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SIXTH QUIZ FNCE 238/738 April 11, 2012 WRITE ALL ANSWERS ON THE TEST. IF YOUR ANSWER CONTINUES ON THE BACK, MAKE A NOTE OF IT ON THE FRONT. 30 PTS / 25 MINUTES NAME:_____________________________________________ SECTION (10:30, 12, 1:30):__________________________________

1. From Agence France Presse , March 6, 2012: Peugeot Citroen reveals new share price at 42% discount Auto group PSA Peugeot Citroen revealed on Tuesday that its new shares under a venture with General Motors will be issued at a 42.0 percent discount… The French group, which reported a current operating loss on auto activities last year of 92 million euros, also said that it would recommend waiving the dividend. The firm, which has announced a share issue to raise about 1.0 billion euros ($1.32 billion) to enable US group GM to acquire 7.0 percent of its capital, said that the new shares would be issued at 8.27 euros each. That was 42.0 percent below the price of PSA shares of 14.205 euros at the close of trading on Monday. … Under the new issue terms, existing shareholders will be able to subscribe to buy the new shares on a basis of 16 new shares for 31 shares held. a. (4 pts) From this information, what is the theoretical price at which shares of Peugeot will trade after they go ex-rights? [(31)(14.205)+(16)(8.27)]/(31+16) = $12.18 b. (4 pts) Suppose the rights are non-transferable, and that you own 31 shares, and you don’t have any more cash to invest in the firm. What should you do? Need to raise 16*8.27 = 132.32. Ex-rights share price is 12.18, so sell 132.32/12.18=10.86 shares (or more realistically, 11 shares) to raise this much cash, and spend it exercising the rights. If you don’t raise cash to exercise the rights, you’ll simply lose value.

2. From Business First of Louisville , March 29, 2012: CafePress Inc. launched its IPO Thursday, selling 4.5 million shares of common stock at an initial price of $19 per share. The total to be raised by the offering was $85.5 million. The company also has given its underwriters a 30-day option to buy an additional 675,000, valued at about $12.8 million. The company earlier had targeted a price between $16 and $18. With a total of about 17 million shares outstanding, the market value of the company is about $323 million. a. (4 pts) Given this information, do you think the first-day return will be high or low? Explain. At $19, the offering price is above the initial range of $16-18. Empirically, offerings priced above the initial range have had relatively high first-day returns. This is consistent with the upward pricing of offerings being under-reactions to the enthusiasm shown by investors, so as not to spoil their incentive to show enthusiasm. b. (4 pts) The company has given the underwriters the option to buy 675K more shares. Why make it optional? Given the information provided, do you expect the underwriters to exercise this option? Explain. This “Green Shoe”, or “Overallotment”, option allows the underwriter to oversell the offering in the first place, and then either buy back the oversold shares off the open market if demand is weak, or exercise the option if it is strong. So the optionality allows the underwriter to prepare for after-market price support if necessary, without losing money on the oversold shares if it isn’t necessary. Because the offering was priced up from the initial range, and because this generally portends a market price well above the offering price, the expectation would be that the green shoe would be exercised.

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3. (8 pts) Your production company wants to raise money to produce one of two scripts: JFK II (J2) or Lord of the Rings IV: A New Beginning (L4). Each costs $80MM to produce. Everybody knows that one of these scripts is higher-risk and lower-value, and everybody also knows that only you know which one is the higher-risk, lower-value script. Specifically, everybody knows that there is a good state and a bad state, each with probability ½, and that the payoffs are Bad State Good State Lower-risk, higher-value script $60MM $120MM Higher-risk, lower-value script $40MM $130MM and everybody also knows that only you know which is the payoffs of J2 and which is the payoffs of L4. You want to raise money toward the production cost by selling a bond with face value $40MM, to be paid out of the movie’s payoffs, and whatever you don’t raise from selling the bond you need to pay in yourself. Would this be wise, financing this way? Explain. With $40MM in debt outstanding, the payoffs to equity would be Bad State Good State Lower-risk, higher-value script $20MM $80MM Higher-risk, lower-value script $0MM $90MM So the payoff from the higher-value script is ½(20+80) = 50, and from the lower-value script is ½(0+90)=45. So your incentive would be to choose the higher value script. Since the bond definitely pays off 40, it sells for 40, so you pay in 80-40=40 for a payoff of 50, so your NPV is 10. You get the entire NPV of the higher-value script; you can’t do better than that. So in that sense, this would be wise.

