After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Cornwall Enterprises. Unfortunately, you will be the only person voting for you. If the company has 405,000 shares outstanding, and the stock currently sells for $46, how much will it cost you to buy a seat if the company uses straight voting? (Do not round intermediate calculations.) Total cost
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- H5. The shareholders of the Pineapple Company need to elect seven new directors. There are 810,000 shares outstanding currently trading at $41 per share. You would like to serve on the board of directors; unfortunately, no one else will be voting for you. a. How much will it cost you to be certain that you can be elected if the company uses straight voting? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. How much will it cost you if the company uses cumulative voting? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) Show proper step by step calculationStockholder Z what to be elected as a director in the corporation. However, he has only at least 10,000 shares, which is equivalent to 10,000 votes. He needs at least 20,000 votes to get the highest number of votes. As the financial adviser of Z, what will be your advice. Explainfind your answer to be R2.72. If you do not agree, check with your Teacher). Will original shareholders be happy with this? Will the new shareholders be happy with how much will each shareholder receive for each share owned by him? (You shoua The Shareholders Equity Will be Tmade Shares at issue price R4 400 000 Retained income Cwele March 20.6 the ach. At the end of their fir he Retained income accou R500 000 The average issue price of the shares is: R4 400 000+ 1 800 000 shares = 244.44 cents an 1 March 20.7, the com ssue price of 490 cents e: Required: 1.17.1 The relevant ent 1.17.2 The posting to th 1.17.3 The effect on th TASK 1.16 Balance Sheet 1.17.4 Calculate the a for each share Delebi Ltd was formed with an authorised share capital of 500 000 ordinary shares 1 March 20.1 the company issued 300 000 ordinary shares at an issue price of 100 each. At the end of their first year of trading, after paying tax and dividends, the bala the Retained income account was R200 000. 1.17.6…
- F2. Shares in LMN Corporation are selling for €40 each and there are 20,000 shares outstanding. LMN use a cumulative voting system to elect directors and they currently have three directors up for election. You would really like to ensure yourself a seat on the board. How much will it cost you to ensure a seat and how many shares will you need to buy, assuming you currently have no shares in LMN Corporation? What would it cost if LMN Corporation used a straight voting system insteadQuestion 6 You are interested in short selling 200 shares of Queen Company Limited. The initial margin is 55% and the maintenance margin is 35%. You sell the shares at $xx per share (xx is the last two digits of your student ID number, if the last two digits are 00, use 100). i) ii) iii) How much money do you have to add to your account and how much money is in your account in total? At what price will you get a margin call? If the price of the stock immediately increased by 30%, and you bought it back at that price, how much you lose (in $) and what would be the rate of return (in %) on your investment (assume no fees or interest costs)?The Financial Sector-End of Chapter Problem You are discussing buying stocks with a friend and mention that you want to buy a few shares of Amazon stock. Your friend says that's a terrible idea because Amazon has never paid dividends to its shareholders so you would never receive any of Amazon's profits or make any money off the stock. What might you say to your friend to defend your desire to purchase a few shares of Amazon stock? You explain that the price of Amazon stock will always have to rise because dividends are not paid. the fundamental value of the stock is not determined by the dividends paid, but by the present value of future profits. purchasing stock is better than purchasing bonds because stockholders are the first in line to get paid if the company goes bust. buying a few shares will give you a significant say in how Amazon will be run in the future.
- Scenario 1. Your grandparents gave you ₱ 175,000.00 on your 16th birthday. You were instructed to invest the money so that the earnings can be used to pay for your tuition fee in college. Having heard about the risks and rewards of the stock market from your parents, you become interested in buying stocks in a particular company. Below are the options are given to you by your parents: Option 1: Company ABC’s selling stock is ₱ 1,500.00 per share that will have a dividend of ₱200.00 per year. The stock can be sold after two years at ₱2,000.00 and the market requires a rate of return of 15%. Option 2: Company XYZ’s selling stock is ₱ 1,000.00 per share that will have a dividend of ₱180.00 per year. The stock can be sold after two years at ₱2,000.00 and the market requires a rate of return of 7%. In which company will you invest your money? Why? (WITH SOLUTION)A Moving to another question will save this response. uèstion 3 Jack bought a stock and paid $50 per share. Two years later, he sold the stock for $60 after receiving cash dividends totaling $2 per share. What is the percentage return on this investment? O 24% O $12 O 20% O 0.12 O 10% A Moving to another question will save this response. MacBook Air 吕口 F3 F4 F5 & $ 4 #3 3 5 W E R T. Y GHi want accurate answer with proper explanation no handwriting only typed answer QUESTION 2 "You founded your firm with a contribution of $500,000, receiving 2,000,000 shares of stock. Since then, you sold 6,000,000 stocks to Angel Investors. Now you are considering raising more capital from a Venture Capitalist. They will invest $7,000,000 and would receive 5,000,000 newly issued shares. If this is the VC's first investment in the company, what percentage of the firm will they end up owning? Note: Express your answers in strictly numerical terms. For example, if the answer is 5 percent, enter 0.05 as an answer."
- You own shares in Yahoo that were purchased at a price of $25 per share. Microsoft has offered to purchase Yahoo and buy your shares at a price of $30 per share. What will be your return if you tender your shares to Microsoft and the deal is completed? O A. 21% OB. 19% OC. 20% OD. 14%Give typing answer with explanation and conclusion 1. To incentivize our employees, we are considering issuing them employee equity. The average employee would be issued stock options to purchase 800 shares at our current stock price of $210 per share. We are hopeful that the Smoothie business will catapult us to $230 per share in the future but recognize the risks. If an employee exercises the options at $210 per share, how much would the employee make before taxes?Scenario 1.Your grandparents gave you ₱ 175,000.00 on your 16th birthday. You wereinstructed to invest the money so that the earnings can be used to pay for yourtuition fee in college. Having heard about the risks and rewards of the stockmarket from your parents, you become interested in buying stocks in aparticular company. Below are the options given to you by your parents:Option1: Company ABC’s selling stock is ₱ 1,500.00 per share that will have adividend of ₱ 200.00 per year. The stock can be sold after two years at ₱2,000.00and the market requires a rate of return of 15%.Option2: Company XYZ’s selling stock is ₱ 1,000.00 per share that will have adividend of ₱ 180.00 per year. The stock can be sold after two years at ₱2,000.00and the market requires a rate of return of 7%.In which company will you invest your money? Why?
