From the following data compute the 'Intrinsic' value of each category of equity shares of Ankit Ltd.:Shareholders funds100,000 'A' Equity shares of Rs.10 each, fully paid100,000 'B' Equity shares of Rs.10 each, Rs. 8 paid100,000 'C' Equity shares of Rs.10 each, Rs. 5 paidRetained Earnings Rs.9,00,000

The question is related to Valuation of Shares. Intrinsic Calue of share is calculated with the help…

Answered: From the following data compute the…

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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Gold River Corporation has the following data: Current Assets $206,000 Total Assets $20,000 Net Income $345,000 Current Liabilities $125,000 Total Liabilities $250,000 Stockholders' equity $270,000 Average common shares outstanding 10,000 What is Gold River's current ratio? a. 2.08 b. 1.64 c. 1.56 d. 0.82
Consider firm X and Y.The firm had total earrings of $400,000 and shares outstanding of $95,000. Firm X per share market value is 4.5, Firm X per share book value is$4.5. Firm Y per share had total earnings of $300,000 and shares outstanding of $192,500. FirmY per share market value is $24.5 Firm Y per share book value is $312.875. a. Assume that firm X acquires FirmY by issuing long term debt to purchase all the shares outstanding at a merger premium of$6.875. Assuming that neither firms has any debt before merger, what would be the total assets for the new company XY? b.Assume that Firm Y acquires Firm X by issuing long term debt to purchase all the shares outstanding at a merger premium of $2.375. Assuming that neither firm has any debt before the merger, what would be the total assets for the new company YX round your answer to four decimal places after the point
The company capital structure consists of debt 250000 at 0.071, preferred stock 230000 at 11% and common stock 120000 at 14%, calculate company’s weighted average cost of capital
calculate the enterprise value using following information: number of shares outstanding:25000 book value per share:$18 the price to book ratio: 4.0 excess cash in the company: $58000
Compute the gains or loss of the investment of C for 100 shares with par value of P5 at the beginning of the year which was sold at P10 per share the end of the year and D for 100 shares also with par value of P5 and was sold at P3 at the end of the year.
Calculate the weights of capital components based on the book value balance sheet Weight of each source = Book value of source / Total book value of liabilities & equity weight of debt: Wd weight of preferred stock: Wp weight of total common equity: We Current assets $2,000 Net fixed assets 3,000 Total assets $5,000 Total debt $2,100 Preferred stock 250 Common stock 1,300 Retained earnings 1,350 Total common equity $2,650 Total liabilities & equity $5,000 The firm's marginal tax rate is 35%. The firm's currently outstanding 10% annual coupon rate long-term debt sells at $1,051.11. The debt matures in 7 years. Coupon interest is paid semiannually. Skye's preferred stock pays a dividend of $3.30 per share, and its preferred stock sells for $30 per share. Skye's earnings per share last year were $3.20. The common stock sells for $55.00, last year’s dividend (D0) was $2.10, and a flotation cost (i.e,…
XYZ Corporation had the following balance sheet information: Total assets: $500,000Total liabilities: $200,000Shareholders' equity: $300,000If XYZ Corporation has 50,000 shares outstanding, what is the book value per share?
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Gadubhai
The company capital structure consists of debt 230000 at 6.45%, preferred stock 260000 at 15.40% and common stock 170000 at 11.33%, calculate and define the company's weighted average cost of capital
The following information is available for Hildebrand Corporation: Dividends paid to common stockholders $45,000 Dividends paid to preferred stockholders 20,000 Net income 295,000 Weighted average common shares outstanding 100,000 Compute the earnings per share of common stock. (Round answer to 2 decimal places, e.g. 10.50.) Earnings per share $
Mayan Company had net income of $132,000. The weighted-average common shares outstanding were 80,000. The company has preferred stock. The company's basic earnings per share is: Multiple Choice $44.00. $26.67 $1.59. $1.71. $1.65.

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