User Account

All Pages

Balance sheet showed total common equity

Assignment Help Financial Management
Reference no: EM131446827

Marcus Nurseries Inc's 2005 balance sheet showed total common equity of $2, 050,000, which included $1, 750,000 of retained earnings. The company had 100,000 shares of stock outstanding which sold at a price of $57.25 per share. If the firm had net income of $250,000 in 2006 and paid out $100,000 as dividends, what would its book per share be at the end of 2006, assuming that it netither issued nor retired any common stock?

Reference no: EM131446827

Questions Cloud

Begin saving for retirement : You will begin saving for retirement in a 401k account earning 9.93% with annual contributions of $8,500 for 35yrs. At that time, if you leave the money in the account and hope to live off of the annual payments for an additional 25yrs, what is the p..
What is the cash flow to creditors for the year : At the beginning of the year, a firm had total assets of $360,000, current liabilities of $28,700, and total equity of $229,000. At the end of the year, the total assets were $411,000, current liabilities were $31,600, and total equity was $246,000. ..
Is there an arbitrage : Consider an economy with two dates (t=0,1) and at t=1 there are three states. The following three stocks are traded: x1=(10,0,30) x2=(0,20,40) x3=(20,20,0) The t=0 prices of these stocks are given as follows (p1, p2, p3)=(12, 14, 8) Is there an arbit..
How does the law of unilateral and mutual mistake apply : You are an avid collector and painter of watercolors. You enjoy visiting all of the local and regional art galleries and, routinely, you purchase works of copies of the masters. One evening, at a local gallery, you make an offer to purchase what you ..
Balance sheet showed total common equity : Marcus Nurseries Inc's 2005 balance sheet showed total common equity of $2, 050,000, which included $1, 750,000 of retained earnings. The company had 100,000 shares of stock outstanding which sold at a price of $57.25 per share. If the firm had net i..
What is the enterprise value-ebitda multiple : The market value of the equity of Ginger, Inc., is $670,000. The balance sheet shows $42,400 in cash and $216,200 in debt, while the income statement has EBIT of $99,200 and a total of $155,400 in depreciation and amortization. What is the enterprise..
Should the firm offer the discount : Dome Metals has credit sales of $144,000 yearly with credit terms of net 120 days, which is also the average collection period. Assume the firm adopts new credit terms of 5/10, net 120 and all customers pay on the last day of the discount period. If ..
What is the average receivables balance : Dome Metals has credit sales of $396,000 yearly with credit terms of net 45 days, which is also the average collection period. Dome does not offer a discount for early payment, so its customers take the full 45 days to pay. What is the average receiv..
Explain how the lessee and the lessor analyze the situation : Is leasing a zero-sum game in the sense that any gain to the lessee is a cost to the lessor?If not, how might both parties gain from a lease transaction? In your answer, explain how the lessee and the lessor analyze the situation, why they might use ..

Reviews

Write a Review

Financial Management Questions & Answers

  Rate of return on the bonds realized by the investor

One year ago, a bank invested a sum of SEK 1 million in newly issued bonds, denominated in the same currency, with maturity five years hence. The bonds pay a yearly interest coupon calculated at the rate of 5% , and were issued at par. What would be ..

  Construct a payoff table showing the outcomes of expiration

What type of transaction should you execute to achieve the maximum benefit? Demonstrate that your strategy is correct by constructing a payoff table showing the outcomes of expiration.

  Discounted payback period if discount rate is zero percent

An investment project costs $10,000 and has annual cash flows of $3,000 for six years. What is the discounted payback period if the discount rate is zero percent? (Enter 0 if the project never pays back. What is the discounted payback period if the d..

  Change in the bonds price in dollars and percentage terms

A $2,300 face value corporate bond with a 6.2 percent coupon (paid semiannually) has 12 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 6.7 percent. The firm has recently gotten into some trouble and the rating ag..

  Straight-line amortization and disregard income tax

Barnett Corporation sold a $580,000, 7 percent bond issue on January 1, 2014. The bonds pay interest each June 30 and December 31 and mature 10 years from January 1, 2014. For comparative study and analysis, assume three separate cases. Use straight-..

  Create strategic plan

You have been asked to create a strategic plan for a new Renal Dialysis Center that will open in six months. Your plan needs to include and expand upon the six major components. Mission statement Vision statement Values Goals Objectives Action plan Y..

  What does it suggest regarding the bank''s risk exposure

Interpret the following earnings at risk data. What does it suggest regarding the bank's risk exposure? Earnings- at- Risk Interest Rate Change (%) 1 Year 2 Years + 1% shock + 2.4% + 4.9% - 1% shock - 1.7% - 5.5% - 1% yield curve inversion + 1.1% - 2..

  Returns that are negatively correlated with one another

Stocks A, B, and C all have an expected return of 10% and a standard deviation of 25%. Stocks A and B have returns that are INDEPENDENT of one another, i.e., their correlation coefficient, r, equals zero. Stocks A and C have returns that are NEGATIVE..

  What is the current share price

Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 14 percent, and the company just paid a di..

  Deduct entire amount of interest which was paid on home loan

In 2009, Mr. Smith purchased a principal residence for $1,500,000. He made a down payment of $300,000 and financed the remainder by borrowing $1,200,000 through a loan secured by the residence. In 2009, Mr. Smith paid interest that accrued on the ind..

  Highest operating cash flow

You are asked to select the proposed project A or B that has the highest Operating Cash Flow (OCF). Proposed Project A has estimated net income = - $3,000, depreciation expense of $7,200 and non-cash revenue = $1,000. Proposed Project B has estimated..

  Internal rate of return of replacing the existing machine

Premium Pie Company needs to purchase a new baking oven to replace an older oven that requires too much energy to run. The industrial size oven will cost $1,200,000. The oven will be depreciated on a straight-line basis over its six-year useful life...

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd