Firm R currently has $1,500,000 of debt outstanding with a before tax annual coupon of 5.2%, a constant EBIT of $2,000,000 and 450,000 shares outstanding at a market price of $28.00. The firm is considering issuing $1,000,000 of debt at a before tax cost of 7.25% and using the proceeds to repurchase stock at the new post-announcement market price. If this plan is implemented, it is expected that the required return on equity would rise to 10%. The firm's marginal tax rate is 32%..
What is the market value of the firm before the announcement of the issue of the new debt?
$15,228,000
$15,933,000
$14,100,000
$14,805,000
36.
Required information
What is the estimated value of the firm after the new debt issue?
$17,036,558
$16,282,728
$15,830,430
$15,076,600
37.
Required information
What is the estimated share price after the capital structure change?
$31.68
$32.58
$34.09
$30.17
38.
Required information
How many shares remain outstanding after the capital structure change?
416,855 shares
471,046 shares
450,203 shares
437,697 shares
In: Finance
As schools moved to the remote online training model some faculty were requested to learn new online skills. The effectivity of the training was evaluated with a “before and after” test of the teacher’s evaluation of their skills. The scale was a 10-point Likert scale and the teacher was asked to give a “pre” before and “post” after the training. A small sample of 10 teachers is in your data files at the end of this test. Use an alpha of .05. Run the proper analysis of “before and after” and answer the following questions.
Give the following:
1- Mean pre-test.
2- Variance pre-test
3- Mean post-test
4- Variance post-test
5- Number of observations
6- Number of teachers surveyed in this test
7- tStat
8- P(T<=t) one
9- Conclusion reached:
|
. . . |
|
Pre Train |
Post Train |
|
4 |
5 |
|
0 |
1 |
|
6 |
5 |
|
3 |
7 |
|
4 |
9 |
|
3 |
7 |
|
2 |
7 |
|
3 |
6 |
|
4 |
4 |
|
9 |
8 |
In: Statistics and Probability
A farmer has decided to use a new additive to grow his crops. He divided his farm into 10 plots and kept records of the corn yield (in bushels) before and after using the additive. The before (first row) and after (second row) results from the 10 different plots are shown below.
Corn Yield
Before 9 9 8 7 6 8 5 9 10 11
After 10 9 9 8 7 10 6 10 10 12
You wish to test the following hypothesis at the 1 percent level of significance.
H0= µ=0 against H1: µd > 0
What decision rule would you use?
a.) Reject H0 if test statistic is less than 2.821
b.) Reject H0 if test statistic is greater than -2.821
c.) Reject H0 if test statistic is greater than 2.821
d.) Reject H0 if test statistic is greater than -2.821 or less than 2.821
In: Statistics and Probability
Paired-/Related Samples T-test
Use it to test whether there is a difference between the two conditions(note: conditions must be RELATED-participants provide in each condition).
You are interested in the relationship satisfaction of young adults before and after they go off to college/university, which separates them from their sweetheart. You asked four couples to rate the satisfaction of their relationship (on a scale of 0-50) before leaving for school and then again after a semester. Here are the data:
Pair Before After
1 40 32
2 38 31
3 36 30
4 42 31
1. State the null and alternative hypotheses as well as your criterion:
2 .State your assumptions
3. Calculate difference scores, the sum of difference scores and the sum of difference scores squared:
4. Calculate t
5. Figure out your degrees of freedom and use this to find the critical t value
6. Reject or fail-to-reject the null hypothesis and state your conclusions.
In: Statistics and Probability
Question 4 Amy Dyken, controller at Marigold Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Marigold’s financial statements. Below is selected financial information for the fiscal year ended June 30, 2020.
Marigold Pharmaceutical Industries Selected Balance Sheet Information June 30, 2020
Long-term debt Notes payable, 10% $1,020,000
8% convertible bonds payable 5,080,000
10% bonds payable 6,110,000
Total long-term debt $12,210,000
Shareholders’ equity Preferred stock, 6% cumulative, $50 par value, 98,000 shares authorized, 24,500 shares issued and outstanding $1,225,000
Common stock, $1 par, 10,200,000 shares authorized, 1,020,000 shares issued and outstanding 1,020,000
Additional paid-in capital 3,990,000
Retained earnings 5,900,000
Total shareholders’ equity $12,135,000
The following transactions have also occurred at Marigold
. 1. Options were granted on July 1, 2019, to purchase 200,000 shares at $15 per share. Although no options were exercised during fiscal year 2020, the average price per common share during fiscal year 2020 was $20 per share.
2. Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2019.
3. The preferred stock was issued in 2019.
4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020.
5. The 1,020,000 shares of common stock were outstanding for the entire 2020 fiscal year.
6. Net income for fiscal year 2020 was $1,530,000, and the average income tax rate is 20%.
For the fiscal year ended June 30, 2020, calculate the following
for Marigold Pharmaceutical Industries. (Round answers
to 2 decimal places, e.g. $2.45.)
(a) Basic earnings per share.
| Basic earnings per share | $ |
(b) Diluted earnings per share.
| Diluted earnings per share | $ |
In: Accounting
Amy Dyken, controller at Marigold Pharmaceutical Industries, a
public company, is currently preparing the calculation for basic
and diluted earnings per share and the related disclosure for
Marigold’s financial statements. Below is selected financial
information for the fiscal year ended June 30, 2020.
|
Marigold Pharmaceutical Industries |
||
| Long-term debt | ||
| Notes payable, 11% |
$980,000 |
|
| 8% convertible bonds payable |
5,030,000 |
|
| 11% bonds payable |
6,100,000 |
|
| Total long-term debt |
$12,110,000 |
|
| Shareholders’ equity | ||
| Preferred stock, 6% cumulative, $50 par value, 98,000 shares authorized, 24,500 shares issued and outstanding |
$1,225,000 |
|
| Common stock, $1 par, 10,200,000 shares authorized, 1,020,000 shares issued and outstanding |
1,020,000 |
|
| Additional paid-in capital |
3,940,000 |
|
| Retained earnings |
6,120,000 |
|
| Total shareholders’ equity |
$12,305,000 |
|
The following transactions have also occurred at
Marigold.
| 1. | Options were granted on July 1, 2019, to purchase 220,000 shares at $14 per share. Although no options were exercised during fiscal year 2020, the average price per common share during fiscal year 2020 was $20 per share. | |
| 2. | Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2019. | |
| 3. | The preferred stock was issued in 2019. | |
| 4. | There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020. | |
| 5. | The 1,020,000 shares of common stock were outstanding for the entire 2020 fiscal year. | |
| 6. | Net income for fiscal year 2020 was $1,490,000, and the average income tax rate is 20%. |
For the fiscal year ended June 30, 2020, calculate the following
for Marigold Pharmaceutical Industries. (Round answers
to 2 decimal places, e.g. $2.45.)
(a) Basic earnings per share.
| Basic earnings per share |
(b) Diluted earnings per share.
| Diluted earnings per share |
In: Accounting
Amy Dyken, controller at Waterway Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Waterway’s financial statements. Below is selected financial information for the fiscal year ended June 30, 2020.
Waterway Pharmaceutical Industries
Selected Balance Sheet Information
June 30, 2020
Long-term debt
Notes payable, 10% $990,000
8% convertible bonds payable
5,030,000
10% bonds payable 5,880,000
Total long-term debt $11,900,000
Shareholders’ equity
Preferred stock, 5% cumulative, $50 par value, 107,000 shares
authorized, 26,750 shares issued and outstanding $1,337,500
Common stock, $1 par, 9,800,000 shares authorized, 980,000 shares
issued and outstanding 980,000
Additional paid-in capital 3,940,000
Retained earnings 6,110,000
Total shareholders’ equity $12,367,500
The following transactions have also occurred at Waterway.
1. Options were granted on July
1, 2019, to purchase 190,000 shares at $15 per share. Although no
options were exercised during fiscal year 2020, the average price
per common share during fiscal year 2020 was $20 per share.
2. Each bond was issued at face
value. The 8% convertible bonds will convert into common stock at
50 shares per $1,000 bond. The bonds are exercisable after 5 years
and were issued in fiscal year 2019.
3. The preferred stock was issued in
2019.
4. There are no preferred dividends
in arrears; however, preferred dividends were not declared in
fiscal year 2020.
5. The 980,000 shares of common
stock were outstanding for the entire 2020 fiscal year.
6. Net income for fiscal year 2020
was $1,490,000, and the average income tax rate is 20%.
For the fiscal year ended June 30, 2020, calculate the following for Waterway Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. $2.45.)
(a) Basic earnings per share.
Basic earnings per share
$ (?)
(b) Diluted earnings per share.
Diluted earnings per share
$ (?)
In: Accounting
In: Economics
In: Economics
what is the impact of Personal Data Protection Act 2010 on banking industry? and ways to manage the impact.
answer in essay
In: Finance