Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - The Rolls Company belongs to a risk class for which the appropriate discount rate is 10 percent. Rolls currently has 161,000 outstanding shares selling at $120 each. The firm is contemplating the declaration of a $4 dividend at the end of the fiscal year that just began. Assume there are no taxes on dividends. Answer the following questions based on the Miller and Modigliani (MM) model, which is discussed in the text.
a. What will the price of the stock be on the ex-dividend date if the dividend is declared?
b. What will the price of the stock be at the end of the year if the dividend is not declared?
c. If Rolls makes $3.6 million of new investments at the beginning of the period, earns a net income of $2.5 million, and pays the dividend at the end of the year, how many shares of new stock must the firm issue to meet its funding needs?
d. Is it realistic to use the MM model in the real world to value stock?
Calculate the book value at the end of year. A machine that cost$136,000 has an estimated residual value of $8,000 and an estimated useful life of 8 years.
Assume that the company will prepare a budgeted statement of financial position as of September 30. Compute the accounts receivable as of that date.
What is the present value of a $100,000 withdrawal the day that was deposited 28 years ago in an account with an annual interest rate of 3%
Prepare the operating activities section of the statement of cash flows using the direct method. Operating expenses Salaries expense $290,440
Nordstrom, Inc. operates department stores, Compute working capital and the current ratio at the beginning of the year and at the end of the year.
What is the trend, in each company, in total revenues over the three years and what is the trend in profit margin over the three years?
computation of pay back period.accounting rate of return payback and npv busy beaver corp. is interested in reviewing
Shareholders in exchange for $4,000,000 cash. The shares are $1 par common shares. What is needed in the journal entry to record this issuance of shares?
Equipment was sold at the price of $750,000. Show in the general journal the record of sale and an entry recognizing the expense of the machine sold.
Variable costs are $90 per unit and fixed costs are $4,000. The company expects to sell 200 units this year. How many units must we sell to earn a profit?
Nike Corporation operates a number of branches, What is the adjusted balances of the Home Office and Davao Branch reciprocal accounts on December 31, 2011?
Determine the amount paid to Colter under each of the Revaluation of asset is recorded; "Bates, Capital" account was credited by P66,000.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd