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2 years ago

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A company has 525 shares of $61 par value preferred stock outstanding. It also has 21,000 shares of common stock outstanding, an

d the total value of its stockholders' equity is $716,625. The company's book value per common share equals:

1 answer:

pantera1 [17]2 years ago

7 0

Answer:

$32.6

Explanation:

Please see attachment

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Cash flows from investing activities LO P3 Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a

bekas [8.4K]

Answer:

$221,100

Explanation:

Given that,

Book value of equipment = $65,300

Sold at a loss = $14,000

Purchase of a new truck = $89,000

Sale of land = $198,000

Sale of Long term investment = $60,800

Cash flows from investing activities:

= Sale of Equipment - Purchase of a new truck + Sale of land + Sale of Long term investment

= ($65,300 - $14,000) - $89,000 + $198,000 + $60,800

= $51,300 - $89,000 + $198,000 + $60,800

= $221,100

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3 years ago

Terry company had january 1 inventory of $100,000 when it adopted dollar-value lifo. during the year, purchases were $600,000 an

inna [77]

Answer:

Terry's Closing Inventory is $131,360.

Terry's Gross profit is $431,360.

We follow these steps to arrive at the answers:

<u>1. Calculate the base value of closing inventory (CI):</u>

$CI_{base value} = \frac{CI*Index at base year}{current price index}$

$CI_{base value} = \frac{143360*100}{112} = 128,000$

<u>2. Calculate additions to inventory at base price</u>

$Additions to inventory = CI_{base value} - Beginning inventory$

$Additions to inventory = 128000 - 100000 = 28,000$

<u>3. Calculate the value of additions to inventory at current prices</u>

$Additions to inventory_{current Value} = Additions to inventory_{base Value} * \frac{current price index}{base price index}$

$Additions to inventory_{current Value} = 28,000 * \frac{112}{100} = 31,360$

<u>4. Calculate the value of Closing inventory</u>

$Closing inventory = Beginning Inventory + Additions to inventory_{current Value}$

$Closing inventory = 100,000 + 31,360 = 131,360$

<u>5. Compute Cost of Goods Sold (COGS):</u>

$COGS = Opening Inventory + Purchases - Closing Inventory$

$COGS = (100000 + 600000 - 131360) = 568640$

<u>6. Compute Gross profit</u>

$Gross profit = Sales - COGS$

$Gross profit = 1000000 - 568640 = 431360$

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3 years ago

Sheffield Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution.

vlabodo [156]

Answer:

SHEFFIELD LABORATORY

PATENT (NO. 78-6002-1A)

Carrying value as at Dec 31

2011 2015 2018

Cost $182,300 $349,000 $385,000

Amortization <u> (10,724) </u> <u>(79,433) </u> <u>(142,403)</u>

<u> 171,576 </u> <u> 269,567 </u> <u>242,597</u>

Cost

As at 31 Dec 2011

Design and construction of a prototype $89,000

Testing of models 40,600

Fees paid engineers and lawyers to prepare application <u> 52,700</u>

<u>$182,300</u>

As at 31 Dec 2012

Cost as at Jan 1, 2012 $182,300

Additional cost during the year:

Engineering activity necessary to advance. <u> $84,500 </u>

<u>$266,800</u>

As at 31 Dec 2013

Cost as at Jan 1, 2013 $266,800

Additional cost during the year:

legal fee paid <u>$40600 </u>

<u> $307,400</u>

As at 31 Dec 2014

Cost as at Jan 1, 2013 $307,400

Additional cost during the year:

Research aimed at modifying the design <u>$41,600 </u>

<u> $349,000</u>

As at 31 Dec 2018

Cost as at Jan 1, 2018 $349,000

Additional cost during the year:

legal fee paid in unseccesful patent infrigement. <u> $36,000 </u>

<u>$385,000</u>

Amortization for the year

Dec 31 2011 $182,300/17 = $10,724

Dec 31 2012

182,300/17 10,724

84,500/0 <u> - </u>

<u> 10,724</u>

<u />

Dec 31 , 2013 :

$182,300/17 = $10,724

84,500/16 = 5,281

40,600/0 = <u> - </u>

<u> 16,005</u>

Dec 31 2014 =

$182,300/17 = $10,724

84,500/16 = 5,281

40,600/16 = 2,538

41,600/17 = <u> 2,447</u>

<u> 20,990</u>

Dec 31 2018 =

$182,300/17 = $10,724

84,500/16 = 5,281

40,600/16 = 2,538

41,600/17 = 2,447

36,000/0 = <u> -</u>

<u> 20,990</u>

Explanation:

5 0

3 years ago

In a CPMT, the ____ leads the project to make sure a sound project planning process is used, a complete and useful project plan

KatRina [158]

Answer:

managers or skateholders

Explanation:

bc that is the answer

5 0

2 years ago

The total market value of the equity of ITM is $6 million, and the total value of its debt is $4

timofeeve [1]

Answer:

a. The required rate of return on Okefenokee stock is 16%.

b. WACC = 10.56%.

c. Estimate the discount rate for an expansion of the company's present business.

It should be the same as the WACC = 10.56%

d. The required rate of return on Okefenokee's new venture is Ke = 18 %.

Explanation:

Here the given is,

E = $6 million, D = $4 million, Beta = 1.2,

Rmp = the expected risk premium on the market =10%.

Rf = The Treasury bill rate = 4%

a. The required rate of return on Okefenokee stock,

$Ke = Rf + Beta \times Rmp = 4 + 1.2 \times 10 = 16%$ %.

b. Tax rate, T = 40%

The proportion of debt = $Wd = D / (D + E) = 4 / (6 + 4) = 0.4$

Proportion of equity, We = 1 - Wd = 1 - 0.4 = 0.6

Cost of debt, Kd = Risk-free rate as debt is free of default = 4%

$WACC = Wd \times Kd \times (1 - T) + We\times Ke\\\\ = 0.4 \times4\times (1 - 40) + 0.6 \times 16\\\\ = 10.56%$

WACC = 10.56%.

c. Estimate the discount rate for an expansion of the company's present business.

It should be the same as the WACC = 10.56%

d. Suppose the company wants to diversify into the manufacture of rose-colored glasses. The beta of optical manufacturers with no debt outstanding is 1.4. What is the required rate of return on Okefenokee's new venture? (You should assume that the risky project will not enable the firm to issue an additional debt)

$Ke = Rf + Beta \times Rmp\\\\Ke = 4 + 1.4 \times 10 = 18%$

Ke = 18 %.

5 0

3 years ago