Assume the free cash flow to common equity for Microsoft is for
the terminal year. Also...
Assume the free cash flow to common equity for Microsoft is for
the terminal year. Also assume that Microsoft will grow at a
constant rate of 3 percent and that Microsoft’s cost of equity is 8
percent. Compute Microsoft’s terminal value using the information
below.
Microsoft Corporation
2011
2010
2009
Net income…………………..
$23,958
$18,846
-
Stockholders’ equity………..
57,083
46,175
$39,558
Dividends…………………....
5,394
4,547
-
Net common stock issued….
(7,656)
(7,682)
-
4. Onyx Corporation had the following balances in its
stockholders' equity accounts at December 31, 2014:...
4. Onyx Corporation had the following balances in its
stockholders' equity accounts at December 31, 2014:
(25 Points)
Common Stock, $25 par, 100,000 shares authorized, 10,000 shares
issued
$250,000
Contributed Capital in Excess of Par Value, Common
125,000
Retained Earnings
450,000
Treasury Stock, 2,000 shares
(60,000)
Total stockholders’ equity
$765,000
The following transactions occurred during 2015:
April 30
Sold and issued 5,000 shares of common stock for $32 per
share.
June 11
Declared a $1.50 per share dividend on...
This financial information is available for Ivanhoe Corporation.
2020 2019 Average common stockholders’ equity $1,850,000 $2,010,000...
This financial information is available for Ivanhoe Corporation.
2020 2019 Average common stockholders’ equity $1,850,000 $2,010,000
Dividends paid to common stockholders 86,000 71,500 Dividends paid
to preferred stockholders 24,500 24,500 Net income 292,000 242,000
Market price of common stock 18 26 The weighted-average number of
shares of common stock outstanding was 182,500 for 2019 and 152,500
for 2020.
Calculate earnings per share and return on common stockholders’
equity for 2020 and 2019. (Round answers to 2 decimal places, e.g.
10.50%...
3. Jet Corporation had the following balances in its
stockholders' equity accounts at December 31, 2019:...
3. Jet Corporation had the following balances in its
stockholders' equity accounts at December 31, 2019: Common Stock $5
par, 900,000 shares authorized, 80,000 shares issued, 75,000 shares
outstanding $400,000 Paid-in Capital in Excess of Par, Common Stock
1,600,000 Retained Earnings 900,000 Treasury Stock, 5,000 shares
(125,000) Total stockholders’ equity $2,775,000 The following
transactions occurred during 2020: January 2 Issued 20,000 shares
of common stock for $20 per share. May 10 Declared dividends at
$0.75 per share. June 10 paid...
Common Stockholders' Profitability Analysis
A company reports the following:
Net income
$120,000
Preferred dividends
4,800
Average...
Common Stockholders' Profitability Analysis
A company reports the following:
Net income
$120,000
Preferred dividends
4,800
Average stockholders' equity
975,610
Average common stockholders' equity
587,755
Determine (a) the the return on stockholders’ equity and (b) the
return on common stockholders’ equity. If required, round your
percentages to one decimal place.
a. The rate earned on stockholders'
equity
%
b. The rate earned on common stockholders'
equity
%
Earnings per Share and Price-Earnings Ratio
A company reports the following:
Net income
$404,500...
Acem Corp has the following balance sheets and income
statement:
2009
2010
ASSETS
Cash
$57,600.00
$7,282.00...
Acem Corp has the following balance sheets and income
statement:
2009
2010
ASSETS
Cash
$57,600.00
$7,282.00
Acct's rec.
$351,200.00
$632,160.00
Inventory
$715,200.00
$1,287,360.00
Total current assets
$1,124,000.00
$1,926,802.00
Gross Fixed Assets
$491,000.00
$1,202,950.00
Less Accumulated Depreciation
$146,200.00
$263,160.00
Net Fixed Assets
$344,800.00
$939,790.00
TOTAL Assets
$1,468,800.00
$2,866,592.00
LIABILITIES AND EQUITY
Acct's Payable
$145,600.00
$524,160.00
Notes Payable
$200,000.00
$636,808.00
Accruals
$136,000.00
$489,600.00
Total current liabilites
$481,600.00
$1,650,568.00
Long-term debt
$323,432.00
$723,432.00
Common Stock (100,000 Shares)
$460,000.00
$460,000.00
Retained Earnings
$203,768.00
$32,592.00...
Cash Dividends
The Stockholders' Equity section of Jackson Company's balance
sheet as of January 1, 2017,...
Cash Dividends
The Stockholders' Equity section of Jackson Company's balance
sheet as of January 1, 2017, appeared as follows:
Preferred stock, $100 par, 8%, 2,000 shares issued and
outstanding
$200,000
Common stock, $10 par, 5,000 shares issued and outstanding
50,000
Additional paid-in capital
300,000
Total contributed capital
$550,000
Retained earnings
400,000
Total stockholders’ equity
$950,000
The notes that accompany the financial statements indicate that
Jackson has not paid dividends for the two years prior to 2017. On
July 1, 2017,...
Statement of Stockholders' Equity
The stockholders’ equity T accounts of I-Cards Inc. for the
fiscal year...
Statement of Stockholders' Equity
The stockholders’ equity T accounts of I-Cards Inc. for the
fiscal year ended December 31, 20Y9, are as follows.
COMMON STOCK
Jan. 1
Balance
1,800,000
Apr. 14
Issued
16,200 shares
810,000
Dec. 31
Balance
2,610,000
PAID-IN CAPITAL IN EXCESS OF PAR
Jan. 1
Balance
288,000
Apr. 14
Issued
16,200 shares
194,400
Dec. 31
Balance
482,400
TREASURY STOCK
Aug. 7
Purchased
2,700 shares
129,600
RETAINED EARNINGS
Mar. 31
Dividend
46,000
Jan. 1
Balance
3,130,000
June. 30
Dividend...
Dividends on preferred stock. The stockholders' equity section
of Lemay Corporation shows the following on December...
Dividends on preferred stock. The stockholders' equity section
of Lemay Corporation shows the following on December 31, 2015:
Preferred stock—5%, $100 par, 5,000 shares outstanding $
500,000
Common stock—$10 par, 60,000 shares outstanding 600,000
Paid-in capital in excess of par 200,000
Retained earnings 113,000
Total stockholders' equity $1,413,000
Instructions Assuming that all of the company's retained
earnings are to be paid out in dividends on 12/31/15 and that
preferred dividends were last paid on 12/31/13.
1. Show how much the...
A portion of the stockholders’ equity section from the balance
sheet of Walland Corporation appears as...
A portion of the stockholders’ equity section from the balance
sheet of Walland Corporation appears as follows.
Stockholders' equity:
Preferred stock, 9% cumulative, $50 par, 35,000 shares authorized,
issued, and
outstanding
$
1,750,000
Preferred stock, 12% noncumulative, $100 par, 5,300 shares
authorized, issued, and
outstanding
530,000
Common stock, $5 par, 460,000 shares authorized, issued, and
outstanding
2,300,000
Total paid-in capital
$
4,580,000
Assume that all the stock was issued on January 1, Year 1 and that
no dividends were paid...