Please answer in Excel showing work. Hewlard Pocket's market value balance sheet is given.AssetsLiabilities and Shareholders' EquityA. Original balance sheet$ 150,000950,000 Equity$ 1,100, 000 Value of firmCashDebtOther assetsValue of firm1,100,000$1,100,000Shares outstanding = 100, 000Price per share = $1,100, 000 / 100,000 = $11Pocket needs to hold on to $88,000 of cash for a future investment. Nevertheless, it decides to pay a cash dividend of $2.50 pershare and to replace cash as needed with a new issue of shares. After the dividend is paid and the new stock is issued:a. What will be the price per share? (Do not round intermediatecalculations. Round your answer to 2 decimal places.)b. What will be the total value of the stock held by new investors? (Enteryour answers in whole dollars, not in millions. Do not roundintermediate calculations. Round your answer to the nearest wholedollar amount.)c. What will be the wealth of the existing investors including the dividendpayment? (Enter your answers in whole dollars, not in millions. Donot round intermediate calculations. Round your answer to thenearest whole dollar amount.)

Share price: It is the current market value of the shares at which buyers and sellers trade. If the…

a. What will be the price per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will be the total value of the stock held by new investors? (Enter your answers in whole dollars, notin millions. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) c. What will be the wealth of the existing investors including the dividend payment? (Enter your answers in whole dollars, not in millions. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

a. What will be the price per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will be the total value of the stock held by new investors? (Enter your answers in whole dollars, notin millions. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) c. What will be the wealth of the existing investors including the dividend payment? (Enter your answers in whole dollars, not in millions. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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(a) Calculate current Ratio and Quick Ratio from the followinginformation:Total Assets Rs. 350000Fixed Assets Rs. 175000Investment Rs. 70000Fictitious Assets Rs. 5000Share holders fund Rs. 200000Long term Debts Rs. 100000Inventory Rs. 45000(b) From the following information calculate the stock turnoverratio.Sales Rs. 200000, G.P 25% on cost, Opening Stock was 1/3rd of thevalue of closing stock. Closing stock was 30% of sales
Proforma balance sheet for the upcoming year is given. The estimated net income is $2,621.60. If the company is planning pay $500 dividends, what should be the external financing needs (EFN)? Assets $20,972.80 Debt Equity $20,972.80 Total Total Proforma Balance Sheet Multiple Choice O O -$208.8. $208.8. $500. $291.2. -$500. $11,000.00 $10,181.60 $21,181.60
Hewlard Pocket's market value balance sheet is given. Assets Liabilities and Shareholders' Equity A. Original balance sheet Cash $ 150,000 Debt Other assets 950,000 Equity 1,100,000 Value of firm $1,100,000 Value of firm $1,100,000 Shares outstanding Price per share 100,000 $1,100,000 / 100,000 = $11 %D Pocket needs to hold on to $76,000 of cash for a future investment. Nevertheless, it decides to pay a cash dividend of $1.90 per share and to replace cash as needed with a new issue of shares. After the dividend is paid and the new stock is issued: a. What will be the price per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will be the total value of the company? (Enter your answers in whole dollars, not in millions.) c. What will be the total value of the stock held by new investors? (Enter your answers in whole dollars, not in millions. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) d.…
The company capital structure consists of debt 250000 at 0.084, preferred stock 230000 at 11% and common stock 120,000 at 14%, calculate a company's weighted average cost of capital Select one: O a. 0.1051 O b. 0.0629 OC 0.0771 d. 0.0349 e. All the given choices are not correct
You are given the following information: Stockholders? equity = GHS1,250; price/earnings ratio = 5; shares outstanding = 25; and %3D market/book ratio = 1.5. %3D Calculate the market price of a share of the company?s stock. O A. GHS 33.33 B. GHS 75.00 C. GHS 10.00 D. GHS166.67 O E. GHS133.32
Calculate the equity multiplier (total assets / total equity) for the firm below. Keep to 2 decimal places and do not convert it. ....for examples, if you calculate 6,000/400 = 15, you should enter 15 into BB to be marked correct. Sales $5,000 COGS $1,200 Depreciation $800 Interest $500 Net Income $200 Total Assets 6000 Total Equity 1300
Assume that you are a consultant to Morton Inc., and you have been provided with the following data: D0 - $1.4: PO - $36; and g - 4.8% (constant). What is the cost of equity from retained earnings based on the DCF approach? OO Ⓒ948% 8.88% Go htt
Calculate the equity multiplier (total assets / total equity) for the firm below. Make sure you do NOT convert your answer and keep 2 decimals for your final answer.....for examples, if you calculate 6,000/400 = 15, you should enter 15 into BB to be marked correct. Sales $5,000 COGS $1,200 Depreciation $800 Interest $500 Net Income $200 Total Assets 5000 Total Equity 1400
The company capital structure consist of debt 380000 @ 4.05%, common stock 220000@12.09% and preferred stock 400000 @ 19.50%, calculate company's weighted average cost of capital Select one: O a. 12.99% O b. 11% O c. 9.50% O d. None O e. 11.99%
Compute the free cash flow to equity for a firm with the following conditions (each account is reported on a per share basis): Net Income $9.25 Depreciation $1.52 Proceeds from a Bond Issue $3.00 Total Debt Repayments $0.45 Change in Net Working Capital - $1.00 $15.22. O $14.32. $13.22. $12.32.
The discounted cash flow model and the corporate valuation model are the most widely used valuation techniques. Often these valuations are accompanied by market multiple analysis, which is based on the fundamental concept that sinar assets should have simlar values. Carlson Co, is a privately owned firm with few investors. Investors forecast their eamings per share (EPS) to reach $3 this coming year The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 11. The estimated intrinsic value of Carlson Co.'s stock will be Market multiple analysis is also used to calculate the value of a company, which is further used to calculate the intrinsic vakre per share of the fim Suppose you have the information given in the following table for Company X. EBITDA Total value of equity Total firm value per share. Year 1 Year 2 $10,680 $12,375 $121,500 $112,500 $182,250 $202,500
Assume Meyer Corporation is 100 percent equity financed. Calculate the return on equity, given the following information: Earnings before taxes 1,500 Sales 5,000 Dividend payout ratio 60% Total assets turnover 2 Tax rate 30% (Ctrl) - e to search insert IDI @ %23 $ 6 7 3 4 4 5 6 P W E R S D G H M -

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