Table
Issue stock | Issue Bonds | |
Income before interest and taxes | 1550000 | 1550000 |
Less: Interest expense | 0 | 81000 |
Income before tax | 1550000 | 1469000 |
Income tax | 620000 | 587600 |
Net income | 930000 | 881400 |
Outstanding shares | 785000 | 650000 |
Earning per share | 1.18 | 1.36 |
Issue bonds is preferable
Brief Exercise 11-11 Shamrock, Inc.currently has 650,000 shares of common stock outstanding. Shamrock, Inc. is considering...
Brief Exercise 11-11 Marin Inc. currently has 620,000 shares of common stock outstanding. Marin Inc. is considering these two alternatives to finance its construction of a new $1.20 milion pla 1. 2. Issuance of 120,000 shares of common stock at the market price of $10 per share. Issuance of $1.20 million, 8% bonds at face value. Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.) Issue Stock $1,520,000 Issue Bonds $1,520,000 Income before interest and taxes...
Brief Exercise 11-11 Skysong, Inc.currently has 770,000 shares of common stock outstanding. Skysong, Inc. is considering these two alternatives to finance its construction of a new $1.95 million plant: 1. Issuance of 195,000 shares of common stock at the market price of $10 per share. 2. Issuance of $1.95 million, 8% bonds at face value. Complete the table. (Round earnings per share to 2 decimal places, ... 52.66.) Issue Stock $1,670,000 Issue Bonds $1,670,000 Income before interest and taxes Interest...
Question 5 Larkspur, Inc.currently has 830,000 shares of common stock outstanding Larkspur, Inc. is considering these two alternatives to finance its construction of a new$ 2.25 milion plant: 1 Issuance of 225,000shares of common stock at the market price of $ 10 per share. 2. issuance of $225 million,5% bondsatface value. Complete the table. (Round earnings per share to 2decimal places, eg. $2.66) Issue Stock Issue Bonds 1.730000 Income before interest and taxes Interest expense from bonds Income before income...
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...
Brief Exercise 11-13 (Part Level Submission) Marin Inc. is considering these two alternatives to finance its construction of a new $1.20 million plant 1. 2. Issuance of 120,000 shares of common stock at the market price of $10 per share. Issuance of $1.20 million, 6% bonds at face value. (a) Complete the table. (Round earnings per share to 2 decimal places, eg. $2.66.) Issue Stock Issue Bonds Income before interest and taxes $1,656,000 $1,656,000 Interest expense from bonds Income before...
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...
See below. Last question options are "higher" or "lower". Brief Exercise 15-10 Sunland Inc. is considering two alternatives to finance its construction of a new $1.50 million plant. (a) Issuance of 150,000 shares of common stock at the market price of $10 per share. (b) Issuance of $1,500,000, 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 Income before interest and taxes $600,000 $600,000 Interest expense...
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...
Brief Exercise 11-13 (Part Level Submission) Sage ill Inc. is considering these two alternatives to finance its construction of a new $1.05 million plant: NMENT RESOURCES ter 11 Homswork rief Exercise 11-04 ief Exercise 11-13 Part Level Submission) Issuance of 105,000 shares of common stock at the market price of $10 per share. 1. 2. Issuance of $1.05 million, 5% bonds at face value. 2o It Review 11-01a Do It Review 11-02b Do ItL Beview 11-03 Exercise 11-11 Complete the...