Computeq Ltd is a listed company incorporated in NSW with an issued capital of $20 million. It is mainly a computer hardware company which produces computer equipment and supplies the parts to globally renowned and branded computer companies. Mints Ltd holds 40 per cent of the issued capital of Computeq. Miles Ltd holds 35 per cent and the remaining 25 per cent is held by a diverse group of shareholders. All of these shares are 'ordinary' shares, holding same rights, privileges, burdens and liabilities to all members. The company is located in North Ryde due to its proximity to the Macquarie University Research Park and the fact that the business advice they received suggested that the area is good for Computeq's type of business. Other than the directors, there are 56 employees at Computeq. Very recently Computeq tendered for the construction of a large hardware production plants in Parramatta and is likely to be the successful bidder. It will need an injection of funds to construct the production plant. The

Computeq Ltd is a listed company incorporated in NSW with an issued capital of $20 million. It is mainly a computer hardware company which produces computer equipment and supplies the parts to globally renowned and branded computer companies. Mints Ltd holds 40 per cent of the issued capital of Computeq. Miles Ltd holds 35 per cent and the remaining 25 per cent is held by a diverse group of shareholders. All of these shares are 'ordinary' shares, holding same rights, privileges, burdens and liabilities to all members. The company is located in North Ryde due to its proximity to the Macquarie University Research Park and the fact that the business advice they received suggested that the area is good for Computeq's type of business. Other than the directors, there are 56 employees at Computeq. Very recently Computeq tendered for the construction of a large hardware production plants in Parramatta and is likely to be the successful bidder. It will need an injection of funds to construct the production plant. The

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The Pyro Corporation has outstanding twenty thousandshares of common stock, of which nineteen thousandare owned by Peter B. Arson; five hundred shares areowned by Elizabeth Arson, his wife; and five hundredshares are owned by Joseph Q. Arson, his brother. Thesethree individuals are the officers and directors of thecorporation. The Pyro Corporation obtained a $750,000fire insurance policy to cover a certain building itowned. Thereafter, Peter B. Arson set fire to the building, and it was totally destroyed. Can the corporationrecover from the fire insurance company on the$750,000 fire insurance policy? Why or why not?
As of July 15,2006, Weis Markets' shares traded at a market-to-book-value ratios of 1.72. The corresponding figure for CVR was 0.93. Explain in economic terms why the companies' market-to-book ratios are so different.
An analyst gathered the following information regarding Beta Corporation: Current dividend per share = $2.18 Next year's expected dividend growth rate of 30% is expected to decline linearly over the following 8 years to a long-term constant growth rate of 6%. Řequired rate of return on the company's stock is 11%. The value of the company's stock today is closest to: 1. 41.86 2.98.54 3.88.07
Phil’s Flowers (PF) currently has 5,600,000 shares of stock outstanding that sell for $117 per share. Assuming no market imperfections or tax effects exist, what will be the total number of shares and the share price after each of the following? (Please consider each one independently). c) PF has a $2.50 cash dividend? (Step by step solutions )
A disadvantage of a statutory close corporation is that: a) it cannot distribute dividends to members. b) not all states allow formation of this type of corporation. C) it must keep accurate records and file paperwork to document tax-exempt status. d) it can have no more than 100 stockholders.
Identify the general rights (cash flow right and control right) that are commonly granted to common stock shareholders, preferred stock shareholders, and bondholders
The following data show the closing stock price of MNM Corporation for the last seven trading days. Please answer the following questions. Table 1 Day Stock Price 1 84 2 87 3 84 4 88 5 85 6 90 7 91 Range = ______________. Mean = ______________. Variance = ____________. Standard deviation = _________. (Round off your answer at 2 decimal places.) Coefficient of variation = ___________%. (Round off your answer at 2 decimal places.)
3
UT Corporation has the following (incomplete) balance-sheet statement (all values are in million dollars): Balance Sheet Assets 2020 2019 Current assets 155 143 Fixed assets Liabilities and Shareholders' Equity Current liabilities 655 560 119 51 Long-term debt 511 494 What is the percentage growth in the shareholders' equity between 2019 and 2020? (your answer must be rounded off to the nearest %, i.e., no decimal places)
A firm has net income of $134,502. There are 136,088 shares of stock outstanding at a price per share of $12.98. The price to book ratio is 5.74 and the firm has $117,799 in total liabilities. What is the firm's price-earnings ratio? Answer should be formatted as a number with 2 decimal places (e.g. 99.99).
U and L are two firms with the same EBIT of $100,000. They are identical in every respect except firm L has a debt of $500,000 at 5% rate of interest. The cost of equity of firm U is 8% and that of firm L is 12%. Assume that arbitrage principle will be applied in this setting and it is possible to make an arbitrage profit (surplus). Also, all earnings streams are perpetuities, taxes are ignored and both firms distribute all earnings available to common stockholders. Assume that an investor has 20% of shares (equity) of the firm L and MM assumptions hold. That is, you will be able to borrow or lend at the same rate as the firms can (5%). How much would the arbitrage profit (surplus) be for that investor who owns 20% of equity of the firm L and plans to create that arbitrage by switching to firm U? (Do not use the $ sign in your answer. If your answer is $12,345.67, then enter 12345.67 )