Homework Answers
Calculate earning per share
| Issue bonds | Issue Stock | |
| Operating income | 9100000 | 9100000 |
| Interest expense (bonds only) | 1120000 | 0 |
| Income before tax | 7980000 | 9100000 |
| Income tax expense | 2793000 | 3185000 |
| Net income | 5187000 | 5915000 |
| Number of share | 2100000 | 3100000 |
| earning per share | 2.47 | 1.91 |
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Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new...
Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new...
Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $16 million gaming center: a. Issue $16 million of 7% bonds at face amount. b. Issue 1 million shares of common stock for $16 per share. value: 9.09 points Required information Required: 1. Assuming bonds or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Enter your answer in dollars, not millions. (i.e., $5.5 million...
Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new...
Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $35 million gaming center a. Issue $35 million, 7 % note. b. Issue 1 million shares of common stock for $35 per share. t 1 of 2 ts Exercise 9-1A Part 1 eBook Required: 1. Assuming the note or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Enter your answers in dollars, not millions....
2 Required information The following information applies to the questions displayed below) Penny Arcades, Inc., is...
2 Required information The following information applies to the questions displayed below) Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $35 million gaming center: a. Issue $35 million, 7% note. b. Issue 1 million shares of common stock for $35 per share. Required: 1. Assuming the note or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Enter your answers in dollars, not...
Ivanhoe Inc. is considering two alternatives to finance its construction of a new $2.40 million plant....
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Shamrock, Inc. is considering these two alternatives to finance its construction of a new $1.65 million...
Shamrock, Inc. is considering these two alternatives to finance
its construction of a new $1.65 million plant:
1.
Issuance of 165,000 shares of common stock at the market price
of $10 per share.
2.
Issuance of $1.65 million, 6% bonds at face value.
Complete the table. (Round earnings per share to 2
decimal places, e.g. $2.66.)
Issue Stock
Issue Bonds
Income before interest and taxes
$1,595,000
$1,595,000
Interest expense from bonds
enter a dollar amount
enter a dollar amount
Income...
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Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $35 million gaming center a. Issue $35 million, 7 % note. b. Issue 1 million shares of common stock for $35 per share. t 1 of 2 ts Exercise 9-1A Part 1 eBook Required: 1. Assuming the note or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Enter your answers in dollars, not millions....
2 Required information The following information applies to the questions displayed below) Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $35 million gaming center: a. Issue $35 million, 7% note. b. Issue 1 million shares of common stock for $35 per share. Required: 1. Assuming the note or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Enter your answers in dollars, not...
Ivanhoe Inc. is considering two alternatives to finance its construction of a new $2.40 million plant. (a) Issuance of 240,000 shares of common stock at the market price of $10 per share. (b) Issuance of $2,400,000, 8% bonds at face value. Complete the following table. (Round earnings per share to 2 decimal places, e.g. 0.25.) Issue Stock $720,000 Issue Bond $720,000 Income before interest and taxes Interest expense Income before income taxes Income tax expense (40%) Net income Outstanding shares...
Sunland Inc. is considering two alternatives to finance its construction of a new $2.20 million plant (a) Issuance of 220,000 shares of common stock at the market price of $10 per share. (b) Issuance of $2,200,000, 7% bonds at face value Complete the following table. (Round earnings per share to 2 decimal places, e.g. 0.25.) Issue Stock Issue Bond $650,000 $650,000 Income before interest and taxes Interest expense Income before income taxes Income tax expense (30%) Net income $ Outstanding...
Shamrock, Inc. is considering these two alternatives to finance
its construction of a new $1.65 million plant:
1.
Issuance of 165,000 shares of common stock at the market price
of $10 per share.
2.
Issuance of $1.65 million, 6% bonds at face value.
Complete the table. (Round earnings per share to 2
decimal places, e.g. $2.66.)
Issue Stock
Issue Bonds
Income before interest and taxes
$1,595,000
$1,595,000
Interest expense from bonds
enter a dollar amount
enter a dollar amount
Income...
Brief Exercise 11-13 (Part Level Submission) Skysong, Inc. is considering these two alternatives to finance its construction of a new $1.50 million plant: 1. 2. Issuance of 150,000 shares of common stock at the market price of $10 per share. Issuance of $1.50 million, 5% bonds at face value. (a) Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.) Issue Stock Issue Bonds Income before interest and taxes $1,400,000 $1,400,000 Interest expense from bonds Income before...
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