Based on the fact that the company is already public, the type of offering being done is a. I only - this is a combination offering.
<h3>What type of offering is this? </h3><h3 />
The fact that the company is already public means that this is not a primary offering or an initial primary offering as these are done when the company wants to go public for the first time.
This is a secondary offering because the company wants to put more shares into the market which is the definition of a secondary offering as this happens when a company is already public.
It is also an additional public offering which would allow the company to pay of existing stockholders who would like to divest.
In conclusion, this is a combination offering.
Find out more on secondary offerings at brainly.com/question/9627261.
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Answer:
$3.33 per share
Explanation:
Given that,
Common stock, $1 par = $1,040,000
Stock dividend = 25% on its common stock
Net income = $4,400,000
Dividend paid to stockholder's = $65,000
Stock dividend:
= Shares at January 1 × 25%
= 1,040,000 × 25%
= 260,000 shares
Earnings per share:
= (Net income - Preferred dividend) ÷ (Shares at January 1 + Stock dividend)
= ($4,400,000 - $65,000) ÷ (1,040,000 shares + 260,000 shares)
= $4,335,000 ÷ 1,300,000
= $3.33 per share
Answer:
1. A firm's sustainable growth rate represents the:
highest growth rate without increasing financial leverage.
2. The sustainable growth rate of a firm with net income of $2.90 million, cash dividends of $1.90 million, and return on equity of 16% is:
= c. 5.52%
Explanation:
a) Data and Calculations:
Sustainable growth rate = Return on equity * Retention rate
Net income = $2.90 million
Cash dividends 1.90 million
Retained earnings = $1.0 million
Retention rate = $1.0/$2.90 * 100 = 34.48%
Return on equity = 16%
Therefore, the sustainable growth rate = 16% * 34.48%
= 5.5168%
= 5.52%
b) Sustainable growth rate is the rate of revenue growth, which an entity can attain without increasing its financial leverage (debts). The sustainable growth rate answers the question of how much a company can grow without additional equity or debt financing. It is a ratio that investment analysts and investors widely seek. There are four main ways of increasing an entity's sustainable growth rate, including sale of debt, issue of equity, increased profitability through efficient sales revenue, and reduced dividends payout to increase retained earnings.
Answer:
$8,588
Explanation:
income tax brackets 2019
tax rate income
10% $0 to $19,400
12% $19,401 to $78,950
total ordinary income = $64,200 + $33,500 + $1,500 = $99,200
taxable ordinary income = $99,200 - $24,400 = $74,800
tax liability = ($19,400 x 10%) + ($55,400 x 12%) = $1,940 + $6,648 = $8,588
long term capital gains = $13,200 - $10,100 = $3,100
since their total taxable income is below $78,750, their long term capital gains tax rate is 0.
total tax liability = $8,588
Answer:
Monthly deposit= $1,036.116
Explanation:
Giving the following information:
Future Value (FV)= $900,000
Number of periods= 28*12= 336 months
Interest rate (i)= 6% = 0.06/12= 0.005
<u>To calculate the monthly deposit, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= {900,000*0.005) / [(1.005^336) - 1]
A= $1,036.116
