At year end, National Corporation balance sheet showed total assets of P70,000,000, total liabilities of P35,000,000, total preferred share capital of P10,000,000, and 1,000,000 shares of common stock outstanding. If National Corporation could sell its assets for P60,500,000, its liquidation value per share of common stock is
Q: Related to Solved Problem 3.3] For each of the following situations, choose the equation needed to…
A: Cost of debt (yield to maturity) refers to the total return generated by a bond until it matures.…
Q: Is it because: a. The capital gain will be different because the dividend did not change. or…
A: Capital gain can be calculated s follows: Capital gain=(Sale price - Cost price)Cost price* 100
Q: Consider four different stocks, all of which have a required return of 19% and a most recent…
A:
Q: mount saved on interest
A: Amortized loan refers to the amount of loan which requires regular monthly payments. Every payment…
Q: Production has indicated that they can produce widgets at a cost of P4.00 each if they lease new…
A: In a production, total benefit comes from sales revenue, which is the units sold times price per…
Q: FarCry Industries, a maker of telecommunications equipment, has 6 million shares of common stock…
A: The following information is provided in the question: Common stock outstanding=6 million Preferred…
Q: You want to buy a new machine. It's going to cost $200,000 and have a salvage value of $15,000 after…
A: Here, Cost = $200,000 Salvage value = $15,000 Time period = 7 years Annual operating costs =…
Q: Your company is planning to open a new gold mine which will cost $3million to build with the…
A: It is a kind of discount rate. It is quite handy when comparing large number of projects. It is…
Q: Use the unpaid balance method to find the finance charge on the credit card account. Last month's…
A: Unpaid balance method is the method in which finance charge is calculated on the previous balance…
Q: How much money should be on the account today in order for annually withdrawals of $100.00 to be…
A: Here we will use the concept of time value of money. As per the concept of time value of money the…
Q: The market price is $850 for a 12-year bond ($1,000 par value) that pays 11 percent annual…
A: Given, Price of the bond is $850 Face value of bond is $1000
Q: D3) Finance Please explain negative growth equity markets and share valuation.
A: Negative growth equity markets-A negative price-to-earnings ratio (P/E) is feasible for a stock. A…
Q: Edmonds Corporation's sales are expected to increase by 10% from $4.75 million in 2016 to 5.225$…
A: Increase in sales - 10% Sales in 2016 - $4.75 million Sales in 2017 - $5.225 million Total assets -…
Q: PI statistic for Project Z
A: PI stands for profitability index and refers to the measurement of the project by dividing the…
Q: Using Exhibit 5.7, calculate the three-month forward premium or discount for the Swiss franc versus…
A: Compute the three-month forward premium or discount as follows: Forward (n, Swiss franc) = Forward…
Q: in 12 years, but can be called in 6 years at a call price of R1070. What value do you need to input…
A: Yield To Call: It represents the yield/expected return to the bondholder if the bond is held till…
Q: All techniques Rieger International is evaluating the feasibility of investing $115,000 in a piece…
A: 1. Payback Period is the length of time required to recover the cost of Investment. (a) When Cash…
Q: 1. Corn is an essential commodity in a small Central American country and the government intends to…
A: Solution:- Subsidy means the benefit granted by the government by decreasing the price, while by…
Q: 6.6 Consider the accompanying cash flow diagram. Compute the equivalent annual worth at i = 10%.…
A: To find the Equivalent annual worth (EAW), we need to first find the Net present value. Tabulate…
Q: Which of the following provides the best description of the liquidity ratios? Current ratio is the…
A: Solution:- Liquidity ratio measures the liquidity of a firm, i.e. how efficiently a firm is able to…
Q: The payback period for each project The accounting rate of return for each project The net present…
A: Net present value (NPV) of an alternative/project refers to the variance between the initial…
Q: ect all of those that are correct: A) prices of zero coupon bonds increase as the time to maturity…
A: Zero coupon bonds are those bonds which do not pay any coupon payment but pay the face value on the…
Q: Finance What is the expected standard deviation of stock A's returns based on the information…
A: To Find: Standard Deviation
Q: (Bond valuation relationships) The 13-year, $1,000 par value bonds of Waco Industries pay 12…
A: Yield to maturity (YTM) on the bond is the arte of return which investors expect when they hold the…
Q: Use the savings plan formula to answer the following question You put $300 per month in an…
A: Future value of investment can be calculated as: = Annuity payment* Future value Annuity Factor…
Q: What is meant by a banker’s acceptance?
