What is the net asset value of an investment company with $9,600,000 in assets, $610,000 in current liabilities, and 1,260,000 shares outstanding? Round your answer to the nearest cent. $ per share
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Problem 17-01 What is the net asset value of an investment company with $9,600,000 in assets, $610,000 in current liabilities, and 1,260,000 shares outstanding? Round your answer to the nearest cent. $ per share
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- Assume that you have just purchased some shares in an investment company reporting $975 million in assets, $75 million in liabilities, and 75 million shares outstanding. What is the net asset value (NAV) of these shares? $14 $1 $12 $13eBook Problem 21-01 HBM, Inc has the following capital structure: Assets $ 550,000 Debt $ 137,500 Preferred stock 82,500 Common stock 330,000 The common stock is currently selling for $16 a share, pays a cash dividend of $0.80 per share, and is growing annually at 5 percent. The preferred stock pays a $6 cash dividend and currently sells for $93 a share. The debt pays interest of 6.5 percent annually, and the firm is in the 30 percent marginal tax bracket. What is the after-tax cost of debt? Round your answer to two decimal places. % What is the cost of preferred stock? Round your answer to two decimal places. % What is the cost of common stock? Assume that the current $0.80 dividend grows by 5 percent during the year. Round your answer to two decimal places. % What is the firm’s weighted-average cost of capital? Round your answer to two decimal places. %Assume that you have just purchased some shares in an investment company reporting $570 million in assets, $24 millon in liabilities, and 36 million shares outstanding. What is the Net Asset Value (NAV) of these shares? Multiple Cholce $22.25 $9.58 $1.50 $1517
- 15- The share capital of a firm is OMR 160000 and the net profit is OMR 32000. What is the return on equity? a. 15 percent b. 30 Percent c. 20 Percent d. All*** 1. Ch12 Financial Planning Exercise 1 eBook Chapter 12 Financial Planning Exercise 1 Ranking investments by expected returns What makes for a good investment? Use the approximate yield formula or a financial calculator to rank the following investments according to their expected returns. Round the answers to two decimal places. Do not round intermediate calculations. a. Buy a stock for $45 a share, hold it for 3 years, then sell it for $80 a share (the stock pays annual dividends of $3 a share). d b. Buy a security for $20, hold it for 3 years, then sell it for $60 (current income on this security is zero). Do not round intermediate calculations. % c. Buy a 1-year, 12 percent note for $940 (assume that the note has a $1,000 par value and that it will be held to maturity). Do not round intermediate calculations. Grade it Now Save & Continue Continue without saving NOV 14 O Ctv A W MacBook AireBook Problem 11-03 An investor with a required return of 12 percent for very risky investments in common stock has analyzed three firms and must decide which, if any, to purchase. The information is as follows: Firm A B C Current earnings $ 2.50 $ 3.20 $ 6.60 Current dividend $ 1.40 $ 2.30 $ 7.50 Expected annual growth rate in 5 % 2 % -2 % dividends and earnings Current market price $ 29 $ 28 $ 59 What is the maximum price that the investor should pay for each stock based on the dividend-growth model? Round your answers to the nearest cent. Stock A: $ Stock B: $ Stock C: $ If the investor does buy stock A, what is the implied percentage return? Round your answer to two decimal places. % If the appropriate P/E ratio is 13, what is the maximum price the investor should pay for each stock? Round your answers to the nearest cent. Stock A: $ Stock B: $ Stock C: $ If the appropriate P/E ratio is 7, what…
- eBook Problem 10-04 Firm A had the following selected items on its balance sheet: Cash $ 28,000,000 Common stock ($50 par; 2,100,000 shares outstanding) 105,000,000 Additional paid-in capital 16,800,000 Retained earnings 64,000,000 How would each of these accounts appear after: a cash dividend of $1.5 per share? Round the number of shares outstanding to the nearest whole number and the other answers to the nearest dollar. Cash $ Common stock ($ par; shares outstanding) $ Additional paid-in capital $ Retained earnings $Begin with the partial model in the file Ch02 P21 Build a Model.xlsx on the textbooks Web site. a. Using the financial statements shown here for Lan Chen Technologies, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2020. The federal-plus-state tax rate is 25%. b. Assume there were 15 million shares outstanding at the end of 2019, the year-end closing stock price was 65 per share, and the after-tax cost of capital was 10%. Calculate EVA and MVA for 2020. Lan Chen Technologies: Income Statements for Year Ending December 31 (Millions of Dollars) Lan Chen Technologies: December 31 Balance Sheets (Thousands of Dollars)eBook Problem 14-01 Big Oil, Inc. has a preferred stock outstanding that pays a $9 annual dividend. If investors’ required rate of return is 5 percent, what is the market value of the shares? Round your answer to the nearest cent. $ If the required return declines to 2 percent, what is the change in the price of the stock? Round your answer to the nearest cent. The price by $ .
- eBook Problem 10-03 Jersey Medical earns $11.50 a share, sells for $90, and pays a $8 per share dividend. The stock is split two for one and a $4 per share cash dividend is declared. What will be the new price of the stock? Round your answer to the nearest dollar. $ If the firm's total earnings do not change, what is the payout ratio before and after the stock split? Round your answers to one decimal place. Payout ratio before the split: % Payout ratio after the split: %Problem 17-10 Marin, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 960 shares @ $15 each $14,400 Rogers Company 860 shares @ $19 each 16,340 Chance Company 480 shares @ $8 each 3,840 Equity investments @ cost 34,580 Fair value adjustment (7,780 ) Equity investments @ fair value $26,800 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Marin, Inc. sold 300 shares of Chance Company for $12 per share. 3. On May 15, Marin, Inc. purchased 110 more shares of Evers Company stock at $16 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $18, and Chance $7. During 2021, the following transactions took place. 5. On February 1, Marin, Inc. sold the remaining Chance shares for $7 per share. 6. On March 1, Rogers Company paid a $2 per share…QUESTION 45 The Investment portfolio of XYZ Ltd. as on 31.03.2020 consisted of the following: (Rs. in lacs) Current Investments Cost Fair Value as on 31.03.2020 (1) 1000 Equity Shares of A Ltd. 7 (2) 500 Equity Shares of B Ltd. 10 15 (3) 1000 Equity Shares of C Ltd. 15 12 Total 30 34 Give your comments on the following: (i) The company wants to value the above portfolio at Rs. 30 lakhs being lower of cost or fair market value. (ii) Company wants to transfer 1000 Equity Shares of C Ltd. from current investments to long term investments on 31.03.2020 at cost of Rs. 15 lakhs.