New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $5.40 per share exactly 5 year
1 answer:
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Answer: See explanation
Explanation:
1. Prepare a single-step income statement for 2017. Shares outstanding during 2017 were 100,000. (Round earnings per share to 2 decimal places, e.g. $1.48.)
The income from continuing operations for earnings per share was calculated as:
= 285000/100000
= $2.85
The loss on discontinued operations was calculated as:
= 35190/100000 shares
= 0.35
Check the attachment for the solution.
2. Prepare aretained earning statement for 2017. Shares outstanding for 2017 were 100000.
Check the attachment for the solution
Answer:
a: current value of the bond $405.11
b: Robison loss: 59.49%
c Pinson gain: 146.85%
As the investment is smaller the percentage change at maturity is greater than the difference in percentage of the par value.
A percent of the original investmentrepresent 10 dollars while !% of Mrs Pinson represent 4.05 dollars
Explanation:
The present value of the bonds is the sum of the present value of the coupon payment and the maturity discounted at market rate:
C: 1,000 x 8% / 2 = 40.00
time: 25 years x 2 payment per year = 50
market rate 0.10
PV $396.5926
Maturity 1,000.00
time 50.00
rate 0.1
PV 8.52
PV c $396.5926
PV m $8.5186
<em>Total $405.1111 </em>
Robinson capital loss:
405.1111/ 1,000 -1 = <em>-59.49%</em>
If purchased today and held to maturity by Mrs Pinson:
1,000 / 405.1111 - 1 = 146.85%