4. You are analyzing a convertible preferred stock andhave been given the following information:• There are 50,000 preferred shares outstanding, witha face value of $100 and a 6% preferred dividendrate.• The firm has straight preferred stock outstanding,with a preferred dividend rate of 9%.• The preferred stock is trading at $105.Estimate the preferred stock and equity componentsof this convertible preferred stock.1

Share Capital The purpose of issuing share capital to raise the additional fund which are useful…

Answered: 4. You are analyzing a convertible…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An index consists of the following securities. What is the value-weighted index return? Value-weighted Stock Shares Outstanding Beginning Share Price Ending Share Price L 4,000 $ 18 $ 26 M 3,000 $ 35 $ 41 Multiple Choice 22.03% 22.85% 25.25% 28.25% 30.00%
Gonzales Corporation’s common stock (Ordinary Shares) account for 2023 and 2022 showed: (check the attached photo) Calculate the (A) dividend yield, and (B) dividend payout. Choose the bullet with correct answer (A) 2023 – 0.025, 2022 – 0.036, (B) 2023 – 0.23, 2022 – 0.30 (A) 2023 – 0.035, 2022 – 0.046, (B) 2023 – 0.33, 2022 – 0.40 (A) 2023 – 0.045, 2022 – 0.056, (B) 2023 – 0.43, 2022 – 0.50 (A) 2023 – 0.055, 2022 – 0.066, (B) 2023 – 0.53, 2022 – 0.60 (A) 2023 – 0.065, 2022 – 0.076, (B) 2023 – 0.63, 2022 – 0.70
The following table shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year. Company Johnson Controls Medtronic Direct TV Qualcomm Portfolio Return Shares 450 300 Dollar return Percentage return 600 200 What is your portfolio dollar return and percentage return? Note: Round your answers to 2 decimal places. Beginning of Year Price $ 73.01 57.67 25.04 43.18 % Dividend Per Share $ 1.19 .43 .40 End of Year Price $85.97 53.61 24.49 39.02
The shares of stock sold to investors are Select one: a. Treasury shares. b. Authorized shares. c. Issued shares. d. Outstanding shares. A firm that sold one share of $1 par value common stock for $10 would Select one: a. Debit common stock for $1. b. Debit common stock for $10. c. Credit common stock for $1. d. Credit common stock for $10. For a bond issued at par, the cash received upon issue equals the present value of the bond’s Select one: a. Principal repayment minus the interest payments. b. Principal repayment and interest payments. c. Principal repayment. d. Interest payments.
The following cost data are available for Honesty Co. for its first month of operations: Job 201 Job 202 Job 203Direct materials 60,000 90,000 56,000Direct labor cost at 40 per hour 18,000 36,000 38,000Overhead is applied at the rate of 32 per direct labor hour. Job no. 201 and 202 were completed. Job no. 201 was sold, and job no. 203 remained incomplete at the end of the month. Honesty Co. incurred the following costs for the month: Direct material purchases, 300,000; Direct and indirect labor costs, 96,000; Factory overhead excluding indirect labor and indirect materials, 59,200; Indirect materials, 4,000.How much is the cost of goods manufactured for the month?
2. A certain company gave out P 25 dividend per share for its common stock. The market value of the stock is P 92. Determine the stock yield ratio.
8.
The following is the information on preferred stock issued by Huntington Power Co. Calculate the cost of preferred stock for the firm. Preferred Stock: Selling for $98. Dividends are $7 a share. a. 6.12% b. 5.45% c. 7.14% d. 9.57%
In each case in the following table,attached, how many dollars of preferred dividends per share must be paid to preferred stockholders before common stock dividends are paid?
Which of the following statements are true regarding dividends? Which of the following statements are true regarding dividends? check all that apply A large stock dividend is a distribution of more than 25% of previously outstanding shares. A stock split can be used to keep the stock price affordable. A small stock dividend is a distribution of 50% or less of previously outstanding shares. The date of payment reflects the date a cash dividend is paid to stockholders.
Here are data on two stocks, both of which have discount rates of 14%: Stock A Stock B Return on equity 14 % 10 % Earnings per share $ 1.50 $ 1.40 Dividends per share $ 1.20 $ 1.20 a. What are the dividend payout ratios for each firm? (Enter your answers as a percent rounded to 2 decimal places.) b. What are the expected dividend growth rates for each stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) c. What is the proper stock price for each firm?

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