Assets Cash S.T. Investments Accts Receivable Inventories Total Current Assets Net PP&E Total Assets Liabilities Accts Payable Notes Payable Accruals Balance Sheet Current Liabilities L.T. Bonds Preferred Stock Common Stock Retained Earnings Total Equity Total Liab. & Equity Less: Interest 2021 120 30 400 1,200 1,750 3,000 4,750 Pre-tax Earnings 100 100 300 500 520 200 530 3,000 3,530 4,750 Net Sales COGS except Dep Depreciation & Amortization Other Operating Expenses. EBIT Income Statements 2021 5,500 3,800 180 600 920 60 860 215 Taxes(25%) Preferred Dividends 15 Net Income for CS Holders 630 2020 $102 40 384 774 1,300 1,780 3,080 180 28 370 578 350 100 500 1,552 2,052 3,080 WACC Cost of Capital = 12.0% Return on Investment (ROI)= 15.97% Number of Common Stock Outstanding = 1,200 Price of Common Stock = 4.00 2020 4,800 3,710 180 470 440 40 400 100 7 293
Assets Cash S.T. Investments Accts Receivable Inventories Total Current Assets Net PP&E Total Assets Liabilities Accts Payable Notes Payable Accruals Balance Sheet Current Liabilities L.T. Bonds Preferred Stock Common Stock Retained Earnings Total Equity Total Liab. & Equity Less: Interest 2021 120 30 400 1,200 1,750 3,000 4,750 Pre-tax Earnings 100 100 300 500 520 200 530 3,000 3,530 4,750 Net Sales COGS except Dep Depreciation & Amortization Other Operating Expenses. EBIT Income Statements 2021 5,500 3,800 180 600 920 60 860 215 Taxes(25%) Preferred Dividends 15 Net Income for CS Holders 630 2020 $102 40 384 774 1,300 1,780 3,080 180 28 370 578 350 100 500 1,552 2,052 3,080 WACC Cost of Capital = 12.0% Return on Investment (ROI)= 15.97% Number of Common Stock Outstanding = 1,200 Price of Common Stock = 4.00 2020 4,800 3,710 180 470 440 40 400 100 7 293
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 5 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education