Company DOrdinary sharesNumber of ordinary shares issuedShare price (pence)2022 dividend per share (pence)Dividend growth rateCompany DIrredeemable bondsNumber of bonds issuedMarket value per bondCoupon rate1,850,000360.024.03.8%12,000£96.004.0%Part (a)Please complete the following for the ordinary sharesDO (pence)PO (pence)gKeMVe (£)Interest per bond (£)Market value per bond (£)Tax rateKd24.0360.0Please complete the following for the irredeemable bondsMVd (£)3.80%10.72%6,660,0004.0096.0025.00%4.17%1,152,000

Ordinary share:2022 dividend per share ( Pence)24.0Share price (Pence)360.0Dividend growth…

Answered: Company D Ordinary shares Number of…

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

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1. ETK's 12/31/21 Balance Sheet reported the following information: 7.8% registered bonds callable at 107 beginning in 2031, due 2035 (net of unamortized discount of $2 million) $53 million Equity - Stock Warrants $5 million The company disclosed the following information regarding their 7.8% bonds: "The bonds were issued in 2012 at 105 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond was issued with 40 detachable stock warrants, each of which entitles the holder to purchase one share of the Company's $1 par common stock for $35, beginning 2022." How much did total liabilities increase when the bonds were issued in 2012?
The following information is taken from Multi-Task Corporation’s November 30, 2021 balance sheet: Liabilities: 6% Bonds payable, $4,500,000, maturing October 31, 2024, each $1,000 bond convertible into 25 common shares at any time up to October 31, 2024 $4,500,000 Shareholders’ Equity: 7% Cumulative preferred shares, convertible at the rate of 5 common shares for 1 preferred share, 44,380 shares outstanding 957,000 Common shares, 2,675,000 shares issued and outstanding 8,025,000 Multi-Task Corporation had net income for the 2021 year of $8,344,500. Multi-Task pays income tax at a rate of 28%. Both the bonds and the preferred shares were outstanding for the entire year. The weighted-average number of common shares outstanding for the 2021 year was 2,745,500. Required: Calculate basic earnings per share for Multi-Task Corporation for the year ending November 30, 2021. Calculate diluted earnings per share for…
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Induced Conversion Instructions Chart of Accounts General Journal X Instructions On July 1, 2020, Tuttle Company had bonds payable outstanding with a face value of $100,000 and a book value of $93,000. The interest on these bonds was paid on June 30. When these bonds were issued, each $1,000 bond was convertible into 25 shares of $10 par common stock. To induce conversion, on June 15, 2020, the terms were changed so that each bond was convertible into 28 shares of common stock if the conversion was made within 30 days. All the bonds were converted on July 1, 2020, when the market price of the common stock was $42 per share. Required: Next Level Using the book value method, record the conversion of the bonds on July 1, 2020. GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 5
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Which of the following best describes the ultimate goal of the financial manager in a corporation where shares are publicly traded? Avoid financial distress. Maintain steady earnings growth. Maximize stockholder wealth. Maximize sales.
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Conversion (or stock) value What is the conversion (or stock) value of each of the following convertible bonds? 1. A $1,000-par-value bond that is convertible into 25 shares of common stock. The common stock is currently selling for $50 per share.

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