Stering Optcal anoth make glass frames and each is able to generate earnings before interest and...
Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $97,600. The separate capital structures for Sterling and Royal are shown here Sterling Royal Debt @ 8% Common stock, $5 par Total Common shares $. 732,000 Debt @ 8% $ 244,000 976,000 $1,220,000 195,200 488,000 Common stock, $5 par $1,220,000 Total 97,600 Common shares a. Compute earnings per share for both firms. Assume a 25 percent tax rate. (Round...
Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $132,000. The separate capital structures for Sterling and Royal are shown here: Sterling Debt @ 12% Common stock, $5 par Total Common shares Royal $ 660,000 Debt @ 12% 440,000 Common stock, $5 par $1,100,000 Total 88,000 Common shares $ 220,000 880,000 $1,100,000 176,000 a. Compute earnings per share for both firms. Assume a 25 percent tax rate. (Round...
Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $136,000. The separate capital structures for Sterling and Royal are shown here: Sterling Debt @ 10% Common stock, $5 par Total Common shares Royal $ 816,000 Debt @ 10% 544,000 Common stock, $5 par $1,360,000 Total 108,800 Common shares $ 272,000 1,088,000 $1,360,000 217,600 a. Compute earnings per share for both firms. Assume a 30 percent tax rate. (Round...
Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $113,600. The separate capital structures for Sterling and Royal are shown here Sterling Royal Debt @ 8% Common stock, $5 $ 852.000 Debt @ 8% $ 284,000 1,136,000 $1,420,000 227,200 568,000 Common stock, $5 par Total Common shares $1,420,000 Total 113,600 Common shares a. Compute earnings per share for both firms. Assume a 30 percent tax rate. (Round your...
Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $156,000. The separate capital structures for Sterling and Royal are shown here Sterling Royal Debt @ 12% Common stock, $5 pars $ 780,000 Debt @ 12% $ 260,000 520.000 Common stock, $5 par Total Common shares $1,300,000 208,000 $1,300,000 Total 104,000 Common shares a. Compute earnings per share for both firms. Assume a 30 percent tax rate. (Round your...
$100,000 Common stock, $10 par 200,000 ................................ $300,000 Common shares .................................. 20,000 Total Advanced Problems Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $132,000. The separate capital structures for Sterling and Royal are shown here: Leverage and stockholder wealth (LO5-4) Sterling Royal Debt @ 12% ......... $ 660,000 Common stock, $5 par ............. 440,000 Total $1,100,000 Common shares ........ 88,000 Debt @ 12%. $ 220,000 Common stock,...
urrently bonds with a similar cred rating and maturity as the firms outstandng dett are selling to yield 7.86 percent while the borowing fims corporate tax rate is 34 percent n stock k for a tirm that paid a $1.05 dividend last year The dvidends are expected to grow at a rate of 4.4 pencent per year into the foreseeable future The pnice of this stock is now $24 68 bond that has a $1,000 par value and a coupon...
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $35 par value (no change during the year) $5,250,000 Preferred $5 stock, $100 par (no change during the year) 2,000,000 The net income was $310,000 and the declared dividends on the common stock were $37,500 for the current year. The market price of the common stock is $11.20 per share. For...
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $45 par value (no change during the year) $7,200,000 Preferred $10 stock, $200 par (no change during the year) 4,000,000 The net income was $552,000 and the declared dividends on the common stock were $40,000 for the current year. The market price of the common stock is $15.40 per share. For...
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $10 par value (no change during the year) Preferred $8 stock, $200 par (no change during the year) $3,000,000 8,000,000 The net income was $1,040,000 and the declared dividends on the common stock were $75,000 for the current year. The market price of the common stock is $18.00 per share. For...