Common stock, $0.25 par $400,000 Paid-in capital in excess of par $4,500,000 Retained earnings $1,100,000 a. How many shares has the company issued? 400,00/.025=1.6 MILLION SHARES b. What is the book value per share? (400,000+4,500,000+1,100,000)/1.6 MILLION SHARES = $3.75 PER SHARE c. Suppose that Hilton Web-Cams has made only one offering of common stock. At
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Owner’s equity paper Taisha Ransom ACC/423 August 29, 2011 Henry Leonard Before investors invest in a company, he or she must take various items into consideration. First, both paid in capital and earned capital are looked at. These items tell investors how well the company is doing and if the company is profitable. Next, investors look at earnings, basic and diluted. Once an investor takes the above into consideration, he or she can then make the decision whether to invest in a company or
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LECTURE 7 APPENDIX: A step-by-step estimation of the WACC (Read this before attempting the case study) The balance sheet of a firm reveals the following liabilities and equity: Bank overdraft Accounts payable Provisions Bank mortgage loan Bonds Deferred tax liabilities Preference shares Shareholders equity Share capital Reserves Retained earnings $('000) 1000 4266 2934 5000 3000 3600 4000 2000 5000 18000 $50000 Additional information: a) The current interest rate on bank overdraft is 9%. b) The
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separate from mangers and owners. Advantages * unlimited life—a corporation can continue after its original owners and managers are deceased; * easy transferability of ownership interest—ownership interests are divided into shares of stock, which can be transferred far more easily than can proprietorship or partnership interests; and * limited liability—losses are limited to the actual funds invested.
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| | | | 2. | Question : | (TCO F) Chocolate Factory's convertible debentures were issued at their $1,000 par value in 2009. At any time prior to maturity on February 1, 2029, a debenture holder can exchange a bond for 25 shares of common stock. What is the conversion price, Pc? (a) $40.00 (b) $42.00 (c) $44.10 (d) $46.31 (e) $48.62 | | | | Instructor Explanation: | Answer is: a Chapter 19: pp. 770-774 Par value: $1,000.00 Conversion ratio: 25.00 Conversion price =
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Introduction - Director’s duties Even though the law recognizes corporations as separate and distinct entities from the owners, it nevertheless recognizes that corporations act through people. Such people are referred to as directors and manage the activities of a corporation. In Lennard’s Carrying Co. v. Asiatic Petroleum Co. Ltd, the court observed that directors are the directing mind and will of the company. Accordingly, directors of a company act for and behalf of the company, and as such owe
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1. | Question : | (TCO D) Which of the following statements concerning common stock and the investment banking process is NOT CORRECT? (a) The preemptive right gives each existing common stockholder the right to purchase his or her proportionate share of a new stock issue. (b) If a firm sells 1,000,000 new shares of Class B stock, the transaction occurs in the primary market. (c) Listing a large firm's stock is often considered to be beneficial to stockholders because the increases in liquidity
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(oatmeal, water, apple juice, milk, jelly, etc.), empty trash, wipe down coffee brewer, shake machine, flurry machine and creamer dispenser, sweep and mop. Presenter- Stock all condiments, cups, lids and bags. Make sure ice bin is full and frappe machine also has ice. Wipe down abs, sweep, mop and empty trash. HD1 and HD2- Stock all spoons, water, milk, juice, mccafe cups and lids. Make sure there is an ample amount of cream cheese, whip cream and orange juice. Wipe down mccafe machine, creamer
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DO SHAREHOLDERS CONTROLS MANAGERIAL BEHAVIOR? Yes, shareholders control managerial behavior of a company. Shareholders are an owner of shares who has invested in the company. Shareholders select the Board of Director by voting and thus they control the directors who in turn hire the management team of a company. Board of Directors is responsible for the operation of the business starting from recruiting or setting up the managerial body for the organization. The managerial goal may be different
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Case Study 3.1 Teva Acquires Cephalon in a Hostile Takeover in the European Market for Corporate Control 1. While Valeant was more likely to be an aggressive cost cutter, both firms anticipated improving earnings performance through significant cost savings by combining operations and eliminating duplicate overhead. Valeant also believed Cephalon would complement their own offering. Teva was under pressure to diversify its product offering to include a greater percentage of higher margin branded
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