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Stock, Bond, Warrants
A firm as $2,000,000 in its common stock account and $20,000,000 in its paid-capital account. The firm issued 500,000 shares of common stock. What is the par value of the common stock? 1. The Burma Hat Company's warrant is trading for $10.20.
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What is the estimated intrinsic value per share of common stock?
As the value of firm also equals to the sum of market value of debt, market value of preferred stock and market value of common equity and the market value of debt and preferred equity is already given in the question, I subtracted this value from the
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Scotto Manufacturing
215164 P7-6 Common stock valuation?Zero growth Scotto Manufacturing is a mature firm in the machine tool component industry. P7-6 Common stock valuation?Zero growth Scotto Manufacturing is a mature
firm in the machine tool component industry.
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Optimal Capital Structure: Calculate the WACC
65%
Debt: The firm can sell a 15 year, $1,500 par value, 10 percent bond for $1,300
A flotation cost of 2% of the face value would be required in addition to the
discount of $200
Preferred Stock: The firm issues stock
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Determining the Current Capital Structure of a firm
Common Stock FORMULA
Total $0
Number of common stock outstanding = 0.1/$0.10 = 1.0 Million
Market value of common stock = $20 per share
Total market value of common stock = $20*1=$20 million
Number of preferred stock outstanding = 2.0/$20
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Finance MCQ: Common, preferred stock, equity capital, cumula
A firm has an outstanding issue of 1,000 shares of preferred stock with a $100 par value and an 8 percent annual dividend. The firm also has 5,000 shares of common stock outstanding.
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Intrinsic value per share of common stock
a. $66.12
b. $68.52
c. $71.00
d. $73.49
e.76.06 Value of equity = Value of firm - debt and preferred stock
Value of firm = PV of all free cash flows (FCF)
Since the FCFs are growing at a constant rate, we use the constant growth formula
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Determining Value of Preferred and common stock
209909 Determining Value of Preferred and common stock A firm has an expected dividend next year of $1.20 per share, a zero growth rate of dividends, and a required return of 10 percent. The value of a share of the firm's common stock is ______.
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Finance MCQ: investment banker, zero-growth, treasury stock,
Answer: 3
4.A firm has the balance sheet accounts, common stock, and paid-in capital in excess of par, with values of $40,000 and $500,000, respectively. The firm has 40,000 common shares outstanding.