4. (6 pts) Recent News: On April 4, UMH Properties, Inc. announced it completed the pricing of an underwritten public offering of 1,000,000 shares of its 8.25 percent Series A Cumulative Redeemable Preferred Stock (the "Series A Preferred Stock") at an offering price of $25.292 per share. The Series A Preferred Stock has a $25 liquidation value per share. To a prospective investor in this security, what are the sources of confidence that he would receive its scheduled payments? Key Points • Senior w/r/t Common for dividends • Cumulative, so have to make up all dividends before paying anything to common • In liquidation, get $25/share before common gets anything • OK if you didn’t mention it, but also relevant that preferred holders elect board members if divs fall far enough behind.

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17.39 .. 90 PROBLEMS OF SEMESTER FINAL TEST 2021 Word es Mailings Review View Help O Tell me what you want to do Aa - AaBbCeDd AaBbCcl AaBbCcDe AaBbCcDe AaBt Heading 2 Heading 3 T Normal I No Spac. Headin Paragraph Styles 4.5.6 7 8.. 9. • 10. 11 12. 13. 14. 15.I Thursday : January 21, 2021 --- 80 Minutes 1. In this section we examine three theories of investor preference: The dividend irrelevance theory. The "bird in the hand" theory, the tax preference theory, which theory is the best? What is the different of stock dividends, stock splits, and stock repurchase. 2. In the working capital management, we know about cash conversion cycle model. For problem if average inventories are $3 million and sales are $11 million. If receivables are S 657.535 and sales are S 11 million. Then, if its cost of goods sold are $9 million per year and if its accounts payable average $ 657.535. What is the length of the cash conversion sicle? 3. The ELGRAJO Corporation has capital structure as follow…

A Final Exam - MATH 1330 - Math b Details | bartleby E New tab A https://www.webassign.net/web/Student/Assignment-Responses/submit?dep=254878928tags=autosave#question4023958_1 Sign in 12. DETAILS HARMATHAP12 6.2.009. MYΝΟΤΕS What are the future value and the interest earned if $4000 is invested for 3 years at 8% compounded quarterly? (Round your answers to the nearest cent.) future value 24 interest earned %24

+V My Questions | bartleby b References Chapter 3 Quiz Camden County College camdenccinstructure.com/courses/3788/assignments/35967?module_item id=88693| Next> K Prev Send to Gradebook Submitted to Gradebook, Fri, Oct 4, 2019, 9:34:35 AM (America/New York -04:00) --/1 Question 15 View Policies Current Attempt in Progress Concord Industries has equivalent units of 7100 for materials and for conversion costs. Total manufacturing costs are $124370. Total materials costs are $91000. How much is the conversion cost per unit? O $17.52. O $4.70. $12.82. O $30.33 eTextbook and Media Submit Answer Save for Later Attempts: 0 of 1 used 11:10 A 10/4/20 hp ins prt sc end home f12 11 DI delete f9 f8 f7 f6 fs 10 + & % num backspace 6 7 lock 5 { P T U Y II 96

5:42 AM Tue Nov 16 * 100% www-awu.aleks.coma Exam 2, 7.3-9.4 REVIEW Report Overall Assignment Score: 73% (Best Score) Ninotchka V Score. O O pont Submitteu. NOV Z 7.32 1 IVI Tme Spet. S s Español Incorrect Your answer is incorrect. Salma wants to save money to open a tutoring center. She buys an annuity with a monthly payment of $27 that pays 3.7% interest, compounded monthly. Payments will be made at the end of each month. Find the total value of the annuity in 10 years. Do not round any intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas. 圖 Answer Submitted: 00 $12345.92 Correct Answer: $3913.49 Assignments List EVEI IVIUIawll LLC. All Rights Reserved. Terms of Use Privacy Center Accessibility II

