What is immediate dilution potential for new stock issue

Assignment Help Finance Basics
Reference no: EM131299052

1. Louisiana Timber Company currently has 5 million shares of stock outstanding and will report earnings of $6.99 million in the current year. The company is considering the issuance of 2 million additional shares that will net $36 per share to the corporation.

a- What is the immediate dilution potential for this new stock issue? (Do not round intermediate calculations and round your answer to 2 decimal places.)

b- Assume the Louisiana Timber Company can earn 11.40 percent on the proceeds of the stock issue in time to include it in the current year's results. Calculate earnings per share. (Do not round intermediate calculations and round your answer to 2 decimal places.)

2. The Pioneer Petroleum Corporation has a bond outstanding with an $90 annual interest payment, a market price of $910, and a maturity date in five years. Assume the par value of the bond is $1,000.

Find the following: (Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

a. Coupon rate %?_______

b. Current yield %?________

c-1. Approximate yield to maturity %?_________

c-2. Exact yield to maturity %?__________

Reference no: EM131299052

Questions Cloud

Reflecting upon the idea of functionalism : In reflecting upon the idea of functionalism and its relationship to social stability in society, do you agree with concept of the model? In your discussion, specifically address the idea that because society's needs and individual's needs are sim..
Describe the shape center and spread of this distribution : Minority students in engineering. Figure 11.11 is a histogram of the number of minority students (black, Hispanic, Native American) who earned doctorate degrees in engineering from each of 152 universities in the years 2000 through 2002.
Measures of univariate variable description : Explain the measures of univariate variable description that we have (i.e., frequency, central tendency, and dispersion). What do these measures tell us? Why are they useful?
Write application that will keep track of number of customer : Write Java application that will keep track of a number of customer's purchases at local discount stand. Customers will know exactly how many items they will purchase, so use an appropriate loop on this lab and let's keep the rules simple.
What is immediate dilution potential for new stock issue : Louisiana Timber Company currently has 5 million shares of stock outstanding and will report earnings of $6.99 million in the current year. What is the immediate dilution potential for this new stock issue
Review the office of inspector general work plan : Review the Office of Inspector General Work Plan: Selected Areas for Review in Billing and Claims Processing, Fiscal Year 2013. Discuss actions that a healthcare organization can take to eliminate or reduce government penalties under this plan.
Clearly describes the security strategy being proposed : Clearly describes the security strategy being proposed. Strategy covers the confidentiality, integrity and availability. Link Solutions by clearly describes the linkage between each technology and the strategy.
Key elements of the medicare cost report : Describe the key elements of the Medicare cost report. Why is this report so important for hospital net revenues? Your response must be at least 200 words in length.
Provides an equivalent parallel resistance of rp : In the circuit of Figure, we place a parallel RLC tank in series with the source of M4 such that, at resonance, the noise contribution of M4 is reduced.- Recalculate Equation if the tank provides an equivalent parallel resistance of RP.

Reviews

Write a Review

Finance Basics Questions & Answers

  Time series analysis of revenues

Find out a company at that your organization might consider a competitor. Show the time series for revenues over as many years as you can find. Based on this time series, how is the company doing?

  The stock sells for 30 a share and the option has an strike

a call option on the stock of bedrock boulders has a market price of 7. the stock sells for 30 a share and the option

  Determine the potential market share for a product concept

Use the ATAR model to determine the potential market share for a product concept assuming that it will achieve a trial rate of 25%, 80% awareness in the market, and 65% availability in stores.

  Purpose of auditing-other assurance services and accounting

Write a paper of no more than 700 words describing and stating the purpose of auditing, other assurance services, and accounting. State the relationships between the three and provide examples.

  Brunos lunch counter is expanding and expects operating

brunos lunch counter is expanding and expects operating cash flows of 26000 a year for 4 years as a result. this

  Will a highly leveraged company do better or worse during

will a highly leveraged company do better or worse during an economic recession then a company that is not highly

  Suppose that a bond is purchased between coupon periods the

suppose that a bond is purchased between coupon periods. the days between the settlement date and the next coupon

  Compute return on proposed 20000 investment and indicate

richard e-mailed that he and monica differed about the impact of his extra spending over the past 15 years. he

  Positive tronics industries preferred stock has a par value

1. positive tronics industries preferred stock has a par value of 100 and pays a dividend of 6.00 per share. it

  Outlining the effects of financial planning

Write an APA style paper outlining the effects of financial planning, governance and ethical issues in modern economies. This paper should be between 1750 - 2000 words and should identify current policies or initiatives to promote ethical behavior..

  Find the price of a call option on the stock

The current price of a stock is $20 . In 1 year, the price will be either $26 or $16. The annual risk -free rate is 5%. Find the price of a call option on the stock that has a strike price of $21 and that expires in 1 year. (Hint: Use daily compou..

  What was the average annual rate of return on long-term

What was the average annual rate of return on long-term corporate bonds during the period 1926 to 2008.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd