For the following three stocks Wells Fargo, Bank of America, and Citi. THe benchmark is DJUSFN ( Dow Jones U.S. Financials Index)
1a. Calculate the holding period return for each stock from the viewpoint of an investor who purchased them at the closing price on Monday 3/16/20 and held them until the closing of the market on Wednesday 4/15/2020. If you need to review this calculation, refer to the Week 1 notes. If you had initially invested $10,000 in each of the three stocks, how much would your portfolio be worth at the end of your holding period? 1b. Repeat the calculations in 1a. for your benchmark. (Holding period return and ending value of a $10,000 initial investment.) 2. Discuss reasons for the differences in results for 1a. and 1b. In retrospect, was your benchmark a reasonable one? Why or why not?
In: Finance
Casio Company has 30,000 shares of $1 par common stock issued and outstanding. The company also has 5,000 shares of $100 par 5% cumulative preferred stock outstanding. The company did not pay the preferred dividends in 2017, 2018 and 2019. On December 1, 2020, the company’s board of directors declared that $200,000 will be paid as dividend on January 17, 2021. What amount of dividends would common stockholders earn? *
a) $200,000
b) $150,000
c) $125,000
d) $100,000
In: Accounting
the company is rite aid 10-k filing of 2020 answers come from the filing
1. Briefly describe your company's investments and intangible
assets.
2. Does your company list "Other Assets?" If so, what items are
classified in this category?
3. Comment on any significant changes in individual assets or
liabilities.
4. Does your company have any long-term liabilities? If so, state
the largest long-term liability and when it is due?
In: Accounting
Daniel’s Delivery Company and Sandra’s Express Delivery exchanged delivery trucks on January 1, 2020. Daniel’s truck cost 18,000. It has accumulated depreciation of $15,000 and a fair market value of $5,000. Sandra’s truck cost $10,000. It has accumulated depreciation of $8,000 and a fair market value of $5,000. Daniel’s Delivery Company paid Sandra’s Express Delivery $2,000 for this transaction. The transaction has commercial substance.
In: Accounting
ABC Company reported the following information for 2019: Sales ............................... 14,000 units Margin .............................. 25% Variable cost per unit .............. $8.80 Average operating assets ............ $550,000 Return on investment ................ 14% Minimum required rate of return ..... 9% Management of ABC Company is beginning to budget for 2020 and would like answers to some what-if scenarios. Calculate the number of units ABC Company needed to sell in 2019 in order for its residual income to be 204% larger than what was reported.
In: Accounting
Ayayai Company has the following securities in its portfolio on
December 31, 2020. None of these investments are accounted for
under the equity method.
|
Investments |
Cost |
Fair Value |
||
| 1,500 shares of Gordon, Inc., Common | $72,500 | $68,500 | ||
| 5,000 shares of Wallace Corp., Common | 176,300 | 171,700 | ||
| 400 shares of Martin, Inc., Preferred | 63,300 | 64,800 | ||
| $312,100 | $305,000 |
All of the securities were purchased in 2020.
In 2021, Ayayai completed the following securities
transactions.
| March 1 | Sold the 1,500 shares of Gordon, Inc., Common, @ $45 less fees of $1,200. | |
| April 1 | Bought 700 shares of Earnhart Corp., Common, @ $75 plus fees of $1,300. |
Ayayai’s portfolio of equity securities appeared as follows on
December 31, 2021.
|
Investments |
Cost |
Fair Value |
||
| 5,000 shares of Wallace Corp., Common | $176,300 | $171,700 | ||
| 700 shares of Earnhart Corp., Common | 53,800 | 50,100 | ||
| 400 shares of Martin, Inc., Preferred | 63,300 | 61,300 | ||
| $293,400 | $283,100 |
Prepare the general journal entries for Ayayai Company
for:
| (a) | The 2020 adjusting entry. | |
| (b) | The sale of the Gordon stock. | |
| (c) | The purchase of the Earnhart stock. | |
| (d) | The 2021 adjusting entry for the trading portfolio. |
In: Accounting
Ayayai Company has the following securities in its portfolio on
December 31, 2020. None of these investments are accounted for
under the equity method.
|
Investments |
Cost |
Fair Value |
||
| 1,500 shares of Gordon, Inc., Common | $72,500 | $68,500 | ||
| 5,000 shares of Wallace Corp., Common | 176,300 | 171,700 | ||
| 400 shares of Martin, Inc., Preferred | 63,300 | 64,800 | ||
| $312,100 | $305,000 |
All of the securities were purchased in 2020.
