34DRARSHelpSave & ExitBlair Madison Company issues $1.1 million of new stock and pays $201,000 in cash dividends during the year. In addition, thecompany took advantage of falling interest rates to borrow $1.51 million in a new bond issue and paid off existing bonds with aface value of $2.05 million. The company bought 501 of another company's $1,010 bonds at a $101,000 premium. The net cashflow provided by financing activities is:Multiple ChoiceAn outflow of $101,000.An outflow of $201,000.An inflow of $540,000.Su

To calculate the net cash flow provided by financing activities, we need to sum up all cash flows…

Answered: 34 DRARS Help Save & Exit Blair Madison…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 7P

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Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267
24.
Blair Madison Company issues $2.5 million of new stock and pays $341,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.65 million in a new bond issue and paid off existing bonds with a face value of $2.75 million. The company bought 515 of another company's $1,150 bonds at a $115,000 premium. The net cash flow provided by financing activities is:
Davis Corporation expects the following transactions in 20X3. Their first year of operations: 21. Sales (90% collectible in 20X3) Bad debt write-offs... Disbursements of costs and expenses Disbursements for income taxes. Purchases of fixed assets... Proceeds from issuance of ordinary shares.... Proceeds from short-term borrowings Payments on short-term borrowings. Depreciation on fixed assets P1,500,000 60,000 1,200,000 90,000 400,000 580,000 100,000 50,000 80,000 What is the cash balance at December 31, 20X3? P150,000 b. P170,000 a. c. P210,000 d. P280,000
As equal instalment payments are made on a long-term loan, both the interest portion and the principal portion decrease O the interest and principal portions remain the same. O the interest portion increases and the principal portion decreases. O the interest portion decreases and the principal portion increases. QUESTION 20 For last year, Bonita Corporation reported net income of $710,000, and paid $174,000 in dividends for the 250,000 preferred shares issued. The weighted average of common shares was 1,675,000 shares. Bonita's basic earnings per share was $0.42 $0.28 O $0.32 O $0.10
C. The profit after tax for Barstead for the year ended 30 September 2009 was $15 million. At 1 October 2008 the company had in issue 36 million equity shares and a $10 million 8% convertible loan note. The loan note will mature in 2010 and will be redeemed at par or converted to equity shares on the basis of 25 shares for each $100 of loan note at the loan-note holders’ option. On 1 January 2009 Barstead made a fully subscribed rights issue of one new share for every four shares held at a price of $2·80 each. The market price of the equity shares of Barstead immediately before the issue was $3·80. The earnings per share (EPS) reported for the year ended 30 September 2008 was 35 cents. Barstead’s income tax rate is 25%. Required:Calculate the (basic) EPS figure for Barstead (including comparatives) and the diluted EPS (comparatives notrequired) that would be disclosed for the year ended 30 September 2009.
Lifo Inc. raises $4 million dollars by issuing bonds with an interest rate of 10%. Assuming income tax rate of 30%, 100,000 common shares issued, and an increase in net income of $1,000,000 due to the additional resources, what is the effect on earnings per share? ) $40 increase b) $28 increase c) $4.20 increase d) $7 increase
An investor spends $25,000 for corporate bonds of another company late in Year One. The bonds are worth $26,000 at the end of that year on the open market. Early in Year Two, $1,300 in interest is received from this investment. Shortly thereafter, the debt investment is sold for $27,000. If this asset is an investment in trading debt securities, what is the impact on net income in Year Two? O Increase by $4,300. O Increase by $3,300. O Increase by $1,300. O Increase by $2,300.
Sunland Corporation earned net income of $340,000 in 2023 and had 100,000 common shares outstanding throughout the year. Also outstanding all year was $800,000 of 10% bonds that are convertible into 10,000 common shares. Sunland's tax rate is 30%. Calculate Sunland's 2023 diluted earnings per share. For simplicity, ignore the IFR$ requirement to record the debt and equity components of the bonds separately. (Round answer to 2 decimal places, e.g. 15.25.) Diluted earnings per share $
es Online Network Incorporated has a net income of $680,000 in the current fiscal year. There are 100,000 shares of common stock outstanding, along with convertible bonds, which have a total face value of $1.3 million. The $1.3 million is represented by 1,300 different $1,000 bonds. Each $1,000 bond pays 5 percent interest. The conversion ratio is 20. The firm is in a 20 percent tax bracket. a. Compute basic earnings per share. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Basic earnings per share b. Compute diluted earnings per share. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Diluted earnings per share
None
Metlock Corporation had net income for the current fiscal year of $ 952, 200, and common shares outstanding of 92,000. There were no changes to Metlock's common shares during the year.Metlock also had outstanding a $1,000,000,9 % bond sold in a previous year that was convertible to 82,000 common shares. In addition, Metlock sold a new bond on October 1 of the current year. The new bond was a $1,000,000, 13% bond, convertible to 76,000shares. Metlock was subject to a tax rate of 27 %. Calculate diluted earnings per share. (Round calculations of EPS to 3 decimal places, e.g. 3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Basic EPS Sub Total Diluted EPS $ $ Numerator Denominator $ $ EPS 11

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