### Market Value Balance Sheet Analysis**Balance Sheet Overview for Quinn Corporation:**- **Cash:** $49,300- **Fixed Assets:** $355,000 - **Total Assets:** $404,300 - **Equity:** $404,300This balance sheet represents Quinn Corporation in market value terms with 12,000 shares of stock outstanding.---**Stock Repurchase Plan:**The company plans to repurchase $17,400 worth of stock instead of issuing a dividend of $1.45.**Impact on Equity:**- **Question:** What effect will this transaction have on the equity of the firm? - **Instruction:** Input the change in shareholders' equity as a positive value. Do not round intermediate calculations. **Answer:** [Input field for equity change]---**Shares Outstanding Post-Repurchase:**- **Question:** How many shares will be outstanding after the repurchase? - **Instruction:** Input the new number of shares outstanding, rounded to two decimal places. Do not round intermediate calculations. **Answer:** [Input field for new shares outstanding]---**Price Per Share Post-Repurchase:**- **Question:** What will the price per share be after the repurchase? - **Instruction:** Calculate and round the price to two decimal places, ensuring intermediate calculations are not rounded. **Answer:** [Input field for new share price]---This exercise helps in understanding the impact of share repurchases on a firm’s balance sheet, equity, and stock price.

The stock repurchased by the company from the market is called the treasury stock. It is deducted…

Answered: The balance sheet for Quinn Corporation…

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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A public company has the following balance sheet ($000’s) Cash $540 Accounts Receivable $4,580 Inventories $7,400 Long Term Debt $12,590 Net Fixed Assets $18,955 Common Equity $18,885 Total Assets $31,475 Total debt & Equity $31,475 At present, the firm’s common stock is selling for a price equal to its book value, and the form’s bonds are selling at par. The market requires a 15% return on the common stock, the firm’s bond’s command a yield to maturity of 8% and firm faces a tax rate of 34%. What is the firm’s weighted average cost of capital?
Problem:
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,600,000 Preferred $5 stock, $50 par 211,000 Common stock, $10 par 1,635,250 Income before income tax expense was $409,600,and income taxes were $61,450 for the current year. Cash dividends paid on common stock during the current year totaled $89,939. The common stock was selling for $22 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, If required. a. Times interest earmed ratio times b. Earnings per share on common stock C. Priceeamings rabo d. Divioends per share of common stock e. Dividene yd
Financial statement data for the current year for Hanz Corp. are as follows: Line Item Description Amount Net income $5,700,000 Preferred dividends $70,000 Average number of common shares outstanding 200,000 The earnings per share for the current year are? a.$28.15 b.$28.50 c.$28.85 d.$0.35
Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $900,000 Preferred $5 stock, $100 par $228,000 Common stock, $8 par $319,200.00 Income before income tax was $201,600, and income taxes were $30,600 for the current year. Cash dividends paid on common stock during the current year totaled $33,516. The common stock was selling for $28 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock $ c. Price-earnings ratio d. Dividends per share of common stock $ e. Dividend yield
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 Just want to confirm. My answer is 1.64
Five Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Bonds payable, 9% $1,600,000 Preferred $5 stock, $100 par 340,000 Common stock, $8 par 115,600 Income before income tax was $360,000, and income taxes were $54,000, for the current year. Cash dividends paid on common stock during the current year totaled $104,040. The common stock was selling for s240 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield
. Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 7% $1,300,000 Preferred $10 stock, $50 par 88,000 Common stock, $10 par 598,400 Income before income tax expense was $373,100, and income taxes were $56,300 for the current year. Cash dividends paid on common stock during the current year totaled $31,715. The common stock was selling for $35 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield %
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Υ7 20Y6 20Υ5 Total assets $192,000 $173,000 $154,000 Notes payable (8% interest) 60,000 60,000 60,000 Common stock 24,000 24,000 24,000 Preferred 4% stock, $100 par 12.000 12,000 12,000 (no change during year) Retained earnings 70,415 45,870 36,000 The 20Y7 net income was $25,025, and the 20Y6 net income was $10,350. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. Round percentages to one decimal place. 20Y7 20Υ6 Return on total assets % Return on stockholders' equity Return on common stockholders' equity % b. The profitability ratios indicate that the company's profitability has Since the rate of return on total…
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,700,000 Preferred $10 stock, $50 par 154,000 Common stock, $15 par 288,750 Income before income tax expense was $489,600,and income taxes were $73,800 for the current year. Cash dividends paid on common stock during the current year totaled $92,400. The common stock was selling for $240 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio 4.6 times b. Earnings per share on common stock 19.03 x c. Price-earnings ratio 12.6 X d. Dividends per share of common stock 4.80 V e. Dividend yield 2 V %
Assume the following data for Cable Corporation and Multi-Media Incorporated. Multi-Media Incorporated Cable Corporation $ 39,800 352,000 409,000 $ 190,000 2,170,000 966,000 234,000 545,000 175,000 421,000 Net income Sales Total assets Total debt Stockholders' equity a. 1. Compute return on stockholders' equity for both firms. Note: Input your answers as a percent rounded to 2 decimal places. Cable Corporation Multi-Media, Incorporated 2. Which firm has the higher return? Return on Stockholders' Equity % %
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,700,000 Preferred $10 stock, $50 par 154,000 Common stock, $15 par 288,750 Income before income tax expense was $489,600,and income taxes were $73,800 for the current year. Cash dividends paid on common stock during the current year totaled $92,400. The common stock was selling for $240 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield % %24 %24

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The balance sheet for Quinn Corporation is shown here in market value terms. There are 12,000 shares of stock outstanding. Cash Fixed assets Total Market Value Balance Sheet $ 49,300 355,000 Equity Total $ 404,300 $ 404,300 $ 404,300