In 2021, Ayayai completed the following securities
transactions.
| March 1 | Sold the 1,500 shares of Gordon, Inc., Common, @ $45 less fees of $1,200. | |
| April 1 | Bought 700 shares of Earnhart Corp., Common, @ $75 plus fees of $1,300. |
Ayayai’s portfolio of equity securities appeared as follows on
December 31, 2021.
|
Investments |
Cost |
Fair Value |
||
| 5,000 shares of Wallace Corp., Common | $176,300 | $171,700 | ||
| 700 shares of Earnhart Corp., Common | 53,800 | 50,100 | ||
| 400 shares of Martin, Inc., Preferred | 63,300 | 61,300 | ||
| $293,400 | $283,100 |
Prepare the general journal entries for Ayayai Company
for:
| (a) | The 2020 adjusting entry. | |
| (b) | The sale of the Gordon stock. | |
| (c) | The purchase of the Earnhart stock. | |
| (d) | The 2021 adjusting entry for the trading portfolio. |
In: Accounting
On July 1, 2018, the Churab Company paid $190,000 in return for a 5% interest (9,500 shares) in the UNCY Corporation’s common stock. On December 21, 2018, UNCY paid all of its stockholders a cash dividend of $1.00 a share. On December 31, 2018, UNCY’s common stock had a market value of $35 a share. On August 31, 2019, UNCY declared a 3-for-1 stock split of its common stock. On November 30, 2019, UNCY issued 100,000 shares of preferred stock that would be convertible, at the option of its stockholders, into 60,000 shares of common stock no earlier than 2022. On December 31, 2019, UNCY’s common stock had a market value of $32 a share. On February 1, 2020, Churab sold 4,000 shares of its UNCY stock for $68 a share. On December 21, 2020, UNCY paid all of its stockholders a cash dividend of $1.00 a share. On December 31, 2020, UNCY’s common stock had a market value of $70 a share. Provide all of the journal entries that the Churab Company would make for the investment activity described above.
Note: this is different in the previous one, please do not copy and paste the answer because it will not match
In: Accounting
Ayayai Company has the following securities in its portfolio on
December 31, 2020. None of these investments are accounted for
under the equity method.
|
Investments |
Cost |
Fair Value |
||
| 1,500 shares of Gordon, Inc., Common | $76,400 | $72,200 | ||
| 5,000 shares of Wallace Corp., Common | 184,100 | 179,300 | ||
| 400 shares of Martin, Inc., Preferred | 56,200 | 57,800 | ||
| $316,700 | $309,300 |
All of the securities were purchased in 2020.
In 2021, Ayayai completed the following securities
transactions.
| March 1 | Sold the 1,500 shares of Gordon, Inc., Common, @ $45 less fees of $1,200. | |
| April 1 | Bought 700 shares of Earnhart Corp., Common, @ $75 plus fees of $1,300. |
Ayayai’s portfolio of equity securities appeared as follows on
December 31, 2021.
|
Investments |
Cost |
Fair Value |
||
| 5,000 shares of Wallace Corp., Common | $184,100 | $179,300 | ||
| 700 shares of Earnhart Corp., Common | 53,800 | 50,200 | ||
| 400 shares of Martin, Inc., Preferred | 56,200 | 54,400 | ||
| $294,100 | $283,900 |
Prepare the general journal entries for Ayayai Company
for:
| (a) | The 2020 adjusting entry. | |
| (b) | The sale of the Gordon stock. | |
| (c) | The purchase of the Earnhart stock. | |
| (d) | The 2021 adjusting entry for the trading portfolio. |
In: Accounting
Nabor Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public? offering, managers at Nabor have decided to make their own estimate of the? firm's common stock value. The? firm's CFO has gathered data for performing the valuation using the free cash flow valuation model.
The? firm's weighted average cost of capital is 15 % and it has $1,830,000 of debt at market value and $370,000 of preferred stock at its assumed market value. The estimated free cash flows over the next 5? years, 2016 through? 2020, are given in the? table. Beyond 2020 to? infinity, the firm expects its free cash flow to grow by 5 % annually.
|
2016 |
?$280,000 |
|
2017 |
?$320,000 |
|
2018 |
?$360,000 |
|
2019 |
?$430,000 |
|
2020 |
$470,000 |
a.??Estimate the value of Nabor? Industries' entire company by using the free cash flow valuation model.
b.??Use your finding in part a?, along with the data provided? above, to find Nabor? Industries' common stock value.
c.??If the firm plans to issue 200,000 shares of common? stock, what is its estimated value per? share?
In: Finance