On June 8, Cullumber Ltd. was incorporated and issued 31,800 common shares for $318,000. On August 19, an additional 7,950shares were issued for $95,400. On November 2, the company paid $30,528 to repurchase 3,180 common shares and on December 7it paid $55,120 to repurchase 4,240 common shares.(a)Your answer is partially correct.Calculate the average cost of the common shares on June 8, August 19, November 2, and December 7. (Round answers to 2 decimalplaces, e.g. 15.25.)Average CostJune 8Aug. 19GA10.00$10.40Nov. 2$Dec. 7$13.00

The company can raise funds by various methods. Some of them are, by way of issuing common stock,…

Answered: On June 8, Cullumber Ltd. was…

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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Assuming there were no buying/selling fees, what would be the total capital gain if 173 shares of ABCD stock were purchased for $40.67 per share and all 173 shares were sold for $54.14 per share? Round your answer to the nearest penny.
Gulf Shores Inn is comparing two separate capital structures. The first structure consists of 315,000 shares of stock and no debt. The second structure consists of 270,000 shares of stock and $1.90 million of debt. What is the price per share of equity?
On January 20, Metropolitan Inc. sold 9 million shares of stock in an SEO. The market price of Metropolitan at the time was $41.25 per share. Of the 9 million shares sold, 4 million shares were primary shares being sold by the company, and the remaining 5 million shares were being sold by the venture capital investors. Assume the underwriter charges 5.3% of the gross proceeds as an underwriting fee. a. How much money did Metropolitan raise? b. How much money did the venture capitalists receive? c. If the stock price dropped 2.7% on the announcement of the SEO and the new shares were sold at that price, how much money would Metropolitan receive? a. How much money did Metropolitan raise? After underwriting fees, Metropolitan raised $ million. (Round to two decimal places.)
Phelps Labs has assets of $418,000, current liabilities of $126,000, and long-term liabilities of $131,000. There is $38,700 in preferred stock outstanding; 20,000 shares of common stock have been issued. Earnings available to common shareholders are $32,300. If the firm sells at two times book value per share, what will the P/E ratio be? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) P/E ratio times
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CAP Corporation has reacquired 50,000 of its shares at $13 per share. The average cost of these shares was $11 per share and there was a prior credit balance of $100,000 in the contributed surplus account. Assuming the balance in the contributed surplus account is the result of prior transactions relating to the shares now being reacquired, the effect on retained earnings would be as follows: a) a credit of $100,000. b) a credit of $650,000. c) a debit of $100,000. d) no impact.
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New Mexico Lumber recently reported that its earnings per share were $2.5. The company has 400,000 shares of stock outstanding. The company's interest expense was $500,000. The corporate tax rate is 38 percent. What was the company's operating income (EBIT)? If necessary, round it to a whole dollar.
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Winston Sporting Goods is considering a public offering of common stock. Its investment banker has informed the company that the retail price will be $18.40 per share for 670,000 shares. The company will receive $16.75 per share and will incur $225,000 in registration, accounting, and printing fees. 1. What is the spread on this issue in percentage terms? 2. What are the total expenses of the issue as a percentage of the total value (at retail)?

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