Consider the following stock price and shares outstanding information.
| DECEMBER 31, Year 1 | DECEMBER 31, Year 2 | |||||||
Price |
Shares Outstanding |
Price |
Shares Outstanding |
|||||
| Stock K | $23 | 110,000,000 | $34 | 110,000,000 | ||||
| Stock M | 82 | 2,100,000 | 50 | 4,200,000a | ||||
| Stock R | 36 | 29,000,000 | 38 | 29,000,000 | ||||
| aStock split two-for-one during the year. | ||||||||
Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round your answers to two decimal places.
PWIYear 1:
PWIYear 2:
VWIYear 1:
VWIYear 2:
Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places.
Percentage change in PWI: %
Percentage change in VWI: %
Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places.
%
In: Finance
| Year | cost to be depreciated | depreciation exp. per year | Accumulated depreciation | net remaining undepreciated cost | |
| 1 | |||||
| 2 | |||||
| 3 | |||||
| 4 | |||||
| 5 | |||||
| 6 | |||||
| 7 | |||||
| 8 | |||||
| 9 | |||||
| 10 | |||||
Complete the following: Depreciation expense per year, accumulated depreciation year, and net remaining undepreciated cost.
Assumptions are as follows:
Cost to be depreciated: 20,000 Estimated useful life of equipment: 10 years Year
In: Finance
|
Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) |
|||||
|---|---|---|---|---|---|
| Year 2 | Year 1 | Year 2 | Year 1 | ||
| Assets | Liabilities and equity | ||||
| Current assets: | Current liabilities: | ||||
| Cash and equivalents | $1,845 | Accounts payable | $0 | $0 | |
| Accounts receivable | 844 | 675 | Accruals | 117 | 0 |
| Inventories | 2,475 | 1,980 | Notes payable | 664 | 625 |
| Total current assets | $5,625 | $4,500 | Total current liabilities | $625 | |
| Net fixed assets: | Long-term debt | 2,344 | 1,875 | ||
| Net plant and equipment | $5,500 | Total debt | $3,125 | $2,500 | |
| Common equity: | |||||
| Common stock | 6,094 | 4,875 | |||
| Retained earnings | 2,625 | ||||
| Total common equity | $9,375 | $7,500 | |||
| Total assets | $12,500 | $10,000 | Total liabilities and equity | $12,500 | $10,000 |
Given the information in the preceding balance sheet—and assuming that Cold Goose Metal Works Inc. has 50 million shares of common stock outstanding—read each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet.
Statement #1: Cold Goose’s net collection of inventory items increased by more than the firm's sales between Years 1 and 2.
This statement is , because:
The accruals balance decreased by $117 million between Years 1 and 2
Total inventories of raw materials, work-in-process, and final goods increased from $1,980 million to $2,475 million between Year 1 and Year 2
Total inventories of raw materials, work-in-process, and final goods decreased by $495 million between Year 1 and Year 2
Statement #2: In Year 2, Cold Goose Metal Works Inc. was profitable.
This statement is , because:
Cold Goose’s total assets increased between Years 1 and 2
The cash and equivalents account increased between Years 1 and 2
Cold Goose’s retained earnings account increased between the end of Years 1 and 2
Statement #3: One way to interpret the change in Cold Goose’s accounts receivable balance from Year 1 to Year 2 is that more customers purchased new items on credit rather than paying off existing credit accounts.
This statement is , because:
The change from $1,980 million to $2,475 million reflects a net accumulation of new credit sales
The $169 increase in accounts receivable means either that Year 1’s existing credit customers are not paying off their owed balances and new or existing customers are making additional purchases on credit, or that Year 1’s credit customers have repaid their owed balances and Year 2 credit sales have exceeded Year 1’s credit sales
The decrease from $844 million to $675 million implies a net decrease in accounts receivable and that more customers are paying off their receivables balances than are buying on credit
Based on your understanding of the different items reported in the balance sheet and the information they provide, which statement regarding Cold Goose Metal Works Inc.’s balance sheet is consistent with U.S. Generally Accepted Accounting Principles (GAAP)?
