Accounting Information Systems
11th Edition
ISBN: 9780357156032
Author: Ulric J. Gelinas; Richard B. Dull; Patrick Wheeler
Publisher: Cengage Limited
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Chapter 9, Problem 6DQ
Summary Introduction
To describe: The situation where Person X experienced or employed controls.
Introduction:
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No Excel. I need to see the work or I will not understand how the problem is solved.
The Schnuz Corporation has a net income of $21 million and 5 million shares outstanding. Its common stock is currently selling for $49 per share. The company plans to sell common stock to set up a new cat food manufacturing plant with a net cost of $23,800,000. The plant will not produce a profit for one year, and then it is expected to earn a 14 percent return on the investment. Chlo Incorporated, an investment banking firm, plans to sell the issue to the public for $45 per share with a spread of 3.5 percent.
a. How many shares of stock must be sold to net $23,800,000? (Note: No out-of-pocket costs should be considered in this problem.)
b. What are the earnings per share and the price-earnings ratio before the issue (based on a stock price of $49)? What will be the price per share immediately after the sale of stock if the P/E stays constant?
c. Compute the EPS and the price (if the P/E stays…
Chapter 9 Solutions
Accounting Information Systems
Ch. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - How could the control matrix be used to recommend...Ch. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 7RQCh. 9 - Name and explain four different types of batch...Ch. 9 - Prob. 9RQCh. 9 - Prob. 10RQ
Ch. 9 - Prob. 1DQCh. 9 - Explain why input controls are so important....Ch. 9 - Describe the similarities and differences between...Ch. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQCh. 9 - Prob. 11DQCh. 9 - The following is a list of six control plans from...Ch. 9 - Prob. 2SPCh. 9 - Figure 9.10 lists 10 control plans from this...Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6P
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