A: Money market instruments refers to financial instruments whose maturity period lies between 30 to…
Q: How do you segment the International Financial Markets?
A: Main segments of international financial segments are 1. Buying segment 2. Selling segment 3.…
Q: Which of the following statements is true? OA. When a large proportion of income is spent on a…
A: To find: We have to answer in this question which of the statement is true.
Q: What is Commercial paper?
A: Short Term Debt: Also referred to as current liabilities, they are issued by the business to…
Q: (Yield-To-Maturity) for $990. You have just bought a 5% coupon $1,000 face-value bond with 3 years…
A: Coupon rate is 5% Face Value is $1,000 Time period is 3 years Price of bond is $990 To Find: YTM…
Q: Becky Martinez owns stock in GBX Corporation. The GBX stock has a current market value of $70 a…
A: The following information has been provided in the question: Current market value of GBX stock =$70…
Q: You recently bought a house that has a baseboard electric heating system. The system is rather…
A: Replacement Decision- If asset is replaced with the new and upgraded version then such replacement…
Q: Shredder Frets, a brand-new manufacturer of guitars is looking at what price to charge for its new…
A: Break Even Point - It is the level of sales where the company earn no profit and no loss. at this…
Q: o decrease costs of operating a lock in a large river, a new system of operation is proposed. It…
A: The cost of any project or asset is capitalized if the benefits from such cost are going to be…
Q: Housing and Development Board (HDB) Ltd also currently sells corporate bonds to investors for…
A: Bonds are debt instruments. They are issued by entities and the issuing entities have to pay…
Q: ABC Medical has invested RM2 million in a Health Diagnostic Support system. To maintain the system,…
A: The return earned by the company on the initial investment expressed in percentage is known as…
Q: You plan to deposit $4,000 today, $2,000 in one year and $4,000 in two years into an account earning…
A: Here, Deposit Amount today (D0) is $4,000 Deposit Amount in One Year (D1) is $2,000 Deposit Amount…
Q: As an investment advisor, you have been approached by a client called Ramesh, who wants some help in…
A: Future value of annuity Annuity is a series of equal payments at equal interval over a specified…
Q: Taylor Swift owns 2,000 shares of QRS Moving Company. QRS pays a yearly dividend of $1.50 per share.…
A: Dividend per share is the amount which is declare by the company to its shareholder, it is…
Q: our firm is considering purchasing an old office building with an estimated remaining service life…
A: Maximum amount that the firm will be willing to pay for the building and lot at the present time is…
Q: Which of the following factors influences the spread between forward and spot rates? a. which…
A: Spot rate is the current rate of the stock or bond or currency and forward rate is the price that is…
Q: ed and his wife have applied for a $350,000 mortgage to be amortized over of 2.8% and a term of 5…
A: GDS ratio that total payment of mortgage and other related housing expenses to the monthly income…
Q: Doris purchased a Steinway concert piano for $132,000 with a down payment of 25%, and a loan for the…
A: Cost of piano is $132,000 Down payment is 25% Equal Monthly Payment is $1,650 Interest rate…
Q: Consider a home mortgage of $225,000 at a fixed APR of 3% for 25 years. a. Calculate the monthly…
A: In case of a home mortgage fixed monthly payments are made. The fixed monthly payment consists of…
Q: Why is private equity a possible solution for raising equity (for non-issuable companies)?
A: Private equity refers to the investment which is invested in private company by a group pf person…
Q: An investor buys a $1000 face value bond paying a semi-annual coupon at 9% APR compounded…
A: We need to use RATE function in excel to calculate realized Formula is =RATE(NPER,PMT,-PV,FV)
Q: Calculate payback for each project. Do not round intermediate calculations. Round your answers to…
A: According to the requirement of the question, question 4 and 5 given in the image and the ones…
Q: Determining Funded Status, Recording Pension Expense, Preparing Worksheet Rico Corporation…
A: a. In its December 31, 2020, balance sheet, net pension asset is $ 10,000.(85000-75000) Balance…
Q: A university is trying to determine how much it should charge for tickets to basketball games to…
A: Solution to question: Step 1 Calculation of Total cost Information Given: Actual Cost of the…
Q: It is the year 2021 and Pork Barrels, Inc., is considering construction of a new barrel plant in…
A: Given: Year Particulars Amount 0 Initial investment -€ 95 1 Cash inflows € 25 2 Cash…
At year end, National Corporation
Step by step
Solved in 2 steps with 2 images
- Kremlin Company reported the following shareholders' equity at year-end: Share capital, P30 par value, P3,000,000; Share premium, P600,000; Retained earnings, P4,200,000. A 20% share dividend was declared and distributed at year-end when entity's share was selling at P65. What amount should be reported as share capital outstanding?At year end, National Corporation balance sheet showed total assets of P70,000,000, total liabilities of P35,000,000, total preferred share capital of P10,000,000, and 1,000,000 shares of common stock outstanding. Based on this information, National Corporation's book value per share of common stock is ________. Format: 11Ared Company showed the following shareholders’ equity on January 1, 2020: Share capital 1,000,000 Share premium 2,000,000 Retained earnings 4,000,000 The entity had 400,000 authorized shares of P5 par value, of which 200,000 shares were issued and outstanding. On July 1, 2020, the entity declared a property dividend of inventory payable on March 1, 2021. The inventory had a P1,200,000 carrying amount and a fair value less cost to distribute of P1,000,000 on July 1, 2020. The fair value less cost to distribute is P1,500,000 on December 31, 2020, and P900,000 on March 1, 2021. The net income for 2020 was P3,000,000. - What is the carrying amount of the inventory on December 31, 2020? - What is the amount to be recognized in profit or loss for the distribution of the non- cash dividend?
- Ared Company showed the following shareholders’ equity on January 1, 2020: Share capital 1,000,000 Share premium 2,000,000 Retained earnings 4,000,000 The entity had 400,000 authorized shares of P5 par value, of which 200,000 shares were issued and outstanding. On July 1, 2020, the entity declared a property dividend of inventory payable on March 1, 2021. The inventory had a P1,200,000 carrying amount and a fair value less cost to distribute of P1,000,000 on July 1, 2020. The fair value less cost to distribute is P1,500,000 on December 31, 2020, and P900,000 on March 1, 2021. The net income for 2020 was P3,000,000. - What amount should be reported as retained earnings on December 31, 2020? - What is the dividend payable on December 31, 2020?On January 1, 2020, Leilanie Company reported the following shareholders' equity: Share capital 1,500,000 Share premium 3,000,000 Retained earnings 5,000,000 The entity had 400,000 authorised shares of P5 par value, of which 300,000 shares were issued and outstanding. On March 1, the entity acquired 50,000 shares for P10 per share to be held as treasury. On July 1, the entity declared a property dividend of inventory payable on July 31. The inventory had a P1,200,000 carrying amount anda fair value of P1,500,000 on July 1 The net income for 2020 was P3,000,000. How much is the appropriated retained earnings? Select the correct response O500,000 O 400.000 O 250,000 O 450,000 < Previous ContinueOn January 1, 2020, LeiLanie Company reported the following shareholders' equity: Share capital 1,500,000 Share premium 3,000,000 Retained earnings 5,000,000 The entity had 400,000 authorised shares of P5 par value, of which 300,000 shares were issued and outstanding. On March 1, the entity acquired 50,000 shares for P10 per share to be held as treasury. On July 1, the entity declared a property dividend of inventory payable on July 31. The inventory had a P1,200,000 carrying amount and a fair value of P1,500,000 on July 1. The net income for 2020 was P3,000,000 How many shares are issued and outstanding? Select the correct response: O250,000 O 350,000 O 300,000 O 400,000 < Previous
- On January 1, 2020, LeiLanie Company reported the following shareholders' equity: Share capital 1,500,000 Share premium 3,000,000 Retained earnings 5,000,000 The entity had 400,000 authorised shares of P5 par value, of which 300,000 shares were issued and outstanding. On March 1, the entity acquired 50,000 shares for P10 per share to be held as treasury. On July 1, the entity declared a property dividend of inventory payable on July 31. The inventory had a P1,200,000 carrying amount and a fair value of P1,500,000 on July 1. The net income for 2020 was P3,000,000. How much is the total shareholders' equity? Select the correct response: O 11,000,000 10,500,000 9,500,000 O 10,000,000 < Previous 3msThe balance in the retained earnings of HAWKEYE Corporation on December 31, 2020 and 2021 respectively are P720,000 and P582,000. The net income for 2021 was P500,000. A share dividend was declared and distributed which increased ordinary share capital by P200,000 and share premium by P110,000. A cash dividend was declared and paid. What is the amount of cash dividends declared and paid? a. ₱ 638,000 b. ₱ 442,000 c. ₱ 328,000 d. ₱ 248,000On December 31, 2020, Loving Company showed shareholder’s equity ofP5,000,000. The share capital of P3,000,000 remained unchanged duringthe year. The transactions which affected the equity were: An adjustmentof retained earnings, beg. for under depreciation: P200,000; gain on saleof treasury shares: P300,000; cash dividends declared: P400,000; netincome for the current year: P800,000. What is the retained earningsbalance on January 1, 2020? A. 1,400,000B. 1,500,000C. 1,700,000D. answer not given
- The Gangnam Company began operations in January 2019 and reported the following results for each of its three years of operations. 2019 – P520,000 loss; 2020 – P80,000 loss; 2021 – P1,600,000 profit At December 31, 2020, Gangnam Company’s capital accounts were as follows: 8% Cumulative Preference Share Capital, P100 par, 50,000 shares authorized, issued and outstanding- P5,000,000; Ordinary Share Capital, P10 par, 1,000,000 shares authorized, 750,000 shares issued and outstanding- P7,500,000 Gangnam Company has never paid a cash or bonus issue and there has been no change in its capital accounts since it began operations in 2019. The corporation law permits dividends only from retained earnings.What is the book value of the ordinary share at December 31, 2020 assuming that the preference share has a liquidating value of P106 per share?Fisher Company had the following share capital as of December 31, 2021: Cumulative preference share capital, P100 par value, 50,000 shares outstanding, 5% dividend rate, each share convertible into four ordinary shares Ordinary share capital, P50 par, 500,000 shares authorized, 200,000 shares outstanding 5,000,000 10,000,000 The entity reported a net income of P5,400,000 for the current year. Compute for the basic and diluted earnings per share based on the following independent scenarios: A. The preference shares were issued in the prior year at par value. BEPS = DEPS B. The preference shares were issued on April 1, 2021 at par value. BEPS = DEPS =The accounts below appear in the December 31, 2020 trial balance of A Company: Authorized share capital, P30,000,000 Unissued share capital, P5,000,000 Subscribed share capital, P3,000,000 Subscription receivable, P1,000,000 Share premium, P10,000,000 Retained earnings unappropriated, P6,000,000 Retained earnings appropriated, P2,000,000 Revaluation surplus, P4,500,000 Treasury shares, at cost, P1,500,000 In its December 31, 2020 statement of financial position, A should report total equity at