How many stocks are outstanding for the Pier 1 Imports company? Do they have any preferred...

How many stocks are outstanding for the Pier 1 Imports company? Do they have any preferred stock? What is the latest news regarding the stock? How is it doing in regards to the market, what is the current price? How has the stock price changed during this year (pre-and during COVID 19)? What is your recommendation in regard to this stock (Buy/Sell) and why?

Solutions

Expert Solution

Answer: Pier 1 Imports company- This is U.S company that is into retail business of fragrant candles, furniture lanterns, rugs, curtains, mirrors, well decor, dinnerware, wall decoration and handmande gifts etc.

Outstanding shares- 4.26 Million

Preferred stocks- Company did not issue preferred stocks

Latest news- Company is facing liquidity problem and it winding down its business operation (news as on May 20). Company has filed for motion seeking bankruptcy. Once the stores will repoen, company will sell its inventory.

How is it doing with respect to market- It is not doing good with respect to market because its share price has come down from $15 to $.28 in last one year. Share price is continuously falling irrespective of the market.

Current price- $.28

Price change between Feb.15 to June 12 (During COVID 19)- Share price was at $3.56 on Feb. 14, then came down to $1.03 on Feb. 19 and then came down and now it is trading at $.28, it is because of COVID 19.

Recommendations- I will not recommend this stock because it has lost its value. It is not fundamentally and technically good. Investing into this stock is waste of money. This company is winding down its business operations so. If you have the stock, you can sell it.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

True/False 1. Common stocks and preferred stocks are the same except preferred stocks do not have...

True/False 1. Common stocks and preferred stocks are the same except preferred stocks do not have voting rights. 2. Risk is defined as the possibility that you will lose money when buying an investment.

How to calculate the component cost of preferred stocks for a firm? Is cost of preferred...

How to calculate the component cost of preferred stocks for a firm? Is cost of preferred stock in a company greater than its component cost of debt, why?

Garden Tools Inc. has bonds, preferred stock, and common stocks outstanding. The number of securities outstanding,...

Garden Tools Inc. has bonds, preferred stock, and common stocks outstanding. The number of securities outstanding, the current market price, and the required rate of return for these securities are stated in the table below. The firm’s tax rate is 35%. Calculate the firm's WACC adjusted for taxes using the market information in the table. Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box) The Number of Securities Outstanding Selling price The...

How many bonds do Starbucks have outstanding, and what country/ countries were they issued in? What...

How many bonds do Starbucks have outstanding, and what country/ countries were they issued in? What are the yields these bonds pay?

There are many way to run a company. Many of us have seen outstanding leaders, but...

There are many way to run a company. Many of us have seen outstanding leaders, but what makes those individuals successful in their positions. In these videos, Stanford professor Bob Sutton provides insight into the traits of those successful leaders and managers, and details the worst habits of those who we would like to forget. Please view the following videos from Stanford University's Entrepreneurship Corner: 1. Hallmarks of Great Bosses; Bob Sutton, Stanford University [4 mins] 2. Power Poisoning; Bob...

Company XYZ has a capital structure that consists of debt, common stocks and preferred stocks. The...

Company XYZ has a capital structure that consists of debt, common stocks and preferred stocks. The company has issued 15-year, 12% semiannual coupon bond sells for $1,153.72. Its stock currently pays a $2 dividend per share and the stock’s price is currently $24.75. The company’s ROE is 15% and retaining 60% of its earnings.its tax rate is 35%; The weight of debt is 30%, weight of common equity is 40% and weight of preferred equity is 10%. The price of...

Apple, Inc. had 2019 Net Income (earnings) of $58,424,000,000. They do not have any preferred stock...

Apple, Inc. had 2019 Net Income (earnings) of $58,424,000,000. They do not have any preferred stock issued or outstanding, but they currently have 18,471,336,000 shares of common stock outstanding. Calculate Apple's 2019 Earnings per Share (EPS). Enter numbers only and round your answer to two decimal places.

5. A local Bahamian firm has the following preferred stocks outstanding: PFD A: $40 annual dividend;...

5. A local Bahamian firm has the following preferred stocks outstanding: PFD A: $40 annual dividend; $1,000 par value; no maturity PFD B: $95 annual dividend; $1,000 par value; maturity after twenty-five years If comparable yields are 9 percent, what should be the price of each preferred stock? Explain your answer. (10 points)

1. Why bonds and preferred stocks are considered fixed-income securities? 2. Why do corporations prefer a...

1. Why bonds and preferred stocks are considered fixed-income securities? 2. Why do corporations prefer a high-bond rating to a lower-bond rating on their debt securities? 3. Why is valuing common stock more difficult and less precise than valuing bonds? 4. How does a firm’s future growth rate affect common stock value?

1.What valuation techniques do we adopt for bonds and preferred/common stocks? 2. Understand the pros and...

1.What valuation techniques do we adopt for bonds and preferred/common stocks? 2. Understand the pros and cons of various forms of financing (bonds/preferred stock/common stock)

Subjects