How do I quit my job as cashier already wrote resignation letter

Morgan Sondgeroth Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations

stepan [7]

Answer:

Part A) Book Value = $1,080,000

Part B) Book Value = $1,050,000

Explanation:

Part 1: To compute the book value of the common stock at December 31, 2020

To do this, we consider both the preferred and common stock values as follows:

Stockholder's equity:

Preferred Stock = $500,000

Common stock = $750,000

Retained earnings: To calculate retained earnings we need to deduct dividends in arrears to prefered stock holders and then ascribe the remaining value to retained earnings.

Dividend in Arrears= 3 years @ 8% interest per year

= 500,000 x 0.08 x 3= $120,000

Remaining earnings for available to common share holders

= Retained earnings balance- dividend paid to prferred stock holders.

=$800,000 (net income for 2020)- $40,000 (net loss for 2019) - $260,000 (net loss for 2018)

= $800,000-$40,000-$260,000

= $500,000 - Dividend in arrears

= $500,000- $120,000

= $380,000

Book Value of Stockholders' equity

Common Stock equity + Balance of retained earnings

= $700,000 + $380,000

= $1,080,000

The book value per share = $1,080,000/ outstanding shares

= $1,080,000/750,000= $1.44

Part 2: To compute the book value of the common stock at December 31, 2020 Preference stock has liquidating value of $106 per share

Stockholder's equity:

Preferred Stock = $500,000

Preferred stock liquidating premium = (106-100) x 5000

= $6 x 5000= $30,000

Common stock = $750,000

Retained earnings: To calculate retained earnings we need to deduct dividends in arrears to prefered stock holders and then ascribe the remaining value to retained earnings.

Dividend in Arrears= 3 years @ 8% interest per year

= 500,000 x 0.08 x 3= $120,000

Remaining earnings for available to common share holders

= Retained earnings balance- net losses from previous years - dividend paid to prferred stock holders - liquadating premium to preferred stock

=$800,000 (net income for 2020)- $40,000 (net loss for 2019) - $260,000 (net loss for 2018)

= $800,000-$40,000-$260,000

= $500,000 - Dividend in arrears - liquidating

= $500,000- $120,000- $30,000

= $350,000

Book Value of Stockholders' equity

Common Stock equity + Balance of retained earnings

= $700,000 + $350,000

= $1,050,000

The book value per share = $1,080,000/ outstanding shares

= $1,050,000/750,000= $1.4

6 0

3 years ago

Hi-Tek is a young start-up company. No dividends will be paid on the stock over the next 9 years, because the firm needs to plow

Elza [17]

Answer:

The price of the stock today is $16.83

Explanation:

The current price per share can be estimated using constant growth model of the DDM. The price per share can be calculated using the following formula,

P0 = D1 / r - g

To calculate the price today, we use the dividend expected for the next period. Thus, using the dividend that will be paid at t=11 or D11, we can calculate the price of the stock at t=10. We further need to discount this price using the required rate of return for 10 years to calculate the price of the stock today.

P10 = 6 * (1+0.04) / (0.14 - 0.04)

P10 = $62.4

The price of the stock today will be,

P0 = 62.4 / (1.14)^10

P0 = $16.83

8 0

3 years ago

Read 2 more answers

. George worked 52 hours last week. In his job, any hour past 40 hours is considered overtime. His overtime pay is 1.5 times his

stiks02 [169]

Find how much time he worked overtime.
52-40=12
Find his overtime salary.
22.5*1.5=33.75
Calculate how much money he makes for 40 hours.
40*22.5=900
Calculate how much money he made in overtime.
33.75*12=405
Add both earnings together.
900+405=1305

George earned 1305$ last week.

3 0

3 years ago

if your yearly pension was $46,875.00, what is your monthly pension? choose the best answer from the options below: a $3706.25 b

emmasim [6.3K]

The correct answer is B

5 0

3 years ago

It is estimated that the maintenance cost on a new car will be $500 the first year. Each subsequent year, this cost is expected

Vsevolod [243]

Answer:

$-8,609

Explanation:

Calculation for How much would you need to set aside

Year Cashflows PVF 5% Present values

1 -500 *0.952381 =-476.19

2 -650(500+150) *0.907029 =-589.569

3 -800(650+150) *0.863838 =-691.07

4 -950(800+150) *0.822702 =-781.567

5 -1100(950+150) *0.783526 =-861.879

6 -1250(1100+150) *0.746215 =-932.769

7 -1400(1250+150) *0.710681 =-994.954

8 -1550(1400+150) *0.676839 =-1049.1

9 -1700(1550+150) *0.644609 =-1095.84

10 -1850(1700+150) *0.613913 =-1135.74

PV=Present value $-8,609

Therefore the amount you will need to set aside is $-8,609

7 0

3 years ago