Major Communications Ltd., a publicly traded company that specializes in data capture, has been in operation for several years. On October 1, 2019, it had 10 million common shares authorized and 1,570,000 shares issued at an average value of $27 per share. As well, there were 1 million preferred shares authorized, with 220,000 of them issued at $14 per share. During the fiscal year ended September 30, 2020, the company generated net income after taxes of $25,380,000 and other comprehensive loss of $4,550,000. On October 1, 2019, the balance in Retained Earnings was $19,760,000 and the balance in Accumulated Other Comprehensive Income was $940,000. The preferred shares pay an annual dividend of $1.30. During the fiscal year 2020, the following transactions affected shareholders’ equity:

1. On November 1, 2019, 390,000 new common shares were issued at $29 per share.

2. On March 15, 2020, a 5% common stock dividend on the outstanding shares was declared and distributed when the market price was $42 per share.

3. On September 1, 2020, a dividend of $5.35 per common share was declared. The date of record was September 15, 2020, with the date of payment being October 5, 2020.

4. The preferred dividend for the year was declared and paid.

Prepare the statement of changes in shareholders’ equity as at September 30, 2020. (If an amount reduces the account balance then enter with negative sign, e.g. -15,000 or in parenthesis, e.g. (15,000).)

Prepare the shareholders’ equity section of the statement of financial position as at September 30, 2020. (Enter negative answers using either a negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).)

A publicly traded company operating over 800 restaurants nationally and in 15 foreign countries with 34,000 employees with a reported gross revenue of $1.25 billion dollars is the subject of this action. This chain restaurant posted an internal announcement for a temporary summer position in its Park City, Utah resort location for employees in a nine state region. The position included company-provided housing and greater earnings. However, the announcement stated that only female employees would be considered because of concerns about housing employees of both genders together. The restaurant selected only women for those summer jobs. Two male employees were turned down for the opportunity. Please answer the following questions.

1) What federal law will the two male employees rely on in this action?

2) Can the two male employees bring an action in federal court immediately? If not, with what federal agency must they file a complaint first?

3) What is the statute of limitation of limitations on the filing of the complaint?

4) What doctrine will the male employees most likely use to prove discrimination and how will they go about proving it? How might the employer respond to or refute the allegations of discrimination?

5) How do you think the Court should rule and what is the basis for that ruling?

• Individual task
• Students should provide a stock price fluctuation analysis of a publicly traded company , using the financial data available effecting the stock market.
• Key contextual elements should include the stock exchange market, stock market indexes e.g. the Standard &Poor’s 500 Index and the Dow Jones Industrial Average in the context of market forces and economic forces, that demonstrate a clear understanding of the learning objectives discussed in this course.
• Title page, Written Body, along with a Bibliography of any written references, images, or diagrams used (if applicable). NOTE: Formal Written Reports must include a Title Page, Table of Contents, and Appendix of Financial Statements.
• Formal Written Report saved and uploaded to Moodle in PDF format.

Formalities:

• Word count: 2000 words

1. Ridley Inc. is a small, publicly traded construction company with 50 million shares outstanding trading at $10 a share. Ridley has:

• Unlevered beta of 1.1
• One bank loan with interest payments of $5 million a year for 5 years and a principal payment (FV) of $250 million
• Rating of Baa, for which the default spread is 2%
• Marginal tax rate of 40%

The risk-free rate is 2.5%, and the equity risk premium is 5.5%. What is the current cost of capital for Ridley? (hint: find the MV of debt using the data provided … in order words find the PV of the debt)

Plastic Parts Co. is a publicly traded company. Its beta is 0.85. The market risk premium is 11.5% and T-bills are yielding 2.2%. PPC just paid a dividend of $1.15 and its stock is trading at $22. Analyst consensus is that PPC dividends should grow at 6%.

PPC has 20 million common shares outstanding.

The firm has a $15 million bank loan that is held at the bank (the loan is not trading on a secondary market) at 6.25% APR. It pays the bank interest annually.

PPC has a $100 million bond outstanding. The bond has 5 years to maturity, is trading at 110, and has a coupon of 8%. PPC pays interest on the bond semi-annually.

PPC’s tax rate is 35%.

a.If you compare PPC to another plastics/ chemical firm that has a beta of 1.1, which would be considered the “riskier” stock? Why?

b.How does PPC’s risk premium compare to the market risk premium?

c.You have a stock portfolio with a beta of 1.27. What is the expected return of your portfolio? (Hint: Use the CAMP to estimate the expected return of your portfolio)

d.You want to decrease the risk in your portfolio and decide to diversify by adding PPC to your portfolio. PPC will represent 5% of your new portfolio. What is the expected return of the new portfolio once you add PPC?

e.You are an analyst who must estimate an expected return for PPC shares over the coming year. What is a reasonable estimate given the above information (HINT: an expected return is the same as the cost of equity capital, and a reasonable estimate of the cost of equity capital is the average of the dividend model and the CAPM models).

f.What is the market capitalization of PPC common equity?

g.What is the cost of private (loan) debt?

h.What is the firm’s enterprise value?

i.Calculate the capital structure weights for:

1)What is the capital structure weight for equity capital?

