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spayn [35]
3 years ago
13

Acme Widget, Inc. has 1,000 shareholders who own a total of one million shares of its common stock. The company earned $10 milli

on after taxes and paid out $4 million in dividends. The firm has assets of $125 million and liabilities of $25 million. What is the book value per share
Business
1 answer:
Dafna1 [17]3 years ago
8 0

Answer:

$94 per share

Explanation:

Stockholders Equity Includes the Add-in-capital par value, Add-in-capital excess value of Common and Preferred, Net income accumulated value and dividends.

Equity of the firm = Assets - Liabilities

Equity of the firm  = $125 million - $25 million = $100 million

Net Addition in the equity = Net earning for the period - Dividend paid

Net Addition in the equity = $10 million - $4 million - $6 million

Book Value of the equity = Equity of the firm - Additions in the year

Book Value of the equity = $100 - $6 = $94 million

Book value per share = Book Value of the equity / Numbers of Share

Book value per share = $94 million / 1 million

Book value per share = $94 per share

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faust18 [17]

Calculation

Period   Cash Interest   Bond Interest    Discount     Carrying  

 End          paid            Expense         Amortization     Value

 01-Jan-21                                                            $375,505,452            

30-Jun-21 $25,200,000 $26,285,38 $1,085,382 $376,590,834

1-Dec-21 $25,200,000   $26,361,358  $1,161,358  $377,752,192

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3 0
3 years ago
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How does increasing the size of your down payment impact your auto loan?
Gnom [1K]

Answer:

The correct answer is letter "C": It decreases the size of your principal and decreases the total cost of the loan .

Explanation:

Down payments are the initial sums debtors pay when requesting a credit. Down payments are usually mandatory but the debtor can offer the sum voluntarily.

<em />

<em>If the sum provided in the down payment is higher than what is requested, the amount of the principal will be lower. If the amount of the principal is lower, the total of the interest paid in the course to the loan will be lower as well, thus, the cost of the loan will be reduced.</em>

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Answer:

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Explanation:

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