Reference no: EM132955522
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:
Preferred 2% Stock, $75 par (50,000 shares authorized, 25,000 shares issued)$1,875,000
Paid-In Capital in Excess of Par-Preferred Stock225,000
Common Stock, $25 par (500,000 shares authorized, 260,000 shares issued)6,500,000
Paid-In Capital in Excess of Par-Common Stock850,000
Retained Earnings20,034,000
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
- Issued 50,000 shares of common stock at $30, receiving cash.
- Issued 13,000 shares of preferred 2% stock at $92.
- Purchased 30,000 shares of treasury common for $28 per share.
- Sold 15,000 shares of treasury common for $31 per share.
- Sold 10,000 shares of treasury common for $26 per share.
- Declared cash dividends of $1.50 per share on preferred stock and $0.04 per share on common stock.
- Paid the cash dividends.
Required:
Problem 1: Journalize the entries to record the transactions.
a. Issued 50,000 shares of common stock at $30, receiving cash.
b. Issued 13,000 shares of preferred 2% stock at $92.
|
Find debt-to-value ratio
: Find debt-to-value ratio if Shepard borrows the amount you found in a). Assume that Shepard is expected to grow at 3% annually perpetually
|
|
What is the delta of the option
: The risk-free rate is 4% and the volatility is 25%. The stock price is $56. What is the delta of the option?
|
|
Which number is closest to the delta of the option
: A call option on a non-dividend-paying stock has a strike price of $100 and a time to maturity of 1 year. The risk-free rate is 0% and the volatility is 20%.
|
|
What will the new share price
: If KD can repurchase its existing shares at $20 per share, what will the new share price (of remaining shares) be after the transaction
|
|
Journalize entries to record transactions of for inc parks
: Journalize the entries to record transactions. Issued 50,000 shares of common stock at $30, receiving cash. Issued 13,000 shares of preferred 2% stock at $92.
|
|
What is the stock expected price 5 years
: A stock currently sells for $27.27 per share. The dividend is projected to increase at a constant rate of 475% per year.
|
|
What is the firm fixed-charge coverage ratio
: A firm has EBIT of $1,000,000 and depreciation expense of $400,000. Fixed charges total $600,000. Interest expense totals $70,000. What is the firm's ratio
|
|
Find dividends per share for preferred and common stock
: Sandpiper Company has 10,000 shares of cumulative preferred 2% stock, Determine the dividends per share for preferred and common stock for each year.
|
|
Give three examples of non-financial information
: Give three examples of non-financial information that could be useful for the managers of Tennis Australia in running the Australian Open tennis tournament each
|