For the past year, LP Gas, Inc. had cash flow from assets of $38,100 of which $21,500 flowed to the firm's stockholders. The interest paid was $2,300. What is the amount of the net new borrowing? a. -$14,300 b. -$9,700 c. $12,300 d. $14,300 e. $18,900

For the past year, LP Gas, Inc. had cash flow from assets of $38,100 of which $21,500 flowed to the firm's stockholders. The interest paid was $2,300. What is the amount of the net new borrowing? a. -$14,300 b. -$9,700 c. $12,300 d. $14,300 e. $18,900

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 2P: Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in...

See similar textbooks

Similar questions

Bank A has the following balance sheet: A ssets Reserves $50 million Liabilities Deposits $200 million Bank capital 850 million Securities $50 million Loans $150 million Bank B has the following balance sheet: A ssets Liabilities Deposits $225 million Bank capital $25 million Reserves $50 million Securities $50 million Loans $150 million 1. Both banks earn 85 million as an annual after-tax profit. Calculate ROA (return on asset) and ROE (return on equity) for both banks.
14. Suppose that you have generated the estimates listed below from a pro forma analysis for a company that had requested a three year loan. The loan is a $1.5 million term loan with the equal annual payments of principals. The P&I payments are due at the end of each year with the annual interest rate = Prime rate + 1.5%. Capital expenditure Cash dividends Cash flow from operations before interest expense a). b). c). Yr.1 250,000 140,000 750,000 Assuming the Prime rate = 7.5% each year. What will be the interest payment at year 3? 25,000 50,000 45,000 53,000 10,000 Yr. 2 125,000 140,000 780,000 Yr. 3 75,000 140,000 800,000
During the most current year, XYZ Corp paid $55,240 in interest and $80,400 in dividends. In order to fund a large expansion, the company also raised $297,000 in new equity and borrowed &197000 via the bond market, though a portion of the new borrowing was used to pay back $174,000 in bonds that were maturing this year. Calculate the cash flow to Shareholders.
The clean Bank has the following assets and liabilities as of year-end.All asset and liability item have face value of $1,000 and are priced at par.And interests and coupons are paid annually for all asset and liability items. Assets Amount($millions) Annual Rate Liabiltiies and Equity Amount($millions) Annual Rate 5-year loans 40 40% 3-year term deposit 20 4% 5-year coupon bonds 60 8% 5-year term deposit 30 8% Equity 50 Total 100 100 Please calulate the Clean Bank's maturity gap.What does the maturity gap imply about the interest risk of the bank?Will you view on the interest risk of the bank be different under duration model?Explain carefully..
A company issues $1.1 million of new stock and pays $201,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.51 million in a new bond issue and paid off existing bonds with a face value of $2.05 million. The company bought 501 of another company's $1,010 bonds at a $101,000 premium. The net cash flow provided by financing activities is: A) An outflow of $201,000. B) An inflow of $359,000. C) An inflow of $540,000. D) An outflow of $101,000
A company issues $1.1 million of new stock and pays $201,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.51 million in a new bond issue and paid off existing bonds with a face value of $2.05 million. The company bought 501 of another company's $1,010 bonds at a $101,000 premium. The net cash flow provided by financing activities is: A) An outflow of $201,000. B) An inflow of $359,000. C) An inflow of $540,000. D) An outflow of $101,000 G
Davis Corporation expects the following transactions in 20X3. Their first year of operations: 21. Sales (90% collectible in 20X3) Bad debt write-offs... Disbursements of costs and expenses Disbursements for income taxes. Purchases of fixed assets... Proceeds from issuance of ordinary shares.... Proceeds from short-term borrowings Payments on short-term borrowings. Depreciation on fixed assets P1,500,000 60,000 1,200,000 90,000 400,000 580,000 100,000 50,000 80,000 What is the cash balance at December 31, 20X3? P150,000 b. P170,000 a. c. P210,000 d. P280,000
Bank 1 is offering interest rate of 8.4% (compounds semiannually) on fixed deposits. Beck 2 is offering interest rate of 8.3% (compounds monthly) on fixed deposits. An investor invested amount of $15,000 for five years in the bank that is offering highest effective annual rate. What is the accumulated amount at the end of five years? a $22,683 b. $22.634 c. $22.451 d $22.982
A corporation deposits $20 million in a money market account for 1 year. What will be the difference in the total amount accumulated at the end of the year at 18% per year compounded monthly versus 18% per year simple interest?
Blair Madison Company issues $2.5 million of new stock and pays $341,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.65 million in a new bond issue and paid off existing bonds with a face value of $2.75 million. The company bought 515 of another company's $1,150 bonds at a $115,000 premium. The net cash flow provided by financing activities is:
A bank has three assets. It has $75 million invested in consumer loans with a three-year duration, $39 million invested in T-bonds with a 16-year duration, and $39 million in six-month maturity T-bills. What is the duration of the bank's asset portfolio in years? Group of answer choices 11.51 years 7.38 years 3.95 years 5.68 years
SLMA Corp. for the last ten years, has earned and had cash flows of about P600,000 every year. As per the predictions of the company'searnings, the same cash flow would continue for the foreseeable future. The expenses for the business every year is about P500,000only. Based on the available public information a P4 million Treasury bond has a prevailing return of P40,000 quarterly. Using Capitalization of Earnings approach, assuming SLMA would sell 20% of its shareholdings, what will be the minimum selling price? ANSWER: 2,500,000 provide the solution please