On January 2, you sold short 1,000 shares of ABC stock at $27 per share. On March 2, a dividend of $1 per share was paid. On April 2, covered the short sale by buying the stock at a price of $25.75 per share. You paid $20 in commissions for the roundtrip ($10 to short, $10 to cover). Assuming you have no other positions, what is the value of your account on April 2? Present your answer rounded to the nearest cent in this format, $123.45
In: Finance
In: Finance
| Graffiti Advertising, Inc., reported the following financial statements for the last two years. |
| 2019 Income Statement | ||
| Sales | $ | 573,200 |
| Costs of goods sold | 273,945 | |
| Selling & administrative | 124,717 | |
| Depreciation | 54,560 | |
| EBIT | $ | 119,978 |
| Interest | 19,648 | |
| EBT | $ | 100,330 |
| Taxes | 40,132 | |
| Net income | $ | 60,198 |
| Dividends | $ | 11,200 |
| Addition to retained earnings | $ | 48,998 |
| GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2018 |
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| Cash | $ | 13,480 | Accounts payable | $ | 9,488 |
| Accounts receivable | 18,978 | Notes payable | 14,492 | ||
| Inventory | 13,810 | ||||
| Current liabilities | $ | 23,980 | |||
| Current assets | $ | 46,268 | Long-term debt | $ | 135,520 |
| Net fixed assets | $ | 344,906 | Owners' equity | $ | 231,674 |
| Total assets | $ | 391,174 | Total liabilities and owners’ equity | $ | 391,174 |
| GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2019 |
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| Cash | $ | 14,466 | Accounts payable | $ | 10,528 |
| Accounts receivable | 21,083 | Notes payable | 16,482 | ||
| Inventory | 22,770 | ||||
| Current liabilities | $ | 27,010 | |||
| Current assets | $ | 58,319 | Long-term debt | $ | 153,600 |
| Net fixed assets | $ | 406,295 | Owners' equity | $ | 284,004 |
| Total assets | $ | 464,614 | Total liabilities and owners’ equity | $ | 464,614 |
| a. | Calculate the operating cash flow. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
| b. | Calculate the change in net working capital. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
| c. | Calculate the net capital spending. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
| d. | Calculate the cash flow from assets. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
| e. | Calculate the cash flow to creditors. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
| f. | Calculate the cash flow to stockholders. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
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In: Finance
| 2003 | 2004 | 2005 | 2006 | |
| Cash and Short Term Investments | 51.421 | 58.054 | 60.651 | 72.122 |
| Accounts Receivable | 12.394 | 17.256 | 25.158 | 30.919 |
| Inventory | 4.350 | 5.398 | 7.358 | 8.714 |
| Prepaid Expenses and Deferred Taxes | 3.887 | 3.905 | 9.607 | 15.863 |
| Current Assets | 72.052 | 84.613 | 102.774 | 127.618 |
| Property, Plant and Equipment | 146.362 | 201.725 | 268.809 | 345.977 |
| Goodwill and Other Assets | 38.421 | 38.334 | 66.084 | 69.014 |
| Total Assets | 256.835 | 324.672 | 437.667 | 542.609 |
| Accounts Payable | 8.072 | 5.840 | 4.422 | 5.800 |
| Acrued Expenses and Deferred Revenue | 37.571 | 49.865 | 82.443 | 103.810 |
| Current Liabilities | 45.643 | 55.705 | 86.865 | 109.610 |
| Deferred Rent and Other Liabilities | 13.616 | 27.604 | 33.824 | 35.333 |
| Total Liabilities | 59.259 | 83.309 | 120.689 | 144.943 |
| Equity | 197.576 | 241.363 | 316.978 | 397.666 |
| Total Liabilities and Equity | 256.835 | 324.672 | 437.667 | 542.609 |
Develop a 5 year Financial Forecast
In: Finance
In: Finance
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The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,375,000, $135,000 in the common stock account, and $2,600,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed long-term debt of $1,530,000, $145,000 in the common stock account and $2,900,000 in the additional paid-in surplus account. The 2019 income statement showed an interest expense of $91,500 and the company paid out $140,000 in cash dividends during 2019. The firm’s net capital spending for 2019 was $910,000, and the firm reduced its net working capital investment by $120,000. |
|
What was the firm's 2019 operating cash flow, or OCF? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) |
|
In: Finance
In: Finance
Here are simplified financial statements for Watervan Corporation:
| INCOME STATEMENT | ||
| (Figures in $ millions) | ||
| Net sales | $ |
888.00 |
| Cost of goods sold |
748.00 |
|
| Depreciation |
38.00 |
|
| Earnings before interest and taxes (EBIT) | $ |
102.00 |
| Interest expense |
19.00 |
|
| Income before tax | $ |
83.00 |
| Taxes |
29.05 |
|
| Net income | $ |
53.95 |
| BALANCE SHEET | |||||||
| (Figures in $ millions) | |||||||
| End of Year | Start of Year | ||||||
| Assets | |||||||
| Current assets | $ |
376 |
$ |
326 |
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| Long-term assets |
272 |
229 |
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| Total assets | $ |
648 |
$ |
555 |
|||
| Liabilities and shareholders’ equity | |||||||
| Current liabilities | $ |
201 |
$ |
164 |
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| Long-term debt |
115 |
128 |
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| Shareholders’ equity |
332 |
263 |
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| Total liabilities and shareholders’ equity | $ |
648 |
$ |
555 |
|||
The company’s cost of capital is 8%.
a. Calculate Watervan’s economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
b. What is the company’s return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
c. What is its return on equity? (Use start-of-year rather than average equity.) (Enter your answer as a percent rounded to 2 decimal places.)
