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

1 you are trying to value zombie games inc a company

1. You are trying to value Zombie Games Inc,, a company that manufactures games for the major game systems. You have been provided the following information: · The firm generated $ 30 million as operating profit (EBIT) i ...

What is float what are its four basic components which of

What is float? What are its four basic components? Which of these components is the same from both a collection and a payment perspective? What is the difference between availability float and clearing float, and from wh ...

What is the sum of the cash flows from operating activities

What is the sum of the cash flows from operating activities, financing activities, and investing activities? What does it mean that the financial statements are prepared based on historical cost? Where can an investor fi ...

In the absorption of component a from an air stream into an

In the absorption of component A from an air stream into an aqueous stream, the composition of the two adjacent streams were analyzed to be c A ; L = 4:0 kg mol/m 3  and p A ; G = 1:013 × 10 4  Pa. The Henry's law consta ...

Excel assignment you are going to purchase a new house

Excel Assignment You are going to purchase a new house valued at $250,000 by making the down payment of 20% and borrowing the rest as a 30-year fixed rate mortgage of 5.25%. Solve the problem by creating an Excel spreads ...

1 why are planning and forecasting a global work force so

1. Why are planning and forecasting a global work force so difficult? 2. Why are so many countries bothered by their "brain drain"? 3. If you are given the opportunity in your next job to go on an extended foreign assign ...

Why would an mnc consider examining only its lsquonet cash

Why would an MNC consider examining only its ‘net' cash flows in each currency when assessing its transaction exposure? Are currency correlations perfectly stable over time? What does your answer imply about using past d ...

1 generate three examples of nominal variables and three

1. Generate three examples of nominal variables and three examples of quantitative variables that were not mentioned in the chapter. 2. On a piece of paper make two columns. In one column list all of the advantages of fr ...

Explain how closeout netting reduces the credit risk for

Explain how closeout netting reduces the credit risk for two firms engaged in several derivatives contracts ? How does the legal system impose risk on a derivatives dealer? Consider a firm that has assets that generate c ...

1 labor budget calculating the fixed labor budget instead

1. Labor budget: calculating the fixed labor budget. Instead of the benefits stated in Exhibit l.4e, assume that all benefits are 210/6 and all raises are 3.5% and calculate the fixed labor budget for January, February, ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro