I am having trouble figuring out the effects of recapitalizing on the EPS. All equity firm, on 11/2/09 stockholder decide they don't want to put up 10,000000 and not borrow any debt so they recapitalize 5,000,000 in bonds at 5% with 5000,000 shares at $10. How do you calculate the threes scenarios EPS now that they have DEBT?
1) On May 18th, you purchased 1,000 shares of BuyLo stock. On June 5th, you sold 200 shares of this stock for $21 a share. You sold an additional 400 shares on July 8th at a price of $22.50 a share. The company declared a $.50 per share dividend on June 25th to holders of record as of Thursday, July 10th. This dividend is payabl
Security F has an expected return of 12% and a standard deviation of 9% per year. Security G has an expected return of 18% and a standard deviation of 25% per year. A portfolio is composed of 30% of Security F and 70% of Security G? If the correlation coefficient between the returns of F and G is 0.2, what is the standard deviat
You have been given information that if a student is a resident and they enroll for more than 12 hours, then their tuition will equal $120 plus $10 per hour for every hour greater than 12.
Solve the following problems showing all your work every step of the way. 1. You have been given information that if a student is a resident and they enroll for more than 12 hours, then their tuition will equal $120 plus $10 per hour for every hour greater than 12. Create an equation that would allow a student to simply plug
Computer Corp. reinvests 60 percent of its earnings in the firm. The stock sells for $50, and the next dividend will be $2.50 per share. The discount rate is 15 percent. What is the rate of return on the company's reinvested funds (i.e. the ROE)?
Please see attached document. Boyle's Home Center, a retailing company, has two departments, Bath and Kitchen. The company's most recent monthly contribution format income statement follows: Department Total Bath Kitchen Sales $5,000,000 $1,000,000 $4,000,000 Variable expenses 1,900,000 300,000 1.600,000 Contributio
Please see attached document. Steve has just returned from salmon fishing. He was lucky on this trip and brought home two salmon. Steve's wife, Wendy disapproves of fishing, and to discourage Steve from further fishing trips, she has presented him with the following cost data. The cost per fishing trip is based on an average
Caltech, Inc. produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow: Product CD DVD Selling price per pack $8.00 $25.00 Variable expense per pack $3.20
Simon Manufacturing Co. is planning to acquire Garfunkel Engineering in a two-step buyout. Garfunkel has 3,000,000 shares of common stock currently outstanding, and the market price is currently $25 per share. The first step of the buyout would offer to purchase 51% of Garfunkel Engineering common stock for $34 per share, The se
Please see the attached files. They include the instruction sheet and excel file (there are 2 sheets in this file). COST-VOLUME-PROFIT (BREAK-EVEN) Instructions and data to calculate break-even, target profit stated as before taxes and after taxes, under-performance losses for The Williams Company as well as preparing a
1-A firm has 100 shares of stock and 40 warrants outstanding. The warrants are about to expire, and all of them will be exercised. The market value of the firm's assets is $2,000, and the firm has no debt. Each warrant gives the owner the right to buy 2 shares at $15 per share. What is the price per share of the stock? a.$
Company just opened a new plant to manufacture antennas and the following cost and revenue data has been provided for the first month of the plant's operation: Beginning inventory: 0 Units produced: 40,000 Units sold:
As a division manager at Abel Athletics, you are expected to work with the Finance Department to develop financial forecasts for your division. Prepare a document that explains why forecasting is important to an organization. Explain the forecasting process, compare, and contrast it to the budgeting process. Discuss the role of
For the 12months ended December 31, 2005, Quintero Corporation Posted the following financial results: Sales of $96.8 million, cost of goods sold of $72.0 million, overhead expenses of $5.5 million, depreciation of $2.3 million, and interest expense of $7.0 million. During the Fiscal year, capital spending totaled $97.8 millio
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. The firm's most recent common stock dividend was $2.40 per share. Because of its maturity as well as its stable sales and earnings, the firm's management feels that dividends will remain at the current level
P4-48 Monthly loan payments Tim Smith is shopping for a used car. He has found one priced at $4,500.
P4-48 Monthly loan payments Tim Smith is shopping for a used car. He has found one priced at $4,500. The dealer has told Tim that if he can come up with a down payment of $500, the dealer will finance the balance of the price at a 12% annual rate over 2 years (24 months). a. Assuming that Tim accepts the dealer's offer, what
You purchase 500 shares of 2nd Chance Co stock on margin at a price of $53. Your broker requires you to deposit $11,000. Suppose you sell the stock at a price of $62, what is your return? What would your return have been had you purchased the stock without margin? What if the stock price is $44 when you sell the stock?
From our readings, course materials, and chats this week, please discuss the topic of surveys. In your posting ensure that you address the following:
From our readings, course materials, and chats this week, please discuss the topic of surveys. In your posting ensure that you address the following: What is the purpose of a survey? What are three examples of a survey and what potential purpose could each be used for? How can one work to ensure the participants of a surv
At the end of fiscal year 2006, Microsoft had the following account balances on its financial statements. (All figures $millions, source: MoneyCentral.com). Revenues 44,282 EBIT 16,472 Interest Expense
ARI has current sales of $50 mil. Sales are expected to grow to $75 mil. next year. ARI currently has accounts receivable of $10 mil, inventories of $15 mil and net fixed assets of $20 mil. These assets are expected to grow at the same rate as sales over the next year. Accounts payable are expected to increase from their cur
I need help to get started in preparing 1,000 to 1,200 not including title and references word in APA format with the references. Please see objective that I posted thank you. Task Name: Phase 1 Discussion Board Deliverable Length: 1,000-1,200 words, not including title page & reference Details: Operations deals with how
31. Hurd Company acquired a building valued at $160,000 for property tax purposes in exchange for 10,000 shares of its $5 par common stock. The stock is widely traded and selling for $15 per share. At what amount should the building be recorded by Hurd Company? $50,000 $150,000 $160,000
You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value. Reference: 06_02 Project A
On October 1, 2008, Chicago Corp. purchases 1,000 shares of the preferred stock of Denver Corp. for $40 per share. In addition, Chicago pays another $1,000 in commissions. On October 20, 2008, Denver delivers and pays a dividend of $1 per share. Chicago sells the stock on November 5, 2008, at a price of $45 per share. Require
Please see attached for spreadsheet information. Owen's Electronics has 9 operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed asset
Mo & Chris's Delicious Burgers, Inc., sells food to Military Cafeterias for $15 a box. The fixed costs of this operation are $80,000, while the variable cost per box is $10. What is the break-even point in boxes? Calculate the profit or loss on 15,000 boxes and on 30,000 boxes. What is the degree of operating leverage
The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez's autograph stamped on them. Each bat sells for $13 and has a variable cost of $8. There are $20,000 in fixed costs involved in the production process. Compute the break-even point in units. Find the sales (in units) needed to earn a profit of $15,000.
I am having all kinds of trouble with stock valuations. I have read my chapter material twice, but cannot figure the attached problems. Also, if this is calculated in excel, how to calculate? 1. General Cereal common stock dividends have been growing at an annual rate of 7 percent per year over the past 10 years. Current d
Front Beam Lighting Company has the following ratios compared to its industry for 2008. Front beam lighting Industry Return on assets 12% 5% Return on equity 16% 20% Explain why the return-on-equity ratio is so much l
Analyze and explain the relationship between risk and return in financial markets. As an investor what would some of your expectations be with regard to a high risk investment and low risk investment?