Answer: Williamson Journal $
Date. Description. Dr. Cr
Cash Dr. 2,500,000
Issued share Cr. 100,000
Share premium Cr 2,400,000
Narration. Sales of 50,000 share of $2 nominal value at $52.
Share premium Dr 100,000
Issued share Dr Dr 4000
Cash. Cr. 104,000
Narration . Repurchase of issued share of $2 nominal value at $52.
Balance Sheet. ,$
Authorised Share
80,000 ordinary share
at $2 each 160,000
Issued share capital
48,000 ordinary share at
$2 each. 96,000
Share premium. 2,300,000
Explanation:
The share stated in the charter is authorised share capital which is the maximum a company can issue out, though it's allowed to issue out less than the authorised share capital, whatever amount it issued out it's called issued share capital.
A share is said to be issued at a premium when the issued value as for this example $50 is greater than the nominal value of $2 or at a discount if the issued price is less than the nominal or authorised value.
A firm can equally repurchase it's shares at an equal, higher or lower value to the share authorised value and this gives no effect, higher and lower effect respectively to the share premium balance.
Answer:
Using the DDM method we can find the fair value of the stock. For that we need the current years dividend, the company's growth rate and the required rate of return on the stock.
The formula for DDM is
Value = D*(1+G)/R-G
D= 1.32
G= 9.5%
R=13%
1.32*(1+0.095)/(0.13-0.095)= 41.29
The fair present value of the company based on the dividend discount model is $41.29.
Explanation:
<span>The difference between a high-grade ore and a low-grade ore is the amount of a particular mineral with the the ore. Higher grade ores contain larger amounts of the mineral than lower grades do. Ores can contain different types of minerals such as copper or iron; but the higher the amount of mineral, the higher-grade the ore is labeled.</span>
Taxable income is the sum of income used to compute a person's
or a business's income tax due. Taxable
income comprises salaries, pays, bonuses and tips, on top of investment revenue
and unearned revenue. In this case, the corporation have $25 million that came
from US Sources then the additional $10 million is also part of the taxable
income because it is part of the normal course of the business. Therefore,
GreenCo must report $35 million.
Answer:
IRR 6% for Jabob
His friend will need 12 years saving cash to obtain their collegue funds.
Explanation:
We will solve for the rate being the annuity of 3 payment of 800
and the present value 2,138.41
C 800
time 3
PV 2,138.41
rate ?
To solve we can use excel, a financial calculator or trial and error
For excel we will do the following:
write the list of cash through the loan life:
-2,138.41
+800
+800
+800
then we write in the empy cell
=IRR(
select the values and press enter
This will give the IRR which is 6%
For the second assignment:
we need to solve for time:
C 3,800
time n
rate 0.06
PV $31,897
We work out the formula:
Now we solve the right side and apply logarithmic properties
-n = -11.77128325
n = 11.77
It will take 12 years to obtain their target amount