The company’s assets should be listed from those carrying the largest balance to those with the smallest balance.
The company’s assets should be listed in alphabetical order.
The company’s assets should be listed in the order in which they are to be converted into cash.
In: Finance
Mr tan is considering 2 potential investment projects that have similar capital requirements:
| Year 0 | year 1 | year 2 | year 3 | year 4 | |
| project A | 4,000,000 | 1,600,000 | 1,800,000 | 2,000,000 | 2,100,000 |
| Project B | 4,200,000 | 500,000 | 1,700,000 | 1,900,000 | 2,000,000 |
For project A,the company cost of capital is 14%.For project B,assessed as the riskier project of the two.,a risk adjusted cost of capital of 15% is considered appropriate.
1) calculate the NPV of the 2 projects and assess the projects using the investment appraisal technique of Net present Vale.
2)Calculate the IRR of the 2 projects and assess the projects using the investment appraisal technique of Internal rate of return.
3) Is the company cost of capital suitable in the evaluation of projects with different risks? Explain
In: Finance
A three-year old 10-year 8% semi-annual coupon bond is selling at $1,200 today. If the yield increases by 25 basis points, how much of the price change is due to
convexity of the bond? (Face Value = $1,000)
In: Finance
A three-year old 10-year 8% semi-annual coupon bond is selling at $1,200 today. If the yield increases by 25 basis points, how much of the price change is due to
convexity of the bond? (Face Value = $1,000)
In: Finance
| Category | Prior Year | Current Year |
| Accounts payable | ??? | ??? |
| Accounts receivable | 320,715 | 397,400 |
| Accruals | 40,500 | 33,750 |
| Additional paid in capital | 500,000 | 541,650 |
| Cash | 17,500 | 47,500 |
| Common Stock | 94,000 | 105,000 |
| COGS | 328,500 | 430,273.00 |
| Current portion long-term debt | 33,750 | 35,000 |
| Depreciation expense | 54,000 | 54,201.00 |
| Interest expense | 40,500 | 42,805.00 |
| Inventories | 279,000 | 288,000 |
| Long-term debt | 339,570.00 | 398,024.00 |
| Net fixed assets | 946,535 | 999,000 |
| Notes payable | 148,500 | 162,000 |
| Operating expenses (excl. depr.) | 126,000 | 162,475.00 |
| Retained earnings | 306,000 | 342,000 |
| Sales | 639,000 | 847,787.00 |
| Taxes | 24,750 | 48,472.00 |
What is the current year's entry for long-term debt on a common-sized balance sheet?
The answer is 22.98% but i dont know how to get to it, i try dividing long term debt into common sized balance but it was wrong, so can someone show me how to get to that answer? thank~
In: Finance
in 2020? _____________
In 2050? ______________
In: Accounting
| Category | Prior Year | Current Year |
| Accounts payable | ??? | ??? |
| Accounts receivable | 320,715 | 397,400 |
| Accruals | 40,500 | 33,750 |
| Additional paid in capital | 500,000 | 541,650 |
| Cash | 17,500 | 47,500 |
| Common Stock | 94,000 | 105,000 |
| COGS | 328,500 | 430,380.00 |
| Current portion long-term debt | 33,750 | 35,000 |
| Depreciation expense | 54,000 | 54,221.00 |
| Interest expense | 40,500 | 42,028.00 |
| Inventories | 279,000 | 288,000 |
| Long-term debt | 335,365.00 | 400,331.00 |
| Net fixed assets | 946,535 | 999,000 |
| Notes payable | 148,500 | 162,000 |
| Operating expenses (excl. depr.) | 126,000 | 161,395.00 |
| Retained earnings | 306,000 | 342,000 |
| Sales | 639,000 | 852,776.00 |
| Taxes | 24,750 | 48,765.00 |
In: Finance
Fey Fashions expects the following dividend pattern over the next seven years:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 |
| 1.5 | 1.62 | 1.75 | 1.89 | 2.04 | 2.2 | 2.38 |
. The company will then have a constant dividend of$2.60 forever. What is the stock's price today if an investor wants to earn
a.
16%?
b.
23%?
In: Finance