All categories

3 years ago

Stock repurchase The following financial data on the Bond Recording Company are

Business

1 answer:

Vilka [71]3 years ago

4 0

Answer:

a. 19,048

b. 2.1

c. $21

d. Before $2

After $2.1

e. Explanation of tax implication is below

Explanation:

a. Number of shares = Dividend per share × Number of shares outstanding ÷ cost per share

= 1 × 400,000 ÷ $21

= 19,048

b. Earning per share after repurchase = earnings ÷ (shares before-shares outstanding)

= $800,000 ÷ (400,000-19,048)

= 2.1

c. Market Price = Earning per share Price × Earning

= 2.1 × 10

= $21

d. Earning per share before = Earnings ÷ Before shares

= $800,000 ÷ 400,000

= $2

Earning per share after repurchase = $2.1

After share repurchase the earning per share has increased.

e) Price increased 21 dollars in share repurchased. The price remain constant in dividend payout the amount but additional 1 dollar in dividend the investors gains. If dividend is lesser than tax on capital gain then it will become drawback over collect dividend and vice versa.

You might be interested in

Bunk stores has requested a quote for a special order of bubbs. this order would not be subject to any corporate allocation (and

Nezavi [6.7K]

The minimum price that this order could be offered is at cost. Since there are no cost figures in this question, this is the best answer I can give.

You would need to at least sell the item for the amount of money it cost you to make, assemble, and ship the product.

7 0

4 years ago

Regal Financial Institution specializes in home loans. What type of financial institution is it? savings and loan bank credit un

Serga [27]

Regal Financial institution is a Savings and loan bank. Conventionally,S$L must have a Mortgage dominant of over 65%.

S&L are typically suitable for home loans than commercial banks because they have lower borrowing rates. their emergence was neccessitated by the exclusivity of commercial banks.

3 0

4 years ago

Read 2 more answers

Cola Inc. Soda Co. Fiscal Year Ended: 2015 2014 2013 2015 2014 2013 Net Sales $ 39,819 $ 35,690 $ 36,444 $ 62,438 $ 47,932 $ 47,

Colt1911 [192]

Answer:

2015 Cola Inc:

A/R TO 9.51

Days to collect 38.00

2014 Cola Inc:

Inventory TO 10.18

Days to collect 36

2015 Soda Co:

A/R TO 11.25

Days to collect 32

2014 Soda Co

A/RTurnover 11.28

Days to collect 32

Explanation:

2015

$\frac{COGS}{Average Inventory} = $Inventory Turnover$

where:

$$$Average Account Receivable =(Beginning A/R + Ending A/R)/2$

Sales 39,819

ending 4,531

beginnin 3,839

$$$Average A/R=4531 + 3839)/2$

Avg A/R 4185

$\frac{39,819}{4185} = $A/RTurnover$

A/R TO 9.514695341

$\frac{365}{A/R TO} = $Days to collect$

$\frac{365}{9.51469534050179} = $Days to collect$

Days on Inventory 38

2014:

$\frac{35690}{3505} = $A/RTurnover$

Inventory TO 10.18259629

$\frac{365}{10.1825962910128} = $Days to collect$

Days to collect 36

Soda Co:

2015

$\frac{62483}{5554.5} = $A/RTurnover$

A/R TO 11.24907732

$\frac{365}{11.2490773246917} = $Days to collect$

Days to collect 32

2014

$\frac{47932}{4250} = $A/RTurnover$

A/RTurnover 11.27811765

$\frac{365}{Inventory TO} = $Days on Inventory$

$\frac{365}{11.2781176470588} = $Days to collect$

Days to collect 32

6 0

3 years ago

Frito-Lay has developed a new line of snack foods. The company wants to place the products in as many outlets as possible; groce

Katen [24]

Answer: Intensive distribution

Explanation:

Here, in this particular case Frito-Lay is trying to accomplish the Intensive Distribution. Intensive distribution is referred to as the marketing strategy under which an organization tends to sell their respective commodity through their several outlets or store as, in order to have the individuals and their respective customers confront the commodity virtually almost everywhere.

3 0

3 years ago

Jay sold three items of business equipment for a total of $300,000. None of the equipment was appraised to determine its value.

olasank [31]

Answer:

Consider the following calculations

Explanation:

Step 1. Given information.

Asset Cost Adjusted Basis

--------------------------------------------------

Skidder 230,000 40,000

Driller 120,000 60,000

Platform 620,000 0

-------------------------------------------------

Total 970,000 100,000

Step 2. Formulas needed to solve the exercise.

Allocation for each asset = value sold * (adjusted basis / total)

Gain on sale = Sales price - Adjusted basis amount

Step 3. Calculation and Step 4. Solution.

Sales price is allocated on the basis of adjusted value.

Skidder = 300.000 * 40.000/100.000 = 120.000

Driller = 300.000*60.000/100.000 = 180.000

Platform = 300.000*0/100.000 = 0

Gain on sale = Sales price - Adjusted basis amount

= 300.000 - (40.000 + 60.000 + 0)

= 200.000

6 0

4 years ago