Power Temporaries Inc. has earnings of $5,000,000 with 2,200,000 shares outstanding before a public distribution. Ten hundred thousand shares will be included in the sale, of which 600,000 are new corporate shares and 400,000 are shares currently owned by Julie Lipner, the founder and CEO. The 400,000 shares that Julie is selling are referred to as a secondary offering and all proceeds will go to her. (Round the final answers to 2 decimal places.) a. What were the corporation's earnings per share before the offering? Earnings per share $ 2.27 b. What are the corporation's earnings per share expected to be after the offering? Earnings per share $ LA

Power Temporaries Inc. has earnings of $5,000,000 with 2,200,000 shares outstanding before a public distribution. Ten hundred thousand shares will be included in the sale, of which 600,000 are new corporate shares and 400,000 are shares currently owned by Julie Lipner, the founder and CEO. The 400,000 shares that Julie is selling are referred to as a secondary offering and all proceeds will go to her. (Round the final answers to 2 decimal places.) a. What were the corporation's earnings per share before the offering? Earnings per share $ 2.27 b. What are the corporation's earnings per share expected to be after the offering? Earnings per share $ LA

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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For the current year, Spiderman Company received a donation of 3,000 shares with a par value of P20 from the shareholder. The market value of the share was P150. The shares were originally issued P50 per share. As a result of the donation, what was the decrease in the shareholder’s equity?
Sandy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is accounted as Financial Assets Through Profit or Loss and has a carrying value of P3,300,000. X Corporation declared a 10% stock dividend but gave the investors the option to receive P210 per whole stock of dividend. How much cash will Sandy receive? In your solutions, show the journal entry to record the dividends if Sandy opted to receive cash.
Assume you purchased 1,000 shares of Pharma Group, a pharmaceuticals manufacturer, at the market's opening price of $22/share on January 4, 2019, and held the position for the following two years. Further assume you reinvested back into the stock at its closing price on that same day the dividends were paid [Note: you may assume you can hold fractional shares rounded to two decimal places]. You then sold the entire position at the closing price of $23.96 on January 3, 2021. Here are the dividends you received: Dividend Date Dividend per Share Stock's Closing Price May, 1, 2019 $0.299412 $19.49 April 29, 2020 $0.280880 $21.39 What was the holding period return of this position? What was the effective annualized return?
The Windsor Corporation has 120,000 shares outstanding with a current market price of $8.10 per share. The company needs to raise an additional $36,000 to finance new expenditures and has decided on a rights issue. The issue will allow current stockholders to purchase one additional share for 20 rights at a subscription price of $6 per share. How many new shares must be issued? What will be the ex-rights stock price? If the ex-rights price were set at $7.90, would you as a potential new stockholder choose to buy shares ex-rights or buy shares at the old price and exercise your rights?
Raghubhai
Todd Winningham IV has $5,700 to invest. He has been looking at Gallagher Tennis Clubs Inc. common stock. Gallagher has issued a rights offering to its common stockholders. Six rights plus $64 cash will buy one new share. Gallagher's stock is selling for $82 ex- rights. a-1. How many rights could Todd buy with his $5,700? (Do not round intermediate calculations and round your answer to the nearest whole number.) Number of rights a-2. Alternatively, how many shares of stock could he buy with the same $5,700 at $82 per share? (Do not round intermediate calculations and round your answer to the nearest whole number.) Number of shares b. If Todd invests his $5.700 in Gallagher rights and the price of Gallagher stock rises to $90 per share ex-rights, what would his dollar profit on the rights be? (First compute profit per right.) (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Dollar profit
Teasler Inc. currently trades at $40 and has 9 million shares outstanding with Net Income of $12 Million. The Board decides to use a rights offering to raise new capital. Each shareholder will receive one right for each share. Laila Sims currently owns 4,000 shares of Teasler stock. Four rights plus $34 cash are needed to buy one new share. The ex-rights date is in 30 days. a. What is the value of a right? b-1. How many of the new shares could Laila buy if she exercised all her rights? b-2. How much cash would this require? c. How many new shares is Teasler issuing and what are the proceeds? d. If the price of Teasler shares price moves to $30 what is the value of the right ( Assume still rights-on)
Hargrave Kitchen & Bath has 6 million shares outstanding at a price of $33.25 per share. The company has decided to raise capital through a rights issue. All shareholders will be issued one right per share. For every five rights held by the stockholder, they can buy one share at a price of $33.25. How much money will this raise, if all shareholders exercise their rights? Round to one decimal place. A. $30.0 million B. $33.3 million C. $39.9 million D. $234.4 million E. $199.5 million
Jolie has an outstanding order with her stock broker to purchase 1,000 shares of every IPO. The current three IPOs are each priced at $16 a share and all started trading this morning. Jolie was allocated 300 shares of IPO A, 100 shares of IPO B, and 1,000 shares of IPO C. IPO A opened at $17 a share this morning and ended the day at $17.50 a share. IPO B opened at $21 a share and finished the day at $23 a share. IPO C opened at $16 a share and ended the day at $14.50 a share. What is Jolie's total profit or loss on these three IPOS as of the end of the day? O a. -$400 O b. -$350 O c. -$200 O d. -$150 O e. -$100
A shareholder owns 15,000 shares costing P3,000,000. Subsequently, the shareholder receives notice that share is split 2-for-1. What amount of gain on sale will be recognized if 6,000 shares will be sold for P228 per share?
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