2, 3, 7, 8, & 14 ICE FIN380 SOLVED

2. Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $650,000. Earnings per share of common stock per share per share per share Plan 1 Plan 2 Plan 3 +A +A +A

Alternative Financing Plans Vatican Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) $6,000,000 $3,750,000 Issue preferred $2.50 stock, $25 par 4,500,000 Issue common stock, $20 par 6,000,000 3,750,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $3,000,000. Enter answers in dollars and cents, rounding to the nearest whole cent. Plan 1 $ X Earnings per share on common stock Plan 2 X Earnings per share on common stock

The following investment account was taken from the general ledger of One Dream Investment Company:   Debt Investments - Fulfilled Dream 6% bonds (2,000,000 face value, due December 31, 2027)  Date  PR  Debit  Credit  Balance January2, 2022 VR VR P1,812,300    P1,812,300 June 30, 2022 CRJ    60,000  1,752,300 Dec.  31,  2022 CRJ    60,000  1,692,300 Dec.  31, 2022     195,000  1,497,300   In the course of your examination, you obtained the following information:  Interest checks were received on June 30 and December 31 and were credited to the investment account.  One dream sold P200,000 of its investment on December 31, 2022 for P195,000. Effective interest rate on this investment, as computed by your audit staff, is 8%. (4% - semi annual) One Dream included this investment in a portfolio that is held to collect and for sale.  The fair value at December 31, 2022 and 2023 is 97.5 and 105, respectively.    How much is the gain or…

Question Content Area Jenson Co. is considering the following alternative plans for financing the company:   Plan 1 Plan 2 Issue 10% bonds (at face) — $2,000,000 Issue $10 common stock $3,000,000   1,000,000   Income tax is estimated at 40% of income. Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and income tax is $1,000,000. Round your answers to two decimal places.   Earnings per Shareon Common Stock Plan 1 $fill in the blank 1 Plan 2 $fill in the blank 2

S 105-Principles of Financial Manağeme Managemenl-3-2020, rd / My courses/ BUSS 105-3-20202/ General / Test-3, BUSS-105 Sec-3 ;May 4th 2021 Majan Mining has found that its cost of common equity capital is 15 percent and its cost of debt capital is 12 percent. If the firm is financed with $250,000,000 of common shares (market value) and $750,000,000 of debt, then what is the after-tax weighted average cost of capital for Majan Mining if it is subject to a 35 percent marginal tax rate? an 2 et ered ed out of Flag question Select one: O a. None of these Ob. 10.50 Oc. 9.60 O d. 11.57

Problem 1 about Trading Securities Bank National investment manager invests some of its financial resources in securities trading. During the last quarter of 2018, the following transactions took place in connection with trading securities. Nov. 5. Buy 200 shares of M Company's ordinary shares for $ 86 per share.Nov 19. Buy 300 shares of Company P preferred stock at $ 63 per share.Dec 29 Sold 100 shares of Company M's ordinary shares for $ 89 per share.Dec. 15. Buy 400 shares of T Company common stock for $ 37 per shareDec 17 Company P shares are sold at preference shares at $ 62 per share As of December 31, 2010, the stock market value was as follows:M, $ 87 per share;P, $ 61 per share; andT, $ 37.25 per share.The bank did not have any trading effects at the beginning of the last quarter of 2010. Requested:1. Prepare a journal entry to record the information.2. Show what the bank reported in the 2010 fourth quarter profit and loss statement for these trading securities.3. Show how the…

< Ateitiative financing Plans Desmond Co. is considering the following alternative financing plans: Plan 2 Issue 10% bonds (at face value) Issue preferred $1 stock, $10 par. Issue common stock, $5 par Income tax is estimated at 40% of income. Plan 1 Plan 1 Plan 2 $1,400,000 1,400,000 Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $420,000. Enter answers in dollars and cents, rounding to two decimal places. Earnings per share on common stock Earnings per share on common stock $700,000 1,160,000 940,000

cam Acc III-June 23 1 O:22:27 C Mc Graw Hill Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2023, all with intent to hold to maturity: 2023 1 Purchased for $427,057 a 7.0%, $420,000 Jaguar Corp. bond that matures in five years when the market interest rate was 6.6%. There was a $$125 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning June 30, 2023. Monkey Mortgage Inc. plans to hold this investment until maturity. 1 Bought 8,000 shares of Mule Corp., paying $34.50 per share. There was a $125 transaction fee included in the above-noted payment amount. May 7 Received dividends of $2.90 per share on the Mule Corp. shares. June 1 Paid $336,000 for 22,000 shares of Zebra common shares. There was a $$125 transaction fee included in the above-noted payment. June 30 Received interest on the Jaguar bond.. Jan. Mar. Aug. 1 Sold the Mule Corp. shares for $34.75 per share. Dec. 31 Received interest on the…

Alternative Financing Plans Desmond Co. is considering the following alternative financing plans: Plan 1 Plan 1 $960,000 Issue 10% bonds (at face value) Issue preferred $1 stock, $10 par Issue common stock, $5 par Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $576,000. Enter answers in dollars and cents, rounding to two decimal places. Earnings per share on common stock Earnings per share on common stock Plan 2 Plan 2 960,000 $480,000 800,000 640,000

Alternative Financing Plans Frey Co. is considering the following alternative financing plans: Plan 1 $1,760,000 Issue 10% bonds (at face value) Issue preferred $1 stock, $10 par Issue common stock, $5 par Income tax is estimated at 40% of income. Determine the earnings per share on common stock, assuming that income before bond interest and income tax is $528,000. Enter answers in dollars and cents, rounding to two decimal places. Plan 1 2.4 X Earnings per share on common stock 4.2 X Earnings per share on common stock Plan 2 $ S Plan 2 1,760,000 $880,000 1,460,000 1,180,000

Alternative Financing Plans Desmond Co. is considering the following alternative financing plans:   Plan 1 Plan 2 Issue 5% bonds (at face value) $ 3,000,000 1,000,000 Issue preferred $1 stock, $20 par - 3,000,000 Issue common stock, $10 par 3,000,000 2,000,000 Income tax is estimated at 40% of income.     Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $400,000. Enter answers in dollars and cents, rounding to two decimal places. Plan 1 $      Earnings per share on common stock Plan 2 $      Earnings per share on common stock

I corporate bond offering 10%, muncipal hand offering 7% interest with other conditions remaining the same, which one is a investment 1 is 20% Assume your better. tax bracket 2 what are the limitations of financial statements and financial ratio analyses 2.

PROBLEM 4: MULTIPLE CHOICE- COMIVinTIUNAL Fact pattern for the next six questions: On Jan. 1, 20x1, Golf Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal is due on Jan. 1, 20x4 but interest is due annually. The effective interest rate is 12%. In 20x2, Golf Co. changed its business model for managing financial assets. Golf Co. only reports annually, every Dec. 31. The quoted prices are 103 on Dec. 31, 20x2 and 104 on Jan. 1, 20x3. 1. The bonds are reclassified from amortized cost to FVPL. How much is the gain (loss) on reclassification and where is that amount presented? a. 57,857 in P/L b. (43,292) in OCI c. 15,714 in P/L d. 57,857 in OCI 2. The bonds are reclassified from FVPL to amortized cost. What is the amount of premium or discount to be amortized over 615 the remaining life of the bonds reclassification date? a. 40,000 premium b. 40,000 discount subsequent to the c. 57,857 premium d. 57,857 discount 3 The bonds are reclassified from amortized cost to…

Question Content Area Sorenson Co. is considering the following alternative plans for financing the company:   Plan 1 Plan 2 Issue 10% bonds (at face) - $400,000 Issue $10 par common stock $600,000 $200,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and income tax is $150,000. Round your answers to two decimal places.   Earnings Per Common Share Plan 1 $fill in the blank 1 Plan 2 $fill in the blank 2

22 A company has an investment in 7% bonds with a par value of $180,000 that pays interest on October 1 and April 1. The amount of Interest accrued on December 31 (the company's year-end) would be: Mc Graw Hill Multiple Choice $2,100. $3,150. $1,050. $6,300. $12,600. Return to question 3:24 P 12/1/201

