|
A stock is currently trading for $33. The company has a price–earnings multiple of 10. There are 100 million shares outstanding. Your model indicates that the stock is actually worth $38. The company announces that it will use $350 million to repurchase shares.
|
In: Finance
Problem 5.4 (LO1, 2) Variable and Full Costing: Earnings Management with Full Costing; Changes in Production and Sales Sampson Steel produces high-quality worktables. The company has been in operation for three years, and sales have declined each year due to increased competition. The following information is available:
|
2020 |
2021 |
2022 |
Total |
|
|
Units sold |
10,000 |
9,000 |
8,000 |
27,000 |
|
Units produced |
10,000 |
10,000 |
7,000 |
27,000 |
|
Fixed production costs |
$350,000 |
$350,000 |
$350,000 |
|
|
Variable production costs per unit |
$100 |
$100 |
$100 |
|
|
Selling price per unit |
$350 |
$350 |
$350 |
|
|
Fixed selling and administrative expenses |
$300,000 |
$300,000 |
$300,000 |
Required
In: Accounting
A stock is currently trading for $38. The company has a price–earnings multiple of 10. There are 100 million shares outstanding. Your model indicates that the stock is actually worth $28. The company announces that it will use $350 million to repurchase shares.
After the repurchase, what is the value of the stock, according to your model? Do not round intermediate calculations. Round your answer to the nearest cent.
$
After the repurchase, what is the actual price–earnings multiple of the stock? Do not round intermediate calculations. Round your answer to two decimal places.
If the company had used the $350 million to pay a cash dividend instead of doing a repurchase, how would the value of the stock have changed, according to your model? Do not round intermediate calculations. Round your answer to the nearest cent.
The market value of the stock is now $ .
If the company had used the $350 million to pay a cash dividend instead of doing a repurchase, what would be the actual price–earnings multiple after the dividend? Do not round intermediate calculations. Round your answer to two decimal places.
In: Finance
| The following were selected from among the transactions completed by Calworks Company | ||||||||||||
| during April of the current year: | ||||||||||||
| Apr. | 2. | Purchased merchandise on account from Prescott Co., $42,000, terms FOB | ||||||||||
| destination, 2/10, n/30. | ||||||||||||
| 3. | Paid advertising expense, $50. | |||||||||||
| 4. | Sold merchandise for cash, $18,200. | |||||||||||
| 5. | Purchased merchandise on account from Stafford Co., $21,300, terms FOB | |||||||||||
| shipping point, 2/10, n/30. | ||||||||||||
| 6. | Returned $6,000 merchandise purchased on April 3 from Prescott Co. | |||||||||||
| 7. | Paid weekly salaries of employees, $150. | |||||||||||
| 9. | Paid utility bills, $30. | |||||||||||
| 10. | Merchandise sold for cash, $1,500 was returned. Paid cash to the customer. | |||||||||||
| 11. | Sold merchandise on account to Logan Co., $8,500, terms 1/10, n/30. | |||||||||||
| 12. | Purchased store supplies for cash, $100. | |||||||||||
| 13. | Paid Prescott Co. for account due less discount. | |||||||||||
| 14. | Sold merchandise on account to Salem Co., $60,000. | |||||||||||
| 14. | Paid weekly salaries of employees, $150. | |||||||||||
| 15. | Paid Stafford Co., on account less discount. | |||||||||||
| 17. | Paid insurance expense for April, $100. | |||||||||||
| 21. | Received cash on account from Logan Co., less discount. | |||||||||||
| 23. | Received bill for service and maintenance to be paid in May, 75. | |||||||||||
| 24. | Sold merchandise on account to Alma Co., $9,200, terms, 1/10, n/30. | |||||||||||
| 27. | The owner withdrew $600 cash for personal expenses. | |||||||||||
| 30. | Received merchandise returned by Alma Co., from sale on April 24, $1,200. | |||||||||||
Required :
Journalized the above transactions of Calworks Company. Use the periodic inventory system.
In: Accounting
For the following reaction Kc = 2.20 ✕ 102 at 74°C. CO(g) + Cl2(g) ↔ COCl2(g) Find the equilibrium concentrations of all chemical species starting with [CO] = 0.105 M and [Cl2] = 0.105 M.
[CO] = M
[Cl2] = M
[COCl2] = M
In: Chemistry
For the following reaction Kc = 2.20 ✕ 102
at 74°C.
CO(g) + Cl2(g) ↔
COCl2(g)
Find the equilibrium concentrations of all chemical species
starting with [CO] = 0.179 M and [Cl2] = 0.287 M.
[CO] = M
[Cl2] = M
[COCl2] = M
In: Chemistry
When pure carbon is burnt in air some of it is oxidized to CO2 and some to CO. If the molar ratio of N2 to O2 is 7.18 and the molar ratio of CO to CO2 is 2, what is the percentage excess air used? Exit gases contain only N2, O2, CO and CO2.
In: Chemistry
When pure carbon is burnt in air some of it is oxidized to C02 and some to CO. If the molar ratio of N2 to 02 is 7.18 and the molar ratio of CO to C02 is 2, what is the percentage excess air used? Exit gases contain only N2, O2, CO and C02.
In: Chemistry
What are the clear differences in reduction of [Co(NH3)5MoO4] + and [Co(NH3)5CrO4] + by L-ascorbic acid? Would you expect L-ascorbic acid to reduce the Co(III), Cr(VI), and Mo(VI) metal centers when you discuss this interesting chemistry?
In: Chemistry
In: Chemistry