Sunbird Theatre Inc. owns and operates movies theaters throughout Floridaand Georgia. Sunbird Theatre Inc. has declared the following annualdividends over a six-year period: 2011, $20,000; 2012, $36,000; 2013,$70,000; 2014, $90,000; 2015, $100,000 and 2016, $150,000. During theentire period ended December 31 of each year, the outstanding stock of thecompany was composed of 100,000 shares of cumulative, preferred 1%stock, $30 par, and 400,000 shares of common stock, $20 par.Instructions1. Calculate the total dividends and the per-share dividends declared oneach class of stock for each of the six years. There were no dividendsin arrears on January 1, 2011. Summarize the data in tabular form,presented in the Excel template.2. Calculate the average annual dividend per share for each class of stockfor the six-year period.3. Assuming a market price per share of $37.50 for the preferred stockand $30.00 for the common stock, calculate the average annualpercentage return on initial shareholders' investment, based on theaverage annual dividend per share (a) for preferred stock and (b) forcommon stock.

A business may pay out annual dividends to its shareholders on a regular basis from its earnings.…

Answered: Sunbird Theatre Inc. owns and operates…

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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Mechforce, Incorporated had net income of $150,000 for the year ended December 31, 2022. At the beginning of the year, 17,000 shares of common stock were outstanding. On April 1, an additional 19,000 shares were issued. On October 1, the company purchased 4,000 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Mechforce paid the annual dividend on the 8,000 shares of 4.60%, $100 par value preferred stock that were outstanding the entire year. Required: Calculate basic earnings per share of common stock for the year ended December 31, 2022. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is complete but not entirely correct. Earnings per share $ 0.74 x
Financial Leaming Systems has 3.1 million shares of common stock outstanding and 117,066 shares of preferred stock. (The preferred pays annual cash dividends of $4.65 a share, and the common pays annual cash dividends of 26 cents a share) Last year, the company generated net profit (after taxes) of $7.627.939. The company's balance sheet shows total assets of $80 million, total liabilitios of $30 million, and $5 million in preferred stock. The firm's common stock is currently trading in the market at $46.72 a share. a. Given the preceding information, find the EPS, P/E ratio, and book value per share b. What will happen to the price of the stock if EPS rises to $3.38 and the P/E ratio stays where it is? What will happen if EPS drops to $1.39 and the P/E doesn't change? c. What will happen to the price of the stock if EPS rises to $3.38 and the P/E jumps to 28.8 times eamings? d. What will happen if both EPS and the P/E ratio drop-to $1.39 and 12.1 times earnings, respectively? e.…
To pay off a 100 000 00 loan, it is required that 20 semiannual payments that increase by 500.00 be made. determine the amount of the first payment if it due six months after the loan is made and interest if 7% compounded semi annuanly. draw the cash flow tnx.
In 2017 Pedroni Corporation reported net income of $1,000,000. It declared and paid preferred stock a dividend of $250,000. During 2017, Pedroni had a weighted average of 190,000 shares outstanding. Compute Pedroni's Earnings Per Share.
Hendo Inc. is constructing its pro forma financial statements for this year. At years end, Assets were $650,000 and Accounts Payable (the only liabilities account) was $175,000. Sales for the year were $825,000. Hendo expects to grow by 12% this year. Assets and Accounts Payable are expected to grow proportionally to Sales. Common Stock currently equals $175,000 and Retained Earnings are $127,000. Hendo plans to sell $18,000 of new common stock this year. The firm's profit margin on Sales is 5.5%, and 45% of its earnings will be paid out in dividends. How much NEW long-term debt financing will Hendo need this year to finance its expected growth? Hendo is currently operating at full capapcity.
During Year 3, Solomon Corporation reported after-tax net income of $3,635,000. During the year, the number of shares of stock outstanding remained constant at 9,540 of $100 par, 10 percent preferred stock and 397,000 shares of common stock. The company's total stockholders' equity is $19,500,000 at December 31, Year 3. Solomon Corporation's common stock was selling at $53 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.80 per share to common stockholders. Required a. Compute the earnings per share. (Round your answer to 2 decimal places.) b. Compute the book value per share of common stock. (Round your answer to 2 decimal places.) e. Compute the price-earnings ratio. (Round intermediate calculations and final answer to 2 decimal places.) d. Compute the dividend yield. (Round your percentage answer to 2 decimal places (i.e., 0.2345 should be entered as 23.45)) a Eamings per share b. Book value per share e. Price eamings ratio a. Dividend…
Marutzky Corporation had a net income of $2,200,000 for the year 2018. On January 1, 2018, the corporation had 300,000 shares of common stock outstanding and issued an additional 250,000 shares of common stock on October 1, 2018. Calculate the earnings per shares using the weighted-average number of common shares outstanding.
Carla Corporation reported net income of $315,350 in 2020 and had 50,500 shares of common stock outstanding throughout the year. Also outstanding all year were 4,500 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. Carla’s tax rate is 30%.Compute Carla’s 2020 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share $
The following transactions occurred last year at Jost Company: Issuance of shares of the company's own common stock $170,00o; Dividends paid to the company's own shareholders $7,000; Dividends received from investments in other companies' shares $4,000; Interest paid on the company's own bonds $11,000; Repayment of principal on the company's own bonds $40,000; Proceeds from sale of the company's used equipment $23,000; Purchase of land $120,00. Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows would be: $112,000 $123,000 $375,000 $19,000
The following transactions occurred last year at Jost Company: Issuance of shares of the company’s own common stock $170,000 ; Dividends paid to the company’s own shareholders $7,000; Dividends received from investments in other companies’ shares $4,000; Interest paid on the company’s own bonds $11,000; Repayment of principal on the company’s own bonds $40,000; Proceeds from sale of the company’s used equipment $23,000; Purchase of land $120,000 . Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows would be: a.$112,000 b. $123,000 c. $375,000 d. $19,000
Terrance Company reported $20,000 retained earnings at the beginning of the year. The company repurchased 200 shares at $50 per share during the year for the first time. Later, during the year the company sold 100 shares of these treasury shares for $45 per share. Terrance earned $15,000 net income during the year. The company also declared and paid dividends on 500 outstanding 4% preferred stock with $100 par value. Based on this information alone, compute the retained earnings balance at the end of the year. O $34,500 O $35,000 O $32,500 O $32,000 O $37,500

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