LL R You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry, LotsofDebt, Inc. finances its $36.00 million in assets with $33.00 million in debt and $3.00 million in equity. LotsofEquity, Inc finances its $36.00 million in assets with $3.00 million in debt and $33..00 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) LotsofDebt, Inc. LotsofEquity. Ino Calculate the equity multiplier. (Round your answers to 2 declmal places.) Equity multiplier LotsofDebt, Inc. LotsofEquity. Ine. Calculate the debt-to-equity. (Round your answers to 2 declmal places.) Debt-to-equity LotsofDebt. Inc. LotsofEquity, Inc. Mc <. Prev MED Type here to search DOOH F2 F4 F5 F7 F10 F11 F12 PrtScr 8- & 23 24 2 ) 4. 5. 9. 7. 8. %3D } 1

XYZ Company is considering the following financing plans. Plan 1 Plan 2 Plan 3 Bonds, 10% $3,000,000 Preferred stock, $100 par, 1% $2,000,000 $1,000,000 Common stock, $10 par $5,000,000 3,000,000 $1,000,000 $5,000,000 $5,000,000 $5,000,000 The company has earnings before interest and taxes of $750,000 and assumes a tax rate of 40%. Calculate earnings per share for each plan.

XYZ Company is considering the following financing plans.   Plan 1 Plan 2 Plan 3     Bonds, 10%     $3,000,000   Preferred stock, $100 par, 1%   $2,000,000 $1,000,000   Common stock, $10 par $5,000,000 3,000,000 $1,000,000     $5,000,000 $5,000,000 $5,000,000       The company has earnings before interest and taxes of $750,000 and assumes a tax rate of 40%. Calculate the earnings per share for each plan.     Plan 1 Plan 2 Plan 3 EBIT       Interest       EBT       Taxes       Net income       Preferred div.       Avail. for common       Common shares       Earnings per share

kayla M Benloss 6:53 PM Professor we can't see the problemm Shenika Tramaine Small 6:54 PM Professor, the question please Adela Durham 6:54 PM Example Exercise: Equity Investments- Less Than 20% Ownership (1 of 2) •On September 1, 1,500 shares of Monroe Company's common stock are acquired at a price of $24 per share plus a $40 brokerage commission. On October 14, a $0.60-per-share dividend was received on the Monroe Company stock. On November 11, 750 shares (half) of Monroe Company stock were sold for $20 per share less a $45 brokerage commission. At the end of the accounting period on December 31, the fair value of Monroe Company's stock is $27 per share. Monroe Company has 175,000 shares of commort stock outstanding. Journalize the entries for the original purchase, dividend, sale, and change in fair value under the fair value method placed it in the chat Let me know if you can see it Shenika Tranmaine Small 6:55 PM yes we can

Learning Objective 2:Question 2 Robertson Corp. provides pool supplies to community pools in the Midwest. This year, Roberston Corp. issued 2,500 bonds with a $1,000 face value. The nominal rate for each bond is 8%. Required: Prepare the necessary journal entries to record the issuance of these bonds assuming the bonds were issued (a) at par, (b) at 103, and (c) at 96.

Accounting Cullumber Carecenters Inc. provides financing and capital to the healthcare industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Cullumber, whose fiscal year ends on December 31. 2022 Jan. 1 Purchased at face value $1,089,000 of Javier Nursing Centers, Inc., 10-year, 5% bonds dated January 1, 2022, directly from Javier. Dec. 31 Accrual of interest at year-end on the Javier bonds. Assume that all intervening transactions and adjustments have been properly recorded and the number of bonds owned has not changed from December 31, 2022, to December 31, 2024. 2025 Jan. 1 Received the annual interest on the Javier bonds. Jan. 1 Sold $544,500 Javier bonds at 107. Dec. 31 Accrual of interest at year-end on the Javier bonds. Date Account Titles and Explanation Debit Credit 2022 + Debt Investments 1,089,000 Cash 1,089,000 31, 2022 Interest Receivable 54,450 Interest Revenue 54,450 2025 Cash…

Problem 16-3 (LG 16-2) An investment bank pays $24.30 per share for 3,080,000 shares of the KDO company. It then sells these shares to the public for $25. a. How much money does KDO receive? b. What is the investment banker's profit? c. What is the stock price of KDO? (For all requirements, enter your answers in dollars, not in millions.) a. Amount received by KDO b. Investment banker's profit Stock price of KDO C.