Reference is made to the 2022 Balance Sheet of Tram-Ropes limited. Tram-Ropes Limited Balance Sheet 2022 Cash Acc. Receivable Marketable securities Inventories Fixed Assets Total Assets 1,000,000.00 12,000,000.00 ii. 3,000,000.00 7,500,000.00 26,500,000.00 50,000,000.00 Accounts Payable Notes Payable Long-term Debt Common stock Preferred Stock Total Liabilities and Equity 8,000,000.00 8,500,000.00 20,000,000.00 7,500,000.00 6,000,000.00 50,000,000.00 Additional Information: i. The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and are currently selling for 95% of par. The company's common shares which have a book value of $20 per share are currently selling at $25 per share.
Reference is made to the 2022 Balance Sheet of Tram-Ropes limited. Tram-Ropes Limited Balance Sheet 2022 Cash Acc. Receivable Marketable securities Inventories Fixed Assets Total Assets 1,000,000.00 12,000,000.00 ii. 3,000,000.00 7,500,000.00 26,500,000.00 50,000,000.00 Accounts Payable Notes Payable Long-term Debt Common stock Preferred Stock Total Liabilities and Equity 8,000,000.00 8,500,000.00 20,000,000.00 7,500,000.00 6,000,000.00 50,000,000.00 Additional Information: i. The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and are currently selling for 95% of par. The company's common shares which have a book value of $20 per share are currently selling at $25 per share.
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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Question
Transcribed Image Text:iii.
iv.
V.
Preferred shares have a book value of $100 per share. These
shares are currently selling at $120 per share and pays
dividends of 6% per annum on book value.
The dividend growth rate is expected to be 3%, and dividend
for 2023 is projected to be $5.00 per share.
The Company's Tax rate is 30%.
Transcribed Image Text:Reference is made to the 2022 Balance Sheet of Tram-Ropes limited.
Tram-Ropes Limited
Balance Sheet 2022
Cash
Acc.
Receivable
Marketable
securities
Inventories
Fixed Assets
Total Assets
i.
1,000,000.00
ii.
12,000,000.00
3,000,000.00
7,500,000.00
26,500,000.00
50,000,000.00
Accounts Payable
Notes Payable
Long-term Debt
Common stock
Preferred Stock
Total
Liabilities and
Equity
8,000,000.00
8,500,000.00
20,000,000.00
7,500,000.00
6,000,000.00
Additional Information:
The Long-Term debt consists of 8% annual coupon bonds, with
15 years to maturity and are currently selling for 95% of
par.
The company's common shares which have a book value of $20
per share are currently selling at $25 per share.
50,000,000.00
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