In: Finance
Suppose the prices of one-year, two-year, and three-year zero
coupon bonds each with a par value of $100 are $90,$80, and $70,
respectively. Determine the arbitrage-free price of the
annuity
In: Finance
What kind of financial decision making models your company use in its capital budgeting process? Have these decisions contributed to the company’s success? Why or why not?
the company is WestJet
In: Finance
Cooperton Mining just announced it will cut its dividend from $ 4.14 to $ 2.27 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expected to grow at a 3.2 % rate, and its share price was $ 48.86. With the planned expansion, Cooperton's dividends are expected to grow at a 4.7 % rate. What share price would you expect after the announcement? (Assume that the new expansion does not change Cooperton's risk.) Is the expansion a good investment?
The new price for Cooperton's stock will be [...]?
In: Finance
Bond price: Nanotech Ltd has a bond issue maturing in seven years and paying a coupon rate of 11.39 percent (semiannual payments). The company wants to retire a portion of the issue by buying the securities in the open market. If it can refinance at 10.73 percent, Nanotech will pay $_______________ to buy back its current outstanding bonds?
In: Finance
Realised yield: Josh Kavern bought 10-year, 10.76 percent coupon bonds issued by the Australian Government three years ago at $913.44. If he sells these bonds, which have a face value of $1,000, at the current price of $809.05, the realised yield on the bond is ________________% (Assume annual coupons on similar coupon-paying bonds).
In: Finance
|
n addition to common-size financial statements, common-base year financial statements are often used. Common-base year financial statements are constructed by dividing the current year account value by the base year account value. Thus, the result shows the growth rate in the account. |
|
Construct the common-size balance sheet and common-base year balance sheet for the company. Use 2018 as the base year. (Do not round intermediate calculations. Enter your common-size answers as a percent and your common base year answers as a times. Round your common size answers to 2 decimal places, e.g., 32.16 and common-base year answers to 4 decimal places, e.g., 32.1616.) |
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In: Finance
| Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. |
| JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets |
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| Assets | Liabilities and Owners’ Equity | |||||||||||||||
| 2017 | 2018 | 2017 | 2018 | |||||||||||||
| Current assets | Current liabilities | |||||||||||||||
| Cash | $ | 7,950 | $ | 11,800 | Accounts payable | $ | 40,500 | $ | 45,800 | |||||||
| Accounts receivable | 23,550 | 29,000 | Notes payable | 14,850 | 20,800 | |||||||||||
| Inventory | 36,750 | 47,000 | ||||||||||||||
| Total | $ | 68,250 | $ | 87,800 | Total | $ | 55,350 | $ | 66,600 | |||||||
| Long-term debt | $ | 30,000 | $ | 24,000 | ||||||||||||
| Owners’ equity | ||||||||||||||||
| Common stock and paid-in surplus | $ | 42,000 | $ | 42,000 | ||||||||||||
| Retained earnings | 172,650 | 267,400 | ||||||||||||||
| Net plant and equipment | $ | 231,750 | $ | 312,200 | Total | $ | 214,650 | $ | 309,400 | |||||||
| Total assets | $ | 300,000 | $ | 400,000 | Total liabilities and owners’ equity | $ | 300,000 | $ | 400,000 | |||||||
|
Prepare the 2018 combined common-size, common-base year balance sheet for Just Dew It. (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) |
| 2017 | 2018 | ||
| Assets | |||
| Cash | 7,950 | 11,800 | |
| Accounts receivable | 23,550 | 29,000 | |
| Inventory | 36,750 | 47,000 | |
| Total | 68,250 | 87,800 | |
| Fixed Assets | |||
| Net plant and equipment | 231,750 | 312,200 | |
| Total Assets | 300,000 | 400,000 | 1.0000 |
| Liabilities and Owners' Equity | |||
| Current liabilities | |||
| Accounts payable | 40,500 | 45,800 | |
| Notes payable | 14,850 | 20,850 | |
| Total | 55,350 | 66,000 | |
| Long-term debt | 30000 | 24,000 | |
| Owners' equity | |||
| Common stock and paid-in surplus | 42,000 | 42,000 | |
| Accumulated retained earnings | 172,650 | 267,400 | |
| Total | 214,650 | 309,400 | |
| Total liabilities and owner's equity | 300,000 | 400,000 | 1.0000 |
In: Finance