Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) You are on management team for Big Sky Enterprises. It is a commencement of December 2013 and you have been called in to meeting which is discussing the financial projection for the ending of this year (December 31, 2013). You have been given the information which is listed below:

Debt The firm has= $20,000,000 of bonds issues and outstanding.

i) If firm utilizes a retention ratio of= 75%, compute dividends per share the firm will pay based on the present earnings.

ii) The firm will incorporate dividends payable in final balance sheet for the year ending December 31, 2013. Make the proforma balance sheet which incorporates dividend payable account.

iii) If bond issue that matures in five years has protective covenant that mentions that management will maintain a sustain current ratio of 2, determine the maximum dividend per share?

iv) Make the proforma balance sheet which incorporates dividend payable account. $10,000,000 of the bonds mature in two year and carry the 8% coupon which is paid semi-annually $10,000,000 of the bonds were issued last year and mature in five years. The bonds have a 6% coupon which is paid semi-annually. Equity Firm is authorized to have 50,000 shares outstanding. Presently, firm has 25,000 shares issued and outstanding. Projected net income for year ending December 31, 2013 is $17,500.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914814

Have any Question? 


Related Questions in Basic Finance

The sarbanes-oxley act of 2002 sox was passed as the result

The Sarbanes-Oxley Act of 2002 (SOX) was passed as the result of the Enron scandal and other instances of accounting fraud. This act was passed to strengthen the role of the Securities and Exchange Commission (SEC). Rese ...

How does each of the following developments affect banks

How does each of the following developments affect banks' desired equity ratios? Explain. a. An increase in OBS activities b. A shift from C&I lending to real estate lending c. A shift from fixed-rate to floating-rate lo ...

Raimo borrowed 920 from chris on october 28 and agreed to

Raimo borrowed $920 from Chris on October 28 and agreed to repay the debt with simple interest at the rate of 3.6% on May 16. How much interest was owed on May 16? Assume February 28 days. Round answer to the nearest cen ...

1 youve decided to capitalize 100 of your new business by

1. You've decided to capitalize 100% of your new business by obtaining a loan from a local bank. Your initial funding will A. include personal and equity financing. B. include equity and start-up financing. C. consist of ...

What are offsetting open market operationswhen would the

What are offsetting open market operations? When would the Fed use an offsetting open market purchase? An offsetting open market sale?

You drink 5 beers to celebrate the end of your risk

You drink 5 beers to celebrate the end of your risk management and insurance class, then have an accident while driving home from the bar. The police charge you with drunk driving, and with hitting another automobile fro ...

You are an adviser to the indian government until now

You are an adviser to the Indian government. Until now, government policy in India has been to severely limit imports into India, resulting also in a low level of Indian exports. The government is considering a policy sh ...

Annual report projectyou will be analyzing the following

Annual Report Project You will be analyzing the following firms whose SIC code is 1311: - Anadarko Petroleum - EOG Resources For these firms, download the most recent 10-K report for 2014, 2013, and 2012. You can downloa ...

Do you think the new dialysis center will be able to

Do you think the new Dialysis Center will be able to attract more patients? What impact would additional volume have on the facilities allocation decision?

Nicole corporations year-end 2009 balance sheet lists

Nicole Corporation's year-end 2009 balance sheet lists current assets of $756,000, fixed assets of $606,000, current liabilities of $539,000, and long-term debt of $694,000. What is Nicole's total stockholders' equity?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate