(3) Under the original term, BAÇ Warrants gave Berkshire the right to buy700 million shares of BAC common stock for an additional cash of $5billion. Assume that Berkshire exercises the warrants under the originalterm. What would be the effect on the financial statements of BAC whenBerkshire exercises the warrants under the original term?Total assets: [ Select ]Total liabilities: [ Select ]Total equity: [ Select]Net income: [ Select ]

TOTAL ASSETS will increase as the cash flow from financing activity will increase. therefore it will…

700 million shares of BAC common stock for an additional cash of $. billion. Assume that Berkshire exercises the warrants under the orig term. What would be the effect on the financial statements of BAC Berkshire exercises the warrants under the original term? Total assets: [ Select ] Total liabilities: [ Select ]

700 million shares of BAC common stock for an additional cash of $. billion. Assume that Berkshire exercises the warrants under the orig term. What would be the effect on the financial statements of BAC Berkshire exercises the warrants under the original term? Total assets: [ Select ] Total liabilities: [ Select ]

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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1. What is the amount of dividend per share that MOONSTONE paid on March 31, 2021? 2. How much is the ordinary share capital, December 31, 2021? 3. How much will is the total cash dividends paid during the year 2021? 4. Number of fractional warrants outstanding as of December 31, 2021 5. How much is the retained earnings appropriated for contingency loss?
Explain thoroughly why it is the answer.
7. What amount is credited to share premium if all of the share warrants are exercised? A. 4,350,000 B. 3,750,000 C. 4,150,000 D. 0 E. None of the above
answer ty
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You are given the following information about Target Inc.: Identifiable assets: Carrying amount: $ 540,000 Fair value: $ 485,000 Identifiable Liabilities: Carrying amount: $ 150,000 Fair value: $ 190,000 The total number of shares issued by Target is 20,000, at an average market price of $23 per share. Consider two scenarios: 1) Shell Inc. is set up to acquire Target, and buys for cash 100% of the issued share capital of Target for $ 510,000. 2) Shell buys an 82% stake in Target, thus acquiring a majority interest. The price paid is now $425,000. Assume that the tax rate is 0, so that you can ignore any deferred tax considerations. REQUIRED: A) Calculate the value of goodwill at acquisition date for the two scenarios, using both the full and partial method of goodwill in scenario 2). B) Provide all of the consolidation entries at the date of acquisition (not only those related to the elimination…
You have been provided with the following information regarding Strummer PLCFinancial position statement as at 31st DecemberK000• Non-current Assets 33,344• Current Assets 15,345• Current Liabilities (9,679)• 5% bonds (redeemable in 6 years) (4,650)• 9% irredeemable bonds (8,500)• Bank Loan (3,260)22,600Ordinary shares (K1 par value) 6,4008% preference shares (K1 par value) 9,000Reserves 7,20022,6001. The current dividend, shortly to be paid, is K0.23 per share. Dividends in the future are expected to grow at a rate of 5% per year2. Corporate tax currently stands at 30%3. The interest rate on bank borrowings currently stand at 7%4. Stock market prices as at 31st December (all ex-dividend or ex-interest)Ordinary shares K4.17Preference shares K0.895% bonds K96 per K100 bond9% irredeemable bonds K108 per K100 bondRequired1. Calculate the costs of the individual sources of finance2. Calculate the book and market values of the individual sources of finance3. calculate the company’s current…
l-Itihad Corporation Balance SheetDecember 31, 2019AssetsLiability & EquityCurrent AssetsCurrent LiabilityCash$5,000Accounts payable22,000Short term securities10,000Accrual Account8,000Account Receivables30,000Short term debt6,000Inventory32,000Total Current Liability36,000Long-term debt40,000Total Current Assets77,000TotalLiability76,000Long term AssetsEquityNet Property & equipment70,000CommonStocks64,000Retained earnings17,000Total Equity81,000Total Liability and Equity157,000Other assts 10000Total Assets157,000Sur Corporation Income StatementDecember 31, 2019Other Financial information of Sur corporation December 31, 2019Net sales (revenue)$150,000· Average Number of Common shares outstanding 16,000 Shares· Market price of Common share $3.5Cost of goods sold80,000Gross profit70,000Operating expenses30,000EBIT- (Operating profit)40,000Interest expense10,000EBT- ( Earnings before taxes)30,000Income tax 10,000Net Income (net profit)20,000You have to find the following ratios…
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