pays a fixed dividend with a set percentage of the par or face value each period. For example, when | | | | | stock prices increase, the value and dividends increase for common stock. However, the dividend | | | | | does not increase for preferred stock because with this type of stock, dividends are a fixed | | | | | | percentage of par or face value. The payout of common stock dividends will change