On December 31, 2017, Berclair Inc. had 280 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $250 million. The income tax rate is 40%.

Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2013. The options are exercisable as of September 13, 2017, for 30 million common shares at an exercise price of $56 per share. During 2018, the market price of the common shares averaged $70 per share.

In 2014, $62.5 million of 8% bonds, convertible into 6 million common shares, were issued at face value.

Required:

Compute Berclair’s basic and diluted earnings per share for the year ended December 31, 2018

On January 1, 20X1, Metro Plaza Inc. (MPI), a real estate company using IFRS, issued$1,000,000, 8%, five year bonds for a cash price of $1,250,000. Interest is payable semi-annually on June 30 and December 31. Each $100 bond includes 20 warrants. Each warrant can be exchanged for one common share of MPI at an exercise price of $10 per share. The market rate of interest is 6% for similar bonds without warrants and the fair market value of these bonds was determined to be $1,085,302. Required: 1) Prepare the appropriate journal entry to record the issue of the bonds on January 1, 20X1; 2) Prepare the appropriate journal entry required on December 31, 20X1; 3) How would the bonds be reported on the balance sheet at December 31, 20X1; 4) 30% of the warrants were exercised on July 1, 20X3 when the shares of MPI were being traded at $11,50. Prepare the appropriate journal entry or entries which the company should make on July 1, 20X3 to record this transaction. Note: You may find it useful and easier to answer this question by preparing a bond amortization table.

On December 31, 2020, Berclair Inc. had 480 million shares of common stock and 18 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 120 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $900 million.

Also outstanding at December 31 were 63 million incentive stock options granted to key executives on September 13, 2016. The options were exercisable as of September 13, 2020, for 63 million common shares at an exercise price of $60 per share. During 2021, the market price of the common shares averaged $70 per share.

The options were exercised on September 1, 2021.

Required:

Compute Berclair’s basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.)

This company uses the Dutch auction system to sell its IPO. It wanted to sell 10 million shares and received the following bids from investors.

Bidder​ Bid​ Shares

1​ $40​ 2 million

2​ $37​ 7 million

3​ $36​ 2 million

4​ $34​ 10 million

16.   Which of the following statements is correct?

A   Every bidder received some shares.

B   Bidder #4 received 1 million shares

C   Every successful bidder paid the same price of $36.50

D   All of the above are incorrect.

17.​What price was charged from the successful bidders?

A.​$40

B.​$37

C.​$36.50

D.​$36

18.​If the total IPO costs amounted to 10%, what proceeds did the firm receive after all expenses?

A       $324 million

B. $360 million

C   $400 million

D.   None of the above.

19. Assuming shares were allocated on pro-rata basis. This means the successful bidders received about … of the shares they asked for.

A. 100%

B. 110%

C. 80%

D. 85%

E. 91% ​

On January 31 , a firm learns that it will have additional funds available on May31. It will use the funds to purchase $5,000,000 par value of the APCO 9 ½ percent bonds maturing in about 21years. Interest is paid semiannually on March1 and September1. The bonds are rated A2 by Moody’s and are selling for 78 7/8 per 100 and yielding 12.32 percent. The modified duration is 7.81. The firm is considering hedging the anticipated purchase with September T-bond futures. The futures price is 71 8/32. The firm believes that the futures contract is tracking the Treasury bond with a coupon of 12 3/4 percent and maturing in about 25 years. It has determined that the implied yield on the futures contract is 11.40 percent and the modified duration of the contract is 8.32. The firm believes that the APCO bond yield will change 1 point for every1-point change in the yield on the bond underlying the futures contract.

a. Determine the transaction the firm should conduct on January 31 to set up the hedge.

b. On May 31, the APCO bonds were priced at 82 3/4. The September futures price was 76 14/32. Determine the outcome of the hedge

ABC Theater runs multiple shows each month. Each of the 5 theaters has 100 seats. The selling price for each ticket is $10, no matter which show or time of day. Adults, Seniors and Children admissions are all $10 each.

Given the following financial data:

• ABC Theaters pays $8,000 rent for the theater equipment each month
• ABC Theaters owns the building and records depreciation of $1,500 each month
• The management has determined that there is a variable cost of $2 per admission that accounts for maintenance and supplies.
• The movie house managers salary is $36,000 per year or $3,000 per month. The manager also receives a $1 bonus for each paid admission to the theater
• Finally, the ABC Theaters wants to achieve a $10,000 profit at the end of each month.

* Compute the number of ticket admissions required to be sold each month to achieve break even, including the profit goal of $10,000 each month.

* If ABC Theater had an exceptional month and sold 4,000 tickets at their normal price, how much extra profit would they earn beyond their monthly goal of $10,000; assuming the same data as above?

On January 1, 2019, Kittson Company had a retained earnings balance of $218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of $67,000, and the following events occurred:

Required:

Problem VI A-B: Apple used to produce two different versions of the Iphone, Iphone 5s and Iphone 5c. Assume the cost of production is zero. There are two types of consumers on the market, knowledgeable consumers and kids. Knowledgeable consumers value the Iphone 5s at $220 for its superior technology and the Iphone 5c at only $120. Kids don’t know that much about technology and they like colors a lot so their valuations are $110 for the Iphone 5s and $100 for the Iphone 5c. Apple is designing a pricing strategy to sell the Iphone.

a) Apple is considering a price discrimination strategy to sell the Iphone 5s to knowledgeable customers and the Iphone 5c to kids for two different prices. Write down the individual rationality and incentive compatibility constraints for the two types of customers. Find the optimal prices.

b) Assume there are N total consumers and the proportion of knowledgeable consumers is ?. That means there are ?N knowledgable consumers and (1 ? ?)N kids on the market. Write the profit function of Apple if the price discrimination mechanism is put into action.

Please answer this question in complete detail as I don't understand this subject too well. Thank you

On December 31, 2020, Berclair Inc. had 580 million shares of common stock and 6 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 176 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $1,100 million.

Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $56 per share. During 2021, the market price of the common shares averaged $70 per share.

Required:

Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.)

Julie is a portfolio manager at Know Better plc. She wants to estimate the interest rate risk of assets of the company consisting of 1 million sharesof Bond A, 2 million shares of Bond B, and 2 million shares of Bond C. The duration of Bond A is 5.59, a valuation model found that if interest rates decline by 30 basis points, the value of Bond A will increase to 83.5 pounds, and if interest rates increase by 30 basis points, the value of Bond to A will decline to 80.75 pounds. The same valuation model also found that if interest rates decreases by 50 basis points, the value of Bond B increases to 104.6 pounds, and if interest rates increases by 50 basispoints, the value of Bond B decreases to 96.4 pounds, and the current value of Bond B is 100 pounds. Kirstin also knows from the valuation model that, by using the duration and convexity rule, if interest rates decline by 1%, the price of bond C increasesapproximately by 8.46 pounds, and if interest rates increase by 3%, the price of Bond C decreases approximately by 12.77 pounds. The convexity of Bond C is 300 b) What is the duration and convexity of the bond portfolio?