Ryan small a president of janis corporation hired you as a

Reference no: EM13579099

Ryan Small, a president of Janis Corporation, hired you as a financial consultant to analyze three propels made by the board of directors to raise additional funds of $3,000,000.

The Plans

Issued 12% preferred stock
Issued additional common stock at $10 par.
Issue 14%, 20 year bonds

Given

Tax rate, 48%
Estimated corporation earnings, $1,800,000 annually before bond interest and taxes.

Assume

- Before plan, 300,000 shares of $10 par common stock outstanding. All new stock would be issued at par.Please submit a written recommendation with supporting data to Mr. Small as soon as possible.

A. Read the complete problem and submit the written recommendation along with a table showing the earnings per share.

B. Suppose the company decided on issuing the bonds in the 3rd plan as of January 1, 2013 at 102, with semiannual payments made January 1 and July 1. Journalize the issuance of the bonds and the first semiannual interest payment.

Reference no: EM13579099

Questions Cloud

In 2013 the marion company purchased land containing a : in 2013 the marion company purchased land containing a mineral mine for 1900000. additional costs of 753000 were

Develop a scatter diagram for these data with height as the : the following data were collected on the height inches and weight pounds of women

Kline company an accrual basis calendar year corporation : kline company an accrual basis calendar year corporation reported 560000 net income before tax on its financial

Suppose an investment is normally distributed with mean 10 : question 1 explain and describea the difference between population mean and sample mean.b the concept of estimation

Ryan small a president of janis corporation hired you as a : ryan small a president of janis corporation hired you as a financial consultant to analyze three propels made by the

To check the claim the firm puts 101 of these tires on its : a trucking firm suspects that the variance for a certain tire is greater than 1000000. to check the claim the firm

A continuous random variable y has py gt 10 016 and p5 le : question 1 a continuous random variable y has py gt 10 0.16 and p5 le y le 10 0.15. finda py lt 10b py lt 5c py

Bargain rental car offers rental cars in an off-airport : bargain rental car offers rental cars in an off-airport location near a major tourist destination in california.

If the outcome is heads then a ball from urn 1 is selected : urn 1 has five white and seven black balls. urn 2 has three white and twelve black balls. we flip a fair coin. if the

User Account

All Pages