Reference no: EM131063265
"Sophia Dueno organized Newtown Type, Inc. in January 1999. The corporation immediately issued at $12 per share one-half of its 150,000 authorized shares of $1 par value common stock.
On January 2, 2000, the corporation sold at par value the entire 10,000 authorized shares of 10%, $100 par value, cumulative preferred stock.
On January 2, 2001, the company again needed money and issued 5,000 shares of an authorized 10,000 shares of no-par, cumulative preferred stock for a total of $540,000. The no-par shares have a stated dividend of $8 per share.
The company declared no dividends in 1999 and 2000. At the end of 2000, its retained earnings were $220,000. During 2001 and 2002 combined, the company earned a total of $930,000. Dividends of 60 cents per share in 2001 and $1.50 per share in 2002 were paid on the common stock. "
a. Prepare the stockholder’s equity section of the balance sheet at December 31, 2002. Include a supporting schedule showing your computation of retained earrings at the balance sheet date. (Hint: Income increases retained earnings, whereas dividends and net losses decrease retained earnings.)
b. Assume that on January 2, 2002, the corporation could have borrowed $1,000,000 at 10% interest on a long-term basis instead of issuing the 10,000 shares of the $100 par value cumulative preferred stock. Identify two reasons a corporation may choose to issue cumulative preferred stock rather than finance operations with long-term debt.
|
Find the next definitive merger agreement
: Krispy Kreme Doughnuts, Inc. (NYSE: KKD) 23.7% HIGHER; Krispy Kreme Doughnuts and JAB Beech Inc., Find the next definitive merger agreement for this week.
|
|
Evaluating project with the cash flows
: Chamberlain Corp. is evaluating a project with the following cash flows: The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods.
|
|
Analysis and comparison of the companies financing sources
: Every group for this assignment is required to select any two (2) public listed companies in the Australian Stock Exchange ASX and then write a report to evaluate their financing sources
|
|
The future potential of the stock warrants the price
: Choose a stock that is publicly traded and explain how you think the future potential of the stock warrants the price it sells at today – please explain and support with terms and concepts from this class material?
|
|
Prepare the stockholder equity section of the balance sheet
: "Sophia Dueno organized Newtown Type, Inc. in January 1999. The corporation immediately issued at $12 per share one-half of its 150,000 authorized shares of $1 par value common stock. Prepare the stockholder’s equity section of the balance sheet at D..
|
|
Prepare the consolidated financial statements for nzl
: Prepare the consolidated financial statements for NZL and its controlled entities as at 31 March 2016. You have been provided with an Excel template for entering the $ amounts for the items in the consolidated financial statements.
|
|
Which will the shareholders favor and the bondholders
: The managers of a firm are asked to consider two possible new product lines for the firm. Project 1 is quite risky and may result in a market value for the firm of $50 million in two years, or nothing. What are the possible payoffs to the shareholder..
|
|
Discussions of compensation during performance management
: 1. What are the advantages and disadvantages to including discussions of compensation during a performance management interview? 2. How does a manager decide how often to conduct formal performance management interviews?
|
|
How many operators should the agency hire
: Assume that operators receive $38 an hour again, but that the cost of personal calls rises to $0.75 in wasted wages. How many operators should the agency hire?
|