Boehm Corporation has had stable earnings growth of 7% a year for the past 10 years, and in 2019 Boehm paid dividends of $3 million on net income of $15 million. However, net income is expected to grow by 30% in 2020, and Boehm plans to invest $11.0 million in a plant expansion. This one-time unusual earnings growth won't be maintained, though, and after 2020 Boehm will return to its previous 7% earnings growth rate. Its target debt ratio is 37%. Boehm has 1 million shares of stock.
1.Its 2020 dividend payment is set to force dividends per share to grow at the long-run growth rate in earnings. Round your answer to the nearest cent.
2. It continues the 2019 dividend payout ratio. Round your answer to the nearest cent.
3. It uses a pure residual policy with all distributions in the form of dividends (37% of the $11.0 million investment is financed with debt). Round your answer to the nearest cent.
4. It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy. What will the extra dividend be? Round your answer to the nearest cent.
Show calculations please
In: Finance
Pineapples Corporation is in need of cash. It issues bonds with a $2 million face value. The bonds have a 8.48% coupon rate. The market rate is 6%. The bonds have a life of 10 years, and are compounded semiannually. Pineapples Corp. issues the bonds on 1/1/20. Please provide all journal entries that Pineapples Corp. must record during 2020 in relation to these bonds. (HINT: There are a total of three journal entries which must be made.) You may round your answers to the nearest dollar.
Show your work here !!!!
Record your FIRST of three journal entry here for 2020:
Record your SECOND of three journal entry here for 2020:
Record your THIRD journal entry here for 2020:
Additional Question (A) Related to Pineapples Corp: What is the journal entry Pineapples Corp. will record when it retires the bonds in 10 years (after/not including the final coupon payment):
Additional Question (B) Related to Pineapples Corp: Over the life of the bond, how much interest expense will Pineapples Corp. recognize? (Show your calculation in the space below for full credit)
Additional Question (C) Related to Pineapples Corp: If the coupon rate was 6% (instead of 8.48%) and all other facts remained the same, what would be the price of the bond at issuance? (Show your work or provide your explanation in the space below for full credit.)
In: Accounting
15/3 Boehm Corporation has had stable earnings growth of 6% a year for the past 10 years, and in 2019 Boehm paid dividends of $4 million on net income of $10 million. However, net income is expected to grow by 34% in 2020, and Boehm plans to invest $7.0 million in a plant expansion. This one-time unusual earnings growth won't be maintained, though, and after 2020 Boehm will return to its previous 6% earnings growth rate. Its target debt ratio is 36%. Boehm has 1 million shares of stock.
$ _______
$_______
$_______
$_______
In: Finance
Alternative Dividend Policies
Boehm Corporation has had stable earnings growth of 7% a year for the past 10 years, and in 2019 Boehm paid dividends of $2 million on net income of $5 million. However, net income is expected to grow by 30% in 2020, and Boehm plans to invest $3.5 million in a plant expansion. This one-time unusual earnings growth won't be maintained, though, and after 2020 Boehm will return to its previous 7% earnings growth rate. Its target debt ratio is 33%. Boehm has 1 million shares of stock.
$
$
$
$
In: Finance
(20.44) Cola makers test new recipes for loss of sweetness during storage. Trained tasters rate the sweetness before and after storage. Here are the sweetness losses ( sweetness before storage minus sweetness after storage) found by 10 tasters for one new cola recipe:
2 0.3 0.6 2.1 -0.4 2.2 -1.3 1.2 1.1 2.2
Take the data from these 10 carefully trained tasters as an SRS from a large population of all trained tasters. Is there evidence at the 5% level that the cola lost sweetness? If the cola has not lost sweetness, the ratings after should be the same as before it was stored.
The test statisic is t = ___ (±0.001)
No Yes .
There is evidence that cytotoxic T lymphocytes (T cells) participate in controlling tumor growth and that they can be harnessed to use the body's immune system to treat cancer. One study investigated the use of a T cell-engaging antibody, blinatumomab, to recruit T cells to control tumor growth. The data below are T cell counts (1000 per microliter) at baseline (beginning of the study) and after 20 days on blinatumomab for 6 subjects in the study. The difference (after 20 days minus baseline) is the response variable.
Baseline 0.04 0.02 0 0.02 0.31 0.29
After 20 days 0.18 0.27 1.2 0.05 1.02 0.34
Difference 0.14 0.25 1.2 0.03 0.71 0.05
Do the data give evidence at the 4 % level that the mean count of T cells is higher after 20 days on blinatumomab? The test statistic is
t =____ (±0.001)
Yes No
can you please show how to get the T on a TI-84.
In: Statistics and Probability
15 patients have been examined after intake for Glucose levels of a drug. If mean difference= 2.55 and standard deviation difference= 2.8 of glucose level, was observed between before and after intake of this drug.
Does that prove the new drug is effective in the treatment of diabetes at 95% CL? please explain
In: Statistics and Probability
1. A toy car of mass 2.0 kg moving to the right with a speed of 8.0 m/s collides perfectly inelastically with another toy car of mass 3.0 kg that is moving to the left with a speed of 2.0 m/s. Find the magnitude and the direction of the velocity of the system Immediately after the collision.
2. In an elastic collision of two objects,
a. momentum is not conserved.
b. momentum is conserved, and the kinetic energy after the collision is less than its value before the collision.
c. momentum is conserved, and the kinetic energy after the collision is the same as the kinetic energy before the collision
d. the kinetic energy of the system after the collision depends on the masses of the objects
3. Object 1 has more kinetic energy than Object 2. How do the magnitudes of their momenta compare?
a. P1=P2
b. P1>P2
c. p1 ≥ p2
d. not enough information given to tell
In: Physics
Lear, Inc. has $1,350,000 in current assets, $570,000 of which
are considered permanent current assets. In addition, the firm has
$820,000 invested in capital assets.
a. Lear wishes to finance all capital assets and
half of its permanent current assets with long-term financing
costing 10 percent. Short-term financing currently costs 5 percent.
Lear’s earnings before interest and taxes are $420,000. Determine
Lear’s earnings after taxes under this financing plan. The tax rate
is 30 percent.
Earnings after taxes $
b. As an alternative, Lear might wish to finance all capital assets and permanent current assets plus half of its temporary current assets with long-term financing. The same interest rates apply as in part a. Earnings before interest and taxes will be $420,000. What will be Lear’s earnings after taxes? The tax rate is 30 percent.
Earnings after taxes $
c. Not available in Connect.
In: Finance
Effect of Stock Split
Gino's Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Midwest. Gino's Restaurant Corporation, which had 18,000 shares of common stock outstanding, declared a 3-for-1 stock split.
a. What will be the number of shares
outstanding after the split?
shares
b. If the common stock had a market price of
$144 per share before the stock split, what would be an approximate
market price per share after the split?
$ per share
A corporation, which had 37,000 shares of common stock outstanding, declared a 3-for-1 stock split.
(a) What will be the number of shares
outstanding after the split?
shares
(b) If the common stock had a market price of
$123 per share before the stock split, what would be an approximate
market price per share after the split?
$ per share
(c) Is a journal entry required for a stock
split?
In: Accounting
It is desired to compare the after-tax economics of two mutually exclusive alternatives with the following before-tax data for a study period (planning horizon) of 4 years:
Semiautomatic Machine Automatic Machine
First cost $100,000 $150,000
Useful life 4 years 5 years
Market value at end of useful life $0 $0
Annual before-tax cash disbursements $50,000 $15,000
Annual cash revenues $110,000 $90,000
MARR (after tax) = 15% p.a.
Study Period = 4 years
Both alternatives are to be depreciated using straight-line depreciation over the life of the machine. It is assumed that the automatic machine can be sold at the book value after 4 years,
I.e. 20% of the first cost of the machine after 4 years of depreciation.
A 40% tax rate is assumed.
Which alternative is preferred on the basis of net present value?
Can i have a detailed answer, please! And also not in excel.
In: Finance