Assuming another company owns 25 percent of the common

Assignment Help Finance Basics
Reference no: EM13573939

Holding Company. Usry Company holds stock in company A and company B and possesses voting control over both. Balance sheet data follow:

Usry Corporation

Investment


Long-term liabilities

$ 30,000

Company A

$ 20,000

Preferred stock

10,000

Company B

80,000

Common stock equity

60,000

Total

$100,000

Total

$100,000

Company A

Current assets

$200,000

Current liabilities

$100,000

Noncurrent assets

300,000

Long-term liabilities

200,000



Common stock equity

200,000

Total

$500,000

Total

$500,000

Company B

Current assets

$300,000

Current liabilities

$200,000

Noncurrent assets

400,000

Long-term liabilities

350,000



Common stock equity

150,000

Total

$700,000

Total

$700,000

(a) What is the percent of total assets controlled by Usry Corporation resulting from its common stock equity? (b) Assuming another company owns 25 percent of the common stock of Usry and has voting control, what is the percent of the total assets controlled by the other firm's equity?

Reference no: EM13573939

Questions Cloud

Given your resource schedule compute the early late and : given your resource schedule compute the early late and slack times for your project. which activities are now
What was the total amount of new money raised what was the : in 1998 the pandora box company made a rights issue at 5 a share of one new share for every four shares held. before
Purchased 20 1000 10 year 6 par bonds from flier inc for : beauty corp has an investment portfolio in which they keep investments in equity securities and debt instruments. they
You have been hired to design an advertisement for a : you have been hired to design an advertisement for a gubernatorial candidate in your state. your ad may support or
Assuming another company owns 25 percent of the common : holding company. usry company holds stock in company a and company b and possesses voting control over both. balance
Suppose that the plant can be sold for 90 million to : an auto plant that costs 100 million to build can produce a new line of cars that will generate cash flows with a
Jhns post merger beta is estimated to be 15 the : merger value. burger queen a national hamburger chain is considering a smaller chain johns burger. burger queens
The dunphys made timely estimated federal income tax : requiredbull use the following information to complete phillip and claire dunphys 2012 federal income tax return. if
The purpose of this assignment is for you to apply your : the purpose of this assignment is for you to apply your understanding of sociological theory and concepts to the world

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Computing bond-s value

By previous agreement company will omit the coupon interest payments in years 8, 9, and 10. These payments will be repaid, without interest, at maturity. Compute the bond's value?

  Find various stakeholders in publicly traded corporation

Determine who are the various stakeholders in a publicly traded corporation, and why is communication of financial reports important to them?

  What are the days sales in receivables

A firm has $28,700 in receivables and $165,600 in total assets. The total asset turnover rate is 1.85 and the profit margin is 7 percent. What are the days' sales in receivables?

  An investment earns 35 the first year earns 40 the second

an investment earns 35 the first year earns 40 the second year and loses 39 the third year. the total compound return

  What is a miss with the claim the value of a stock is the

what is a miss with the claim the value of a stock is the discounted value of expected future cash

  Assume you hold a well-balanced portfolio of common stocks

assume you hold a well-balanced portfolio of common stocks. under what conditions might you want to use a stock-index

  How much larger or smaller is the bank loan payment

Sutton can also lease the equipment for 5 end-of-year payments of $1,790,000 each. How much larger or smaller is the bank loan payment than the lease payment? Note: Subtract the loan payment from the lease payment.

  Compute the cost of equity capital using capm

Compute the cost of equity capital using CAPM and dividend capitalization model and Calculate the after-tax cost of preferred stock for Bozeman-Western Airlines

  Which of the following is a different concept from the other

Which of the following is a different concept from the other three?

  You want to set up an education trust for a relative

you want to set up an education trust for a relative starting in 2014. the trust will pay 25000 a year starting in

  What is the dollar benefit of the system to drugs

What is the dollar benefit of the system to Drugs 'R Us? (coffee) Should the firm initiate the lockbox system?

  What is the net incremental tax cash flow

The firm's marginal tax rate is 34 percent and its required rate of return is 12%. What is the net incremental tax cash flow?

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