2)What is the capital structure weight for bond capital?

3)What is the capital structure weight for loan capital?

4)What is PPC's WACC?

Tara’s Treasures Inc. is a publicly traded company that develops, manufactures, and distributes professional quality exercise equipment. The firm was established in 1965 in Burlington, Vermont and went public in 1975. Sales were initially from only the Northeast region of the United States, but since going public the company has grown significantly and now supplies exercise equipment in all fifty states. In 2015 the company reported a market capitalization of $950 million. Recently, the company has decided to enter the INTERNATIONAL Market in order to enhance their growth potential. Tara’s Treasures, Inc.’s CFO, has been with Tara’s Treasures, Inc. for 20 years and has held the position of CFO for the past 5 years. Your Role: Assume that you are the Financial Accounting Controller for Tara’s Treasures, Inc. You report directly to the CFO. Recently, the CFO came to you with an article that he found on CFO.com that deals with adoption of International Financial Reporting Standards (IFRS). The CFO wants to know more about the implications of IFRS adoption. Specifically, he has asked you do some research and find answers to the following questions: 1. What are the primary benefits of IFRS adoption for US firms in general? Describe at least three benefits. 2. What are the primary costs of IFRS adoption for US firms in general? Describe at least three costs. 3. The CFO does not understand how IFRS differs from current US GAAP. Briefly describe the differences between GAAP and IFRS and in support of your analysis include two areas of Tara’s Treasures financial statements that could be reported differently under IFRS. 4. Based on your research, do you think that Tara’s Treasures should be in favor of or opposed to IFRS adoption and is there any plans they should be making to prepare for the consequences.

A publicly traded company operating over 800 restaurants nationally and in 15 foreign countries with 34,000 employees with a reported gross revenue of $1.25 billion dollars is the subject of this action.  This chain restaurant posted an internal announcement for a temporary summer position in its Park City, Utah resort location for employees in a nine state region. The position included company-provided housing and greater earnings. However, the announcement stated that only female employees would be considered because of concerns about housing employees of both genders together. The restaurant selected only women for those summer jobs. Two male employees were turned down for the opportunity. Please answer the following questions.

1) What federal law will the two male employees rely on in this action?

2) Can the two male employees bring an action in federal court immediately? If not, with what federal agency must they file a complaint first?

3) What is the statute of limitation of limitations on the filing of the complaint?

4) What doctrine will the male employees most likely use to prove discrimination and how will they go about proving it? How might the employer respond to or refute the allegations of discrimination?

5) How do you think the Court should rule and what is the basis for that ruling?

You are analyzing Delta Enterprises, a small publicly traded company with

$50 million of debt outstanding, and 25 million shares, trading at $10/share.

The firm generated $40 million in after-tax cash flows last year, and you esti-

mate that these cash flows will grow 2% a year in perpetuity and that the cost

of capital for the firm is 12%.

a. Estimate a value per share for the firm, assuming it has no cash balance.

b. Now assume that you find out that a significant portion of the firm’s revenues

comes from one customer and that there is a 20 percent chance that this con-

tract will be lost next year. Assuming that a lost contract will result in a 50%

drop in the after-tax cash flows, estimate the value per share today. (You can

assume that the growth rate and cost of capital will be unaffected).

Tesla Corporation is a publicly-traded company that has a December 31st year-end. For the 2015 fiscal year, there were 500,000 common shares outstanding all year. Net income for the year ended December 31, 2015, was $800,000. The company’s income tax rate is 30%. During 2014, the company issued a $6,000,000, 10% convertible bond at par. Each 2,000 bond is convertible into 10 common shares. No bonds have been converted as of December 31st, 2015. Also during 2014, Spade issued 200,000, $2 cumulative, convertible preferred shares. Two preferred shares are convertible into one common share. The preferred share dividend was declared and paid in June 2015. Calculate basic and diluted earnings per share for 2015.

Find a publicly traded company that has treasury stock on its balance sheet. Provide a link to the balance sheet in your post and explain the details of the treasury stock transactions based upon the amounts and disclosures found in the financial statements. Why do you think the company acquired the treasury stock? Do not choose a company that has already been reported on by one of your classmates. Participate in follow-up discussion by critiquing the posts provided by your classmates and defending their challenges to your post. Your initial post should be 250-500 words and should demonstrate solid academic writing skills. Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.