Eat min C e New tab Λ Content xW Quiz 3-MAT-143, section 03F, Fa X + Q A ✩ https://www.webassign.net/web/Student/Assignment-Responses/last?dep=34832472 Viewing Saved Work Revert to Last Response DETAILS MY NOTES You deposit $850 in an account paying an annual simple interest rate of 7.8%. Find the future value of the investment (in dollars) after 1 year. DETAILS MY NOTES Calculate the simple interest due (in dollars) on a 40-day loan of $1,600 if the annual interest rate is 9%. (Use 360 days in 1 year.) $ DETAILS MY NOTES

ccounting | Spring 2023 uiz Course Home - kar X K Chapter 9 Quiz OA. $18,200 OB. $18,800 OC. $17,500 O D. $20,300 mylab.pearson.com Question 5 of 10 X G At year-end, Snow 0 4 kara harper 04/09/23 10:36 AM This quiz: 10 point(s) possible This question: 1 point(s) possible ? Submit quiz Buddy Company uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts had a credit balance of $800. During the year Buddy wrote off uncollectible receivables of $2,100. Buddy recorded Bad Debts Expense of $2,800. Buddy's year-end balance in Allowance for Bad Debts is $1,500. Buddy's ending balance of Accounts Receivable is $20,300. Compute the net realizable value of Accounts Receivable at year-end.

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New tab x Content x Quiz 3-MAT-143, section 03F, Fax + https://www.webassign.net/web/Student/Assignment-Responses/last?dep=34832472 a A ✰ DETAILS MY NOTES ASK YOUR TEACHE A newspaper editor starts a retirement savings plan in which $225 per month is deposited at the beginning of each month into an account that earns an annual interest rate of 6.4% compounded monthly. Find the value of this investment (in dollars) after 20 years. (Round your answer to the nearest cent.) $ DETAILS MY NOTES ASK YOUR TEACHI logo design company purchases four new computers for $12,500. The company finances the cost of the computers for 3 years at an annual interest rate of 5.175% compounded monthly. Find the month ayment (in dollars) for this loan. (Round your answer to the nearest cent. See Example 8 in this section.) Submit Assignment Home My Assignments Request Extension Copyright © 1998-2024 Cengage Learning, Inc. All Rights Reserved | TERMS OF USE PRIVACY 12:03 PM

%24 %24 %24 %24 %24 eNOWv2 | Online teachin X Assignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator3D&inprogress3false Blackboard Learn US: The Texas Abort... eb California governor... USN Idaho Supreme Co... Oklahom ... Calculate interest using a 360-day year. If required, round your answers to the nearest cent. Principal Interest Rate Time Interest $2,700 9.6% 30 days 45 days 3,300 6.0% 80 days 3,800 10.5% 120 days $4 5,300 150 days

Q 11

WAMAP E case study 10- Google Docs wamap.org/assess2/?cid%3D25677&aid31349485#/skip/8 a THS Bookmarks Shakespeare's Life . Events - 8th Grade.. E Dystopia LT Trackin.. ConnectED Studer Course Messages Forums Calendar Gradebook Log Out Home > Math 147 - Spring 2021> Assessment Homework 11 core: 1/12 2/12 answered Question 8 Suppose you invest $120 a month for 5 years into an account earning 8% compounded monthly. After 5 years, you leave the money, without making additional deposits, in the account for another 23 years. How much will you have in the end? $ Question Help: D Video 1 D Video 2 M Message instructor D Post to forum Submit Question

wick X > Student Portal | UAG x A Week 3 - Learning Ac x > Question 5 - Week 3 X G On January 1, 2024, S X C On January 1, 2021, S X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddlew aged bookmarks SNCC Resources ACS SIR CP Changepoint > Concur > Footprints Smart.ly > Medrisk ClaimExpert S Juris Verint - Sch ek 3-Learning Activity i Saved 5 oints eBook Print References On January 1, 2024, Sledge had common stock of $150,000 and retained earnings of $290,000. During that year, Sledge reported sales of $160,000, cost of goods sold of $85,000, and operating expenses of $43,000. On January 1, 2022, Percy, Incorporated, acquired 90 percent of Sledge's outstanding voting stock. At that date, $63,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $23,000 to an undervalued building (with a 10-year remaining life). In 2023, Sledge sold inventory costing $10,800…

Question 7 of 13 - Module One + education.wiley.com/was/ui/v2/assessment-player/index.html?launchld=0db9e60e-b27b-40f9-b0bf-0c88ee4c36ba#/question/6 Module One Problem Set Question 7 of 13 -/4 == Your first internship assignment is to prepare two schedules for Windsor Blue Co., a manufacturing company. You have a file that contains a copy of last year's work for both schedules; you plan to follow the same format as last year, hoping the staff accountant had it right. You also have access to the full set of financials for Windsor Blue, and you can dig further into any of the accounts via the accounting system, too. Here's the information you have pulled, with the same items as last year. DM Inventory WIP Inventory FG Inventory DM purchases DL costs Production supervisor salary Utility costs in production space Depreciation on manufacturing facility and equipment Beginning of Year End of year $9,200 $10,000 21,000 13,000 6,300 8,000 153,000 232,000 56,000 14,000 42,000 វា វា

9 Concept 1: Competition & Dep x 9 16.4 Savings plan homework u x Login - Powered by Skyward 9 Paired Selections - STAAR Prep x A my.hrw.comAwwtb/api/viewer.pl O Personal Math Trainer Lesson 16.4 - Homework-Homework 3 6 7 Round your answers to two decimal places, if necessary. At the beginning of each of the last three years, Lucas put $7,000 from his earnings as a waiter into a college savings account that earned 1.7% interest compounded annually. Now he will spend an estimated $21,600 to attend his local community college for 2 years and not take out a student loan. Complete the table to determine whether Lucas has saved enough money to attend community college. 2 3 Year 1 Beginning balance $0 Amount deposited $7,000 $7,000 $7,000 New balance $7,000 $ Amount of interest earneds Ending balance $ Lucas (select) v enough money to attend community college. v Check Answer Ne Question 5 of 8 P Search ILLUCH

Mc Graw Hill סוי M Question 6 - Week 11 - Homework #7 (100 points) - Connect Week 11 - Homework #7 (100 points) i ezto.mheducation.com b) Success Confirmation of Question Submission | bartleby Saved Help Save & Exit Submit 6 10 points eBook Consider the following situations for Shocker: 1. On November 28, 2024, Shocker receives a $3,450 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue was credited on November 28. 2. On December 1, 2024, the company paid a local radio station $2,490 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising was debited on December 1. 3. Employee salaries for the month of December totaling $7,300 will be paid on January 7, 2025. Hint Required: Record the necessary adjusting entries for Shocker at December 31, 2024. No adjusting entries were made during the year. (If no entry is required for a particular transaction/event, select "No Journal…

X Chapter 11 Homework CengageNOWv2 | Online teachin + x x v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker-&takeAssignmentSessionLocator-assignment-take&inprogress-false A mework eBook Calculator Print Item Present Value of an Annuity On January 1 you win $2,480,000 in the state lottery. The $2,480,000 prize will be paid in equal installments of $310,000 over 8 years. The payments will be GO made on December 31 of each year, beginning on December 31. If the current interest rate is 7%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar. ANKSHEETAL BLANKSHEETAL AP.1 ALGO 1AP.1 13.AP.1 ALG0 014 AP.2.BLANKSHE -015 AP.2 Next Previous Chedk My Work ress: 6/10 items 7:37 AM e # 11/17/2019 Type here to search hp

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Auditing || fall20 Dashboard My courses ACCT4141_iram_fall20 WEEK 7: 25 OCTOBER - 31 OCTOBER Case study 2 Separate groups: 5 My Submissions Case 2 Title Start Date Due Date Post Date Marks Available Case study 2 - Case 2 27 Oct 2020 - 08:00 28 Oct 2020 - 06:00 28 Oct 2020 - 19:00 100 Summary: On Chapters 9, 10, and 11: The YuRaeKa charity was established in 1960. The charity’s aim is to provide support to children from disadvantaged backgrounds who wish to take part in sports such as tennis, badminton, squash, basketball and football. YuRaeKa has a detailed constitution[1] which explains how the charity’s income can be spent. The constitution also notes that administration expenditure cannot exceed 10% of income in any year. The charity’s income is derived wholly from voluntary donations. Sources of donations include: (i) Cash collected by volunteers asking the public for donations in shopping areas, (ii) Cheques sent to the charity’s head office, (iii) Donations…

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