Purchase Solution

book-value balance sheet for University Products, Inc

Not what you're looking for?

Ask Custom Question

Examine the following book-value balance sheet for University Products, Inc. What is the capital structure of the firm based on market value? The preferred stock currently sells for $15 per share and the common stock for $20 per share. There are one million common shares outstanding.

BOOK VALUE BALANCE SHEET
(all values in millions)

Assets Liabilities and Net Worth
Cash and short-term securities $1 Bonds, coupon = 8% paid annually
maturity = 10 years, yield to maturity = 9% $10.0
Accounts receivable 3 Preferred stock (par value $20 per share) 2.0
Common stock (par value $.10) 0.1
Inventories 7 Additional paid in stockholders 9.9
Plants and equipment 21 Retained earnings 10.0
Total $32 $32.0

Solution

Problem 11-15
Instructions

Enter formulas to calculate the capital structure in dollars.

Capital Structure
Dollars Percent
Bonds FORMULA #DIV/0!
Preferred Stock FORMULA #DIV/0!
Common Stock FORMULA #DIV/0!
Total $0 #DIV/0!

Purchase this Solution

Solution Summary

The solution examines the book-value balance sheet for University Products, Inc.

Purchase this Solution


Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.