28)
Time | Outstanding shares | Price/share | Market cap. |
Dec 2006 | 100 | 20 | 2000 |
Dec 2007 | 98 | 22 | 2156 |
2156 - 2000 = increase of 156 million - option c.
29)
price/Share | 20 |
Earnings / share | 250/100 = 2.5 |
P/E | 20/2.5 = 8 |
option b.
Widget Co. was founded at the start of 2016 by issuing 10M shares at $187.50 per...
Widget Co. was founded at the start of 2016 by issuing 10M shares at $187.50 per share and $1,200M of long term debt. All data in the table, except actual price per share, is in millions. No assets were sold during the first two years of operation. Remember when and where to include marketable securities and the current portion of long term debt in your intermediate calculations. Use this information and the table below to answer problems 28-30 Net Income...
28. Between December 2016 and December 2017, Widget Company’s market capitalization: Increased by $332M Increased by $200M Increased by $156M Decreased by $156M Decreased by $200M 29. At the end of 2016, Widget Company’s P/E is closest to: a. 7.2 b. 8.0 c. 14.4 d. 15.0 e. 16.0 30. During 2017, Widget Company __________. HINT: BOY SE + NI – DIVS + Equity Issued – Equity Repurchased = EOY SE 23 Net borrowing was $200M and shares outstanding were repurchased...
30. During 2017, Widget Company __________. HINT: BOY SE + NI – DIVS + Equity Issued – Equity Repurchased = EOY SE 23 Net borrowing was $200M and shares outstanding were repurchased at a price of $24 per share Net borrowing was $200M and the company issued shares at a price of $25 per share Net borrowing was $300M and shares outstanding were repurchased at a price of $24 per share Net borrowing was $300M and shares outstanding were repurchased...
Company X went public at the start of 2017. At the time of the IPO the company: Issued 200M shares of stock at $25 per share (thus raising $500M in equity) Issued $400M of long term debt; as part of this interest only loan, the company agreed to pay creditors 15.0% per year; this implies the current portion of long term debt is $0 in 2017/2018 At the end of 2017, Company X issued financial statements. A complete...
Company X went public at the start of 2017. At the time of the IPO the company: Issued 200M shares of stock at $25 per share (thus raising $500M in equity) Issued $400M of long term debt; as part of this interest only loan, the company agreed to pay creditors 15.0% per year; this implies the current portion of long term debt is $0 in 2017/2018 At the end of 2017, Company X issued financial statements. A complete...
Use the following information about Company X to help answer questions 14-20: \ start of 2017. : Issued 200M shares of stock at $25 per share $500M Issued $400M of long term debt; as part of this interest only loan, the company agreed to pay creditors 15.0% per year; this implies the current portion of long term debt is $0 in 2017/2018 At the end of 2017 $400M in sales, $260M in operating earnings, and $160 in...
Use the following information about Company X to help answer questions 14-20: Company X went public at the start of 2017. At the time of the IPO the company: Issued 200M shares of stock at $25 per share (thus raising $500M in equity) Issued $400M of long term debt; as part of this interest only loan, the company agreed to pay creditors 15.0% per year; this implies the current portion of long term debt is $0 in 2017/2018...
Use the following information about Company X to help answer questions 14-20 Company X went public at the start of 2017. At the time of the IPO the company: Issued 200M shares of stock at $25 per share (thus raising $500M in equity) Issued $400M of long term debt; as part of this interest only loan, the company agreed to pay creditors 15.0% per year; this implies the current portion of long term debt is $0 in 2017/20l 8 At...
Cabo Company has $1,000,000 in assets and $1,000,000 in stockholders’ equity, with 40,000 shares outstanding the entire year. It has a return on assets of 10%. During 2016, it had net income of $100,000. On January 1, 2017, it issued $400,000 in debt at 4% and immediately repurchased 20,000 shares for $400,000. Management expected that, had it not issued the debt, it would have had net income of $100,000 in 2017. Determine the company’s net income and earnings per share...
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