Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 70,000 shares of cumulative preferred 3% stock, $20 par, and 405,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $34,000; second year, $74,000; third year, $90,000; fourth year, $120,000. Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0.00". 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividends per share) $ $ $ $ Common stock (dividends per share)
In: Accounting
Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 24,000 shares of cumulative preferred 4% stock, $150 par, and 80,000 shares of $10 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $96,480; second year, $201,520; third year, $252,000; fourth year, $284,000.
Compute the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".
| 1st Year | 2nd Year | 3rd Year | 4th Year | |
| Preferred stock (dividend per share) | $ | $ | $ | $ |
| Common stock (dividend per share) | $ | $ | $ | $ |
In: Accounting
Suppose that you want to short BUG’s outstanding ten-year, 5 percent coupon bond, but you can-not find anyone willing to lend you the bond (to short). Given that US Treasuries and CDS trade, you can create a short position in BUG’s bond by: Select one: a. going long a ten-year CDS on BUG and buying a ten-year US Treasury bond b. going long a ten-year CDS on BUG c. going long a ten-year CDS on BUG and shorting a ten-year US Treasury bond d. going short a ten-year CDS on BUG e. going short a ten-year CDS on BUG and shorting a ten-year US Treasury bond
In: Finance
Assume monetary benefits of an information system of $50,000 the first year and increasing benefits of $5,000 a year for the next four years (year 1 = 50,000; year 2- 55,000; year 3 = 60,000; year 4 = 65,000; year 5 – 70,000). One-time development costs were $90,000 and recurring costs beginning in year 1 were $40,000 over the duration of the system’s life. The discount rate for the company was 10 percent. Using a 5-year horizon, calculate the net present value of these costs and benefits. Also calculate the overall return on investment of the project and then present a break-even analysis. At what point does break-even occur?
You must use formula MS Excel for your calculations in the worksheet
In: Accounting
Lightfoot Inc., a software development firm, has stock outstanding as follows: 41,900 shares of cumulative 1% preferred stock, $130 par, and 100,000 shares of $145 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $32,800; second year, $58,400; third year, $73,100; fourth year, $124,300.
Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".
| 1st Year | 2nd Year | 3rd Year | 4th Year | |
| Preferred stock (dividends per share) | $ | $ | $ | $ |
| Common stock (dividends per share) | $ | $ | $ | $ |
In: Accounting
Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $100,000 and each with an eight-year life and expected total net cash flows of $200,000. Location 1 is expected to provide equal annual net cash flows of $25,000, and Location 2 is expected to have the following unequal annual net cash flows:
| Year 1 | $45,000 | Year 5 | $24,000 | |
| Year 2 | 34,000 | Year 6 | 18,000 | |
| Year 3 | 21,000 | Year 7 | 14,000 | |
| Year 4 | 32,000 | Year 8 | 12,000 |
Determine the cash payback period for both location proposals.
| Location 1 1-8? | years |
| Location 2 1-8? | years |
In: Statistics and Probability
Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 12,000 shares of cumulative preferred 3% stock, $140 par, and 40,000 shares of $10 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $33,720; second year, $77,080; third year, $90,960; fourth year, $107,200.
Compute the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".
| 1st Year | 2nd Year | 3rd Year | 4th Year | |
| Preferred stock (dividend per share) | $ | $ | $ | $ |
| Common stock (dividend per share) | $ | $ | $ | $ |
In: Accounting
Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 16,000 shares of cumulative preferred 3% stock, $120 par, and 53,000 shares of $15 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $38,560; second year, $86,640; third year, $112,970; fourth year, $147,700. Compute the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0". 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) $ $ $ $ Common stock (dividend per share) $ $ $ $
In: Accounting
Sabel Co. purchased assembly equipment for $780,000 on January 1, Year 1. The equipment is expected to have a useful life of 260,000 miles and a salvage value of $26,000. Actual mileage was as follows: Year 1 72,000 Year 2 69,000 Year 3 58,000 Year 4 49,000 Year 5 16,000 Required Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation. Assume that Sabel earns $236,000 of cash revenue during Year 1. Record the purchase of the equipment and the recognition of the revenue and the depreciation expense for the first year in the following financial statements model. Assume that Sabel sold the equipment at the end of the fifth year for $27,200. Calculate the amount of gain or loss on the sale.
In: Accounting
2.Assume the following for a one-year rate adjustable rate mortgage loan that is tied to the one-year Treasury rate: Loan amount: $200,000 Annual rate cap: 1% Life-of-loan cap: 4% Margin : 2.50% First-year teaser rate: 5.50% One-year Treasury rate at end of year 1: 5.25% One-year Treasury rate at end of year 2: 5.50% Loan term in years: 15 Given these assumptions, calculate the following: a.Initial monthly payment b.Loan balance end of year 1 c.Year 2 contract rate d.Year 2 monthly payment e.Loan balance end of year 2 f.Year 3 contract rate g.Year 3 payment
In: Finance