Rather than investing in productive long-term assets, reducing outstanding long-term debt, or increasing salaries and benefits...
- Rather than investing in productive long-term assets, reducing outstanding long-term debt, or increasing salaries and benefits for employees, many companies use excess available cash to repurchase a portion of their outstanding common stock on an annual basis.
Required:List several reasons a company might want to repurchase shares of its stock. In formulating your answer, consider the implications for Earnings per Share (“EPS) and Return on Equity (“ROE”).
Note:
- EPS = Weighted Average Common Shares Outstanding / Net Income
- ROE = Average Shareholders Equity / Net Income
Homework Answers
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Rather than investing in productive long-term assets, reducing
outstanding long-term debt, or increasing salaries and benefits...
Balance Sheet Assets Fiscal year is January-December. All values USD millions. 2017 Cash & Short Term...
Balance Sheet Assets Fiscal year is January-December. All values USD millions. 2017 Cash & Short Term Investments 18.3B Total Accounts Receivable 13.49B Inventories 8.77B Other Current Assets 2.54B Total Current Assets 43.09B 2017 Net Property, Plant & Equipment 17.01B Total Investments and Advances 751M Long-Term Note Receivable - Intangible Assets 85.13B Other Assets 4.22B Total Assets 157.3B Liabilities & Shareholders' Equity 2017 ST Debt & Current Portion LT Debt 3.91B Accounts Payable 7.31B Income Tax Payable 1.85B Other Current Liabilities...
LIABILITIES AND EQUITY Short-term debt obligations [2] 4,026 5,485 Accounts payable and other current liabilities 18,112...
LIABILITIES AND EQUITY Short-term debt obligations [2] 4,026 5,485 Accounts payable and other current liabilities 18,112 15,017 Liabilities, Current 22,138 20,502 Long-Term Debt Obligations [2] 28,295 33,796 Deferred Income Tax Liabilities, Net 3,499 3,242 Other Liabilities, Noncurrent 9,114 11,283 Liabilities 63,046 68,823 Commitments and contingencies Preferred Stock, no par value 0 41 PepsiCo Common Shareholders’ Equity Common stock, par value 12/3¢ per share (authorized 3,600 shares, issued, net of repurchased common stock at par value: 1,409 and 1,420 shares, respectively)...
Long-term debt offers advantages and disadvantages to the issuing firm and to the investor in debt...
Long-term debt offers advantages and disadvantages to the issuing firm and to the investor in debt securities. Examine the following two statements and indicate whether each represents an advantage or a disadvantage to the or the investor issuer By being classed as creditors, debtholders Debt securities can increase the issuer's have priority in cash flows and assets as earnings per share, everything else remaining constant compared with shareholders. Does the preceding statement indicate an Does the preceding statement indicate an...
Skysong Corporation reported Long-Term Liabilities and Shareholders' Equity in its December 31, 2020 balance sheet as...
Skysong Corporation reported Long-Term Liabilities and Shareholders' Equity in its December 31, 2020 balance sheet as follows: $7,500,000 $4,600,000 Long Term Liabilities: Bonds Payable 9% interest, convertible to 25 common shares/$1,000 bond Bonds Payable 5% interest, convertible to 30 common shares/$1,000 bond Shareholders' Equity: Class A Preferred shares $3.90 cumulative preferred share convertible into 7 common shares, 102,000 authorized, issued and outstanding Class B Common shares Unlimited number authorized 4,820,000 issued and outstanding $5,000,000 $28,920,000 All of the above reported...
Current assets 1,333,333 Long-term assets 4,666,667 Total assets 6,000,000 Current liabilities 637,754 Long-term liabilities 3,577,724 Owners'...
Current assets 1,333,333 Long-term assets 4,666,667 Total assets 6,000,000 Current liabilities 637,754 Long-term liabilities 3,577,724 Owners' equity 1,784,522 Salmon Enterprises Bonds outstanding: 3,000 selling at $999.37 Common stock outstanding: 260,000 selling at $30.99 Book value versus market value components. Compare Trout, Inc. with Salmon Enterprises, using the balance sheet of Trout and the market data of Salmon for the weights in the weighted average cost of capital: If the after-tax cost of debt is 10.3% for both companies and the...
Using the 10K, you will answer the questions below related to Intel’s long term operating assets,...
Using the 10K, you will answer the questions below related to
Intel’s long term operating assets, both tangible and
intangible.
Calculate the percent-depreciated ratio as of December 29, 2018
and December 30, 2017 using the formula on page 385/386 of the
textbook. Discuss what this tells you about Intel’s long-term
operating assets.
CONSOLIDATED BALANCE SHEETS Dec 29, Dec 30, (In MIllons, Except Par Value) 2018 2017 Asseta Current assets Cash and cash equlvalents 3.019 3.433 Short-term investments 2,788 1.814 Trading...
Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, plant and Equipment Stockholders' Equity...
Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Additional Paid-in Capital Paid-in Capital Capital Stock Total Capital Stock Total Paid-in Capital Total Stockholders' Equity Total Additional Paid-in Capital Total Paid-in Capital and Retained Earnings Ayayai Corp. has issued 90,000 shares of $4 par...
_____5. Jasper Corp, has the following Stockholders’ Equity account balances and activity for Year 2. Net...
_____5. Jasper Corp, has the following Stockholders’ Equity account balances and activity for Year 2. Net income $12,700,000 Retained earnings $15,250,000 Preferred stock shares outstanding 1,000 Common stock shares outstanding at January 1, Year 2 7,255,000 Additional Common shares issued at July 1, Year 2 20,000 3-for-1 stock split at December 31, Year 2 Preferred Dividends $10,000 Common Dividends $62,000 Year 1 EPS $2.56 Earnings per share = __________________ / ___________________* = ________ * Compute Denominator: Weighted average common shares...
5. Jasper Corp, has the following Stockholders' Equity account balances and activity for Year 2. $12,700,000...
5. Jasper Corp, has the following Stockholders' Equity account balances and activity for Year 2. $12,700,000 $15,250,000 Net income Retained earnings Preferred stock shares outstanding Common stock shares outstanding at January 1, Year 2 Additional Common shares issued at July 1, Year 2 3-for-1 stock split at December 31, Year 2 1,000 7,255,000 20,000 $10,000 $62,000 $2.56 Preferred Dividends Common Dividends Year 1 EPS Earnings per share Compute Denominator: Weighted average common shares outstanding Portion of year Weighted Average Shares...
How much of Gap’s long-term debt will become due and payable in less than 1 year?...
How much of Gap’s long-term debt will become due and payable in
less than 1 year?
Refer to the balance sheet below.
THE GAP, INC. CONSOLIDATED BALANCE SHEETS February 2, 2019 February 3, 2018 1,783 1,081 S 288 2,131 751 4,251 1,997 788 4,568 2,912 886 8,049 $ 2,805 616 7,989 $ $ ($ and shares in millions except par value) ASSETS Current assets: Cash and cash equivalents Short-term investments Merchandise inventory Other current assets Total current assets Property and...
Long-term debt offers advantages and disadvantages to the issuing firm and to the investor in debt securities. Examine the following two statements and indicate whether each represents an advantage or a disadvantage to the or the investor issuer By being classed as creditors, debtholders Debt securities can increase the issuer's have priority in cash flows and assets as earnings per share, everything else remaining constant compared with shareholders. Does the preceding statement indicate an Does the preceding statement indicate an...
Skysong Corporation reported Long-Term Liabilities and Shareholders' Equity in its December 31, 2020 balance sheet as follows: $7,500,000 $4,600,000 Long Term Liabilities: Bonds Payable 9% interest, convertible to 25 common shares/$1,000 bond Bonds Payable 5% interest, convertible to 30 common shares/$1,000 bond Shareholders' Equity: Class A Preferred shares $3.90 cumulative preferred share convertible into 7 common shares, 102,000 authorized, issued and outstanding Class B Common shares Unlimited number authorized 4,820,000 issued and outstanding $5,000,000 $28,920,000 All of the above reported...
Using the 10K, you will answer the questions below related to
Intel’s long term operating assets, both tangible and
intangible.
Calculate the percent-depreciated ratio as of December 29, 2018
and December 30, 2017 using the formula on page 385/386 of the
textbook. Discuss what this tells you about Intel’s long-term
operating assets.
CONSOLIDATED BALANCE SHEETS Dec 29, Dec 30, (In MIllons, Except Par Value) 2018 2017 Asseta Current assets Cash and cash equlvalents 3.019 3.433 Short-term investments 2,788 1.814 Trading...
Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Additional Paid-in Capital Paid-in Capital Capital Stock Total Capital Stock Total Paid-in Capital Total Stockholders' Equity Total Additional Paid-in Capital Total Paid-in Capital and Retained Earnings Ayayai Corp. has issued 90,000 shares of $4 par...
5. Jasper Corp, has the following Stockholders' Equity account balances and activity for Year 2. $12,700,000 $15,250,000 Net income Retained earnings Preferred stock shares outstanding Common stock shares outstanding at January 1, Year 2 Additional Common shares issued at July 1, Year 2 3-for-1 stock split at December 31, Year 2 1,000 7,255,000 20,000 $10,000 $62,000 $2.56 Preferred Dividends Common Dividends Year 1 EPS Earnings per share Compute Denominator: Weighted average common shares outstanding Portion of year Weighted Average Shares...
How much of Gap’s long-term debt will become due and payable in
less than 1 year?
Refer to the balance sheet below.
THE GAP, INC. CONSOLIDATED BALANCE SHEETS February 2, 2019 February 3, 2018 1,783 1,081 S 288 2,131 751 4,251 1,997 788 4,568 2,912 886 8,049 $ 2,805 616 7,989 $ $ ($ and shares in millions except par value) ASSETS Current assets: Cash and cash equivalents Short-term investments Merchandise inventory Other current assets Total current assets Property and...
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