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Accounting for Corporations

Common Stock Issues Described

Obtain an annual report information for Juniper Networks, Inc. (10k report) year 2007 and 2008. As on December 31, 2008: How many shares of common stock was Juniper Networks authorized to issue? How many shares were issued? How many shares were outstanding? The companies' primary products and services? Thanks for your

Dividends and Stock Spilt Transactions and Stockholder's Equity

** See attached Excel file to determine the appropriate answers please. ** 1. If you owned some shares of Rigby, would you expect the total value of your shares to go up or down as a result of the stock dividends and stock split? 2. What intangibles might affect the stock value?

Dividends and Tax Implements

You are a share holder in a C corporation. The corporation earns $2 per share before taxes. Once it has paid taxes it will distribute the rest of the earnings to you as a dividend. The corporation tax rate is 40% and the personal tax rate on (both dividend and non-dividend) income is 30%. How much is left for you after all o

Common Stock and Dividends Payable

Can you determine the amounts of the transactions on 7/21;8/15; 12/4 and 12/24. I have tried these problems but keep getting the amounts incorrect. Mindy Feldkamp and her two colleagues, Oscar Lopez and Lori Melton, are personal trainers at an upscale health spa/resort in Tampa, Florida. They want to start a health club th

Regional Software: Dividend Adjustment Model

Regional Software has made a bundle selling spreadsheet software and has begun paying cash dividends. The firm's chief financial officer would like the firm to distribute 25% of its annual earnings (POR = 0.25) and adjust the dividend rate to changes in earnings per share at the rate ADJ = 0.75. Regional paid $1.00 per share in

Loss to shareholders from the conversion of preferred shares

In 1996, Microsoft issued 12.5 million convertible preferred shares carrying a dividend of 2.75 percent for $980 million. The shares were converted into common shares in December 1999, with each preferred share receiving 1.1273 common shares. At the time of conversion, Microsoft's common shares traded at $88 each. What was t

Effective rate of increase in the dividends

Tulia Dairy pays a $2.50 cash dividend and earns $5 per share. The cash dividend has recently been increased to $2.65 per share, and a 3 percent stock dividend has been declared. What is the effective rate of increase in the dividends for Tulia as a result of this action?

Dilution of ownership on sale of additional shares

A common stockholder owns 30% of a firm's 1 million outstanding shares. The firm plans to sell 200,000 new shares. a) By how much is the stockholder's percentage ownership diluted if the firm sells all the shares to new investors. b) How should the stockholder maintain her 30% ownership interest?

Dividend Valuation: Using Information on Stock Value

Larry, Moe and Curly are brothers. They're all serious investors, but each has a different approach to valuing stocks. Larry likes to use a 1 year holding period to value common shares. Moe likes to use multiyear holding periods. Curly prefers the dividend valuation model. As it turns out, all three of them are looking at the sa

Dividend Valuation Model for New Public Issue

15. The investment banking firm of Luther King, Inc., will use a dividend valuation model to appraise the shares of the Pyramid Corporation. Dividends at the end of the current year will be $1.20. The growth rate is 9 percent and the discount rate is 13%. a. What should be the price of the stock to the public?

Shares and the new purchase price

3) Katie Holmes and Garden Co. has 10,640,000 shares outstanding. The stock is currently selling at $52 per share. If an unfriendly outside group acquired 25 percent of the shares, existing stockholders will be able to buy new shares at 30 percent below the currently existing stock price. a. How many shares must the unfrien

Value of Shares: Dupont, Hooks Athletics, AT&T, Boeing, Johnson

Determine the value of a share of DuPont Series A $4.50 cumulative preferred stock, no par, to an investor who requies a 9 percent rate of return on this security. The issue is callable at $120 per share plus accrued dividens. However, the issue is not expected to be called at any time in the foreseeable future. Hooks Athle

Calculating the Rate of Return

You decide to sell short 200 shares of XCorp stock at a price of $75. Your margin deposit is 65 percent. Commission on the sale is 1.25%. While you are short, the stock pays a $1.75 per share dividend. Interest on margin debt is 5.25% per year. 1. At the end of one year you close out your short position by purchasing share of

Executive Chalk Is financed solely by common stock and has outstanding 25 million shares with a market price of $10 a share. It now announces that intends to issue 160 million of new debt and to use the proceeds to buy back common stock. Show all your work.

Executive Chalk Is financed solely by common stock and has outstanding 25 million shares with a market price of $10 a share. It now announces that intends to issue 160 million of new debt and to use the proceeds to buy back common stock. Show all your work. a. How is the market price of a stock affected by the announcement?

Dividend adjustment model

Regional Software has made a bundle selling spreadsheet software and has begun paying cash dividends. The firm's chief financial officer would like the firm to distribute 25% of its annual earnings (POR = 0.25) and adjust the dividend rate to changes in earnings per share at the rate ADJ = 0.75. Regional paid $1.00 per share in

Worldwide Inc.: What is the expected dividend Expected and the price?

41. Worldwide Inc., a large conglomerate, has decided to acquire another firm by purchasing the firm's outstanding stock from the stockholders. Analysts of the firm to be purchased are forecasting a period of 2 years of extraordinary growth (20 percent), followed by 1 year of unusual growth (10 percent), and finally a normal (s

Compute value of the stock today considering dividend payments

2) You are provided an estimate of the following information for stock XYZ. You expect to sell the stock one year from now for $26 and expect one more dividend payment before you sell. How much are the dividend payment and stock worth today? Earnings per share: this year $5.00 Dividends per share: this year $1.5

Flotation costs; dividend policies for Crystal Cargo Inc.

(Flotation Costs and issue size) Your Firm needs to raise $10 million. Assuming that flotation costs are expected to be $15 per share, and that the market price of the stck is $120, how many shares would have to be issued? What is the dollar size of the issue? (Dividend policies) The earnings for Crystal Cargo Inc. has bee

Dividends Feportable by Stockholders of Rockridge Corporation

Lacy Jones and Sarah Breau each own one-half of the stock of Rockridge Corporation, which has earnings and profits of $15,000. Rockridge distributes property with a fair market value of $24,000 to its stockholders, each stockholder receiving property with a fair market value of $12,000. The gross amount reportable by each stockh

Dividends and Firm Value: Novis Corporation

The net income of Novis Corporation is 32,000. The company has 10,000 outstanding shares and a 100 percent payout policy. The expected value of the firm one year from now is $1,545,600. The appropriate discount rate for Novis is 12 percent, and the dividend tax rate is zero. A. What is the current value of the firm assum

Class of Preferred Stock

*E15-21 (Preferred Dividends) The outstanding capital stock of Edna Millay Corporation consists of 2,000 shares of $100 par value, 8% preferred, and 5,000 shares of $50 par value common. Instructions Assuming that the company has retained earnings of $90,000, all of which is to be paid out in dividends, and that preferred di

Constant Growth: value of Medtrans stock considering dividend growth

Medtrans is a profitable firm that is not paying a dividend on its common stock. James Weber, an analyst for A. G. Edwards, believes that Medtrans will begin paying a $1.00 per share dividend in two years and that the dividend will increase 6% annually thereafter. Bret Kimes, one of James' colleagues at the same firm, is less op

Dividend discount model

Assume RHM is expected to pay a total cash dividend of $5.60 next year and its dividends are expected to grow at a rate of 6% per year forever. Assuming annual dividend payments, what is the current market value of a share of RHM stock if the required return on RHM common stock is 10%?

Dividend Discount Model / Stock Valuation

Can you try this for number 2 it is what the prof sent: The URL for .1 is still current however the 2 URL dividenddiscountmodel.com is inactive and the NYSE web site for 3 has been updated and no longer has the easy links to the "trading floor" and the "anatomy of a trade." I did however find a pdf in the educational section

Determine the total and per share dividends for each class of stock for each year

A company had stock outstanding as follows during each of its first three years of operations: 2,000 shares of $10, $100 par, preferred stock and 50,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per share dividends for each class of stock for each year by co

Stock Price/ Portfolio beta / Investment

1.- Malenke's Incorporated paid a dividend (Do) of $2.00 this morning. Malenke's stockholders require a 20 percent of return. Calculate Malenke's stock price under the following scenarios: Malenke's earnings and dividends remain constant forever. Malenke's earnings and dividends grow at a rate of 10 percent forever. Malenke'