Year 2 Year 1 Preference share, par value P50, 10%. Ordinary share, par value P20. Share premium - ordinary share.. Retained earnings.. P100,000 P100,000 400,000 400,000 100,000 120,000 60,000 100,000 140,000 Net income. 80,000 Dividends on preference share Dividends on ordinary share Market price per share, Dec 31 10,000 10,000 50,000 40,000 21.00 28.00 Instruction: Determine the following A. Price-earnings ratio B. Dividend yield ratio C. Payout ratio D. Return of Equity E. Book value per share

Year 2 Year 1 Preference share, par value P50, 10%. Ordinary share, par value P20. Share premium - ordinary share.. Retained earnings.. P100,000 P100,000 400,000 400,000 100,000 120,000 60,000 100,000 140,000 Net income. 80,000 Dividends on preference share Dividends on ordinary share Market price per share, Dec 31 10,000 10,000 50,000 40,000 21.00 28.00 Instruction: Determine the following A. Price-earnings ratio B. Dividend yield ratio C. Payout ratio D. Return of Equity E. Book value per share

Name: Year 2Year 1Preference share, par value P50, 10%.Ordinary share, par
Uploaded: 2022-11-22T13:58:24.000Z
Channel: Bartleby
Description: Year 2Year 1Preference share, par value P50, 10%.Ordinary share, par value P20.Share premium - ordinary share..Retained earnings...P100,000400,000P100,000400,000100,000100,000140,000120,000Net income60,00010,00080,000Dividends on preference shareDiv

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

See similar textbooks

Similar questions

Problem 5 The owners' equity accounts for Alexander International are shown here: $ 40,000 335,000 Common stock ($0.50 par value) Capital surplus Retained earnings Total owners' equity 738,120 $1,113,120 a If Alexander stock currently sells for $25 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
#25 ABC Company has the following data for the year: Ordinary shares, outstanding since January 1 – 100,000 shares Share options, issued January 1, 1:1 at P 160 per share, average market price at P 200 – 12,000 pieces 8% preference shares outstanding since January1, P 100 par, 1 preference share convertible into 3 ordinary shares – 50,000 pieces 9% bonds payable issued in the previous year, P 1,000 bond is convertible into 40 ordinary shares – P 1,000,000 Net Income, 2022 – 2,500,000 Income tax rate – 30% How much is the incremental EPS for convertible preference shares? (round-off answer to the nearest centavo)
Question 10 of 17 -/1 E View Policies Current Attempt in Progress Crane Company issued 9000 shares of its $5 par value common stock having a fair value of $20 per share and 14000 shares of its $10 par value preferred stock having a fair value of $20 per share for a lump sum of $510000. How much of the proceeds would be allocated to the common stock? O $180000 O $310435 O $199565 O $206250 Save for Later Attempts: 0 of 1 used Submit Answer
Q4 Company P’s net profit for Year 1 is 4 600 000. capital structure of P comprising 3 000 000 ordinary shares and 500 000 equity-classified preference shares in issue throughout Year 1. Each preference share provides for a cumulative discretionary dividend each year of R1.20; and preference shares have no further rights to participate in dividends with ordinary shares. There are no tax effects on payment of preference dividends.Calculate the basic EPS
QUESTION 25 A firm has issued cumulative preferred stock with a $100 par value and a 12 percent annual dividend: For the past two years, the board of directors has decided not to pay a dividend At the end of the current year, the preferred stockholders must be paid prior to paying the common stockholders OA 50/share O&$12/share OC124/share OD$36/share
Q3 A 5% preferred stock at OMR 100 less cost of flotation 5% and cost of underwriting commission charges at 2%, what would be the cost of preferred stock, assume the corporate tax rate is 50%? a. 2.685% b. 5.37% c. 2.63% d. 5.15%
QUESTION 2Naruto Bakery has a capital structure consisting of:42,000 issued and paid-up ordinary shares RM105,0005,000 issued and paid-up 10% Preference shares RM15,0008% Bonds (10-year maturity) RM30,000The balance of retained earning as at 1 January 2021 was RM75,000. The market priceper unit of the company’s financial instruments are as follows:Ordinary shares : RM2.50 (last dividend paid was RM0.50; growth rate is 5%Preference shares : RM3.008% Bonds : RM890.00 (par value RM1,000)The company is considering to invest in new project worth RM80,000. The floatationcost to sell more shares and bonds are 5%. The corporate tax rate 25%.You are required to calculate (show all workings):b. The company’s cost of debt, preference share, retained earnings and newissuance of ordinary shares.
QUESTION TWO B plc has the following capital structure: K’000Ordinary shares – K0.40 5,000 Retained earnings 500 10% Preference shares at K1 1,500 10% K100 redeemable debentures 3,000 Total funds employed 10,000 The market price of the preference shares is 80n ex-div, the ordinary shares are quoted at K1.62 cum-div per share. Debenture stock is quoted at K97.5 ex-interest per K100 nominal and will be redeemable at par in exactly 7 years’ time. B plc has just declared dividend of K1,500,000 in total for all issued ordinary shares. The dividend growth rate is 4% per year forever. Company tax is 30% per year. The market rate of return is 12% and the company has an equity beta value of 1.25 Required:a) Calculate WACC based on market values. b) Discuss the implications of using a wrong WACC value in project appraisal and comment on the current level of capital gearing.
Problem 11-15 Schuss Inc. can sell preferred shares for $74 with an estimated flotation cost of $4.00. The preferred stock is anticipated to pay $10 per share in dividends. a. Compute the cost of preferred stock for Schuss Inc. (Round the final answer to 2 decimal places.) Cost of preferred stock% b. Do we need to make a tax adjustment for the issuing firm? O Yes O No
A B 1 Purchase price per share $57 2 Total commission $35 3 Dividend at year 1 $1.80 4 Dividend at second year $1.93 5 Number of shares bought 100 6 Total purchase price =B5*B1 7 Purchase price with commission =B6+B2 8 Selling price at the end of second year $59 9 Total selling price |=B8*B5 10 Commission on selling $44 11 Selling price net of commission =B9-B10 12 Total dividend in year 1 =B3*B5 13 Total dividend in year 2 =B4*B5 14 (a) Dividend yield at purchase =B12/B6 15 (b) Dividend yield at sale =B13/B9 16 (c) Total return |=B11+B12+B13-B7 17 Holding period return 18 (d) Annualized holding period yield =B16/B7 =(1+B17)^(1/2)-1
31 Data relating to the shareholders’ equity of ABC Co. during December 31 are as follows: 8% preference share, P 40,000 shares – P 4,000,000 Ordinary share, 26,000 shares – P 1,040,000 Treasury ordinary shares (1,000 shares at cost) – P 70,000 Retained Earnings – P 7,000,000 Dividends are in arrears for four years. How much is the book value per preference share assuming that preference shares are cumulative? Group of answer choices 132.50 132.00 108.00 107.50
Question 20 During 20B, Inna company had outstanding 400,000 ordinary shares and 40,000 shares of cumulative preference share capital with a P10 per share dividends. Each preference share is convertible into five ordinary shares. Inna had a P6,000,000 net loss for 20B. No dividends were paid or declared. What is the amount of basic loss per share? choices: 15.00 16.00 10.00 10.67

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS