Determine by how much MIKE share/ or the MIKE firm is over/ (undervalued)
Q: ts & Short Investments 6.75% 6.4 5.97% 6.76% unts Receivable 6.2 ntories r Current Assets AL CURRENT...
A: Accounting Concepts are:- 1)Entity Concept 2)Money Measurement Concept 3)Periodicity Concept 4)Accru...
Q: PARE Company produces and sells a special powder named "CC". Actual and Proj and contribution margin...
A: Market share (MS) refers to the aggregate sales % (percentage) within the industry generated through...
Q: need to know how to calculate the gain on the equipment sold in part C The balance sheets of HiROE ...
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage a...
Q: 25. How much is the overvaluation in branch's ending inventory as of December 31, 2020? А. C. 15,040...
A: We are given information from the books and records from the home office as well as branch as on 31s...
Q: Practice Exercises - Stock Options On November 1, 2020, Pronghorn Company adopted a stock-option pla...
A: The question is based on the concept of Financial Accounting
Q: hoose the correct answer: 1. Trading securities are held with the intention of being sold in a shor...
A: Solution Concept Debt securities held to maturity is accounted using amortized cost Debt securities ...
Q: Which of the following is not a characteristic of a financial asset held for trading? a. It is acqui...
A: Trading in financial instrument include assets such as stocks bonds mutual fund. the financial asset...
Q: Which of the following reclassifications of financial assets is permitted under PFRS 9? a. reclassif...
A: Financial Assets- Financial Assets are investment assets or non-physical assets whose value is estab...
Q: 1. (cont.) ASSETS Bank A/R-M. Armota A/RF. Morsi 101 110 111 Supplies 120 Equipment 125 Automobile 1...
A: Bank Capital 8000 Rent Expense 465 M. Aromta 300 T.J. Chan, Drawings 200 Wages Expense 400...
Q: A standard stop sign is a regular octagon with a perimeter of 100.8 inches. The length of one side o...
A: A regular Octagon has 8 equal sides.
Q: Sales revenue $350,000 Accounts receivable $280,000 Ending inventory $230,000 Cost of goods so...
A: Gross profit: Difference between the sales and the cost of goods sold is called gross profit. Gross ...
Q: how do you find the WACC for 2006 given the following information: Operating results 2004 2005 2006...
A: WACC = (1-t) rD (D/V) + rE (E/V) T= Tax rate rD = Debt percentage rE = Equity percentage V = value o...
Q: Explain different methods for cash transactions and the costs associated with each. How these costs ...
A: Cash-basis of accounting- When transactions are made in cash, the cash basis of accounting is used t...
Q: Exercise 13.. Debit or Credit Sophie Lacson started her own consulting firm, Lacson Consulting, on S...
A: Recording of data with the account and amount is necessary to create ledger account ( T- account ) a...
Q: . How do the relationships between the balance sheet, income statement, job cost ledger, and equipm...
A: A balance sheet is a financial statement which shows a company's assets, liabilities, and shareholde...
Q: choose the correct answer: Equity security acquired for trading should be measured at reporting dat...
A: Equity Securities Held for Trading Equity securities which are held for trading purpose which can be...
Q: Accrued, but unrecorded and unpaid Salaries amounted to $14,000. Account name: Cash Accounts re...
A: Accrued expense means expense have been incurred but not yet paid and are liability for the company....
Q: Question Content Area Equivalent Units of Production The Converting Department of Hopkinsville Compa...
A: Solution:- Calculation of Number of Equivalent units of production as follows under:- Note:- 1) 30% ...
Q: Choose the correct answer: An investor using the equity method may have an acquisition price in exc...
A: Solution Concept When acquisition price is greater than share in the net assets at carrying value o...
Q: Cullumber Corporation had the following 2020 income statement. Sales revenue $213,000 Cost of go...
A: Under direct method of cash flow statement, cash receipts and cash expenses are directly considered ...
Q: Marigold Corp. will receive $720000 in a future year. If the future receipt is discounted at an inte...
A: The nominal future sum of money that a given sum of money is "worth" at a certain time in the future...
Q: Johnson Company adds materials, 50% at the start of the process and 50% at the end of the process in...
A:
Q: On January 1, 2019, Pigero Company took 3-year, P4,000,000 loan from a bank. The loan agreement requ...
A: Computation of the current liability to the loan in Pigero's 2019 year end financial statement is a...
Q: Relax Spa Company is engaged in providing facial and body treatment in a spa centre. Customers are ...
A: 9) No entry is required in this case because the equipment is purchased for personal use shall not b...
Q: Condensed financial data of Novak Company for 2020 and 2019 are presented below. NOVAK COMPANY COMP...
A: Cash flow statement shows the effect of changes in income statement items and balance sheet items on...
Q: E7-12 (Algo) Using FIFO for Multiproduct Inventory Transactions (Chapters 6 and 7) [LO 6-3, LO 6-4, ...
A: Gross profit = Sales revenue - Cost of goods sold Gross profit percentage = Gross profit * 100 / Sal...
Q: Billings Company has the following information available for September 2017. Unit selling price of ...
A: Cost volume profit analysis is the technique used by the management for decision-making. It includes...
Q: Söle Proprietors For partnership, and any deficiency shall be paid in cash. Gabriel and Lucifer deci...
A: When two or more persons join together to run any business activity, such joining is known as partne...
Q: Instruction: For each transaction, indicate whether the assets (A), liabilities (L) or owner's equit...
A: The balance sheet represents the financial position of the company that involves the assets, liabili...
Q: 2.A partially completed summary of financial data is given below. The data pertain to the fundamenta...
A: Assets = Liabilities + Equity or , Liabilities = Assets - Equity Equity at the end = Equity in the ...
Q: -3, LO 6-4, LO 7-3] Skip to question [The following information applies to the questions display...
A: JF termed as Journal entries which are reported into the day book of business and it includes the da...
Q: Condensed financial data of Novak Company for 2020 and 2019 are presented below. NOVAK COMPANY COMP...
A: Depreciation expense = 1,220 - 1,190 = 30 Cash proceeds from issue of common share = 1,890 - 1,710 -...
Q: Equivalent Units of Production The Converting Department of Worley Company had 720 units in work in ...
A: Worley Company Number of Equivalent Units of Production Whole units Direct materials Equival...
Q: Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has...
A: A cash budget is prepared to estimate the total cash received and total cash disbursement on the bas...
Q: During 2021, Perez Co. purchased 3,000 shares of Corpuz Corp. ordinary shares for P40,300 as a short...
A: Securities of an company when purchased for investment purposes ae known as investment securities. S...
Q: On 1 July 2021, The Company borrowed $84,000 by signing a 2-year note payable at 8% annual interest...
A:
Q: P1,500 of supplies on hand at the end of 2009. During 2010, P,2750 of supplies were purchased. A cou...
A: The purchase goods are done by supplier. so there will be stock which will be opening and supplie...
Q: accounting income (income sta eincome (tax return) : 25% s each year include $30 million fro e polic...
A: Taxable income refers to the sum value of money gained by an entity on which the authorized governme...
Q: In June of the current year, Department 2 (last department) received 80,000 units from Department 1....
A: Cost of goods manufactured shows the production cost of the goods that are completed and ready for s...
Q: Assessing control risk begins with understanding entity-level controls. a. True
A: Control risk is the risk that occurred due to the misstatement in the financial statement that would...
Q: Which should be recorded in accounts receivable? a. receivables from officers b. receivables from ...
A: Accounts Receivable refers to the amount owed by the customers to a business for purchase of goods o...
Q: P1,200,000. At that date, Harley had the following book and Book Value Market Val blon
A: Retained earnings are the amount that is left after paying all the costs, income taxes, and stockhol...
Q: or the month of January 2022, PBB Company reported the following production data for Finishing Depar...
A: Cost of Goods Manufactured Direct Material Add: Purchases 75000*12.7 952,500 Add...
Q: You are a financial Manager of Chevron Corp. You need to assess the effectiveness of working capital...
A: Formula: Inventory Turnover = Cost of sales / Average Inventory
Q: a.) At what amount should the asset be recorded on January 1,2020? b.) Prepare an amortization table...
A: Shirley Corporation leased a machinery from Jeol Company for 5 year lease term at annual rent payme...
Q: The controller of Norton Industries has collected the following monthly expense data for use in anal...
A: High low method: Variable cost per hour= (Highest activity cost - Lowest activity cost) / (Highest a...
Q: Stanford issues bonds dated January 1, 2019, with a par value of $250,000. The bonds' annual contrac...
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is ...
Q: PROBLEM 1 (Income Statement). Presented here are the components in Sanders Company's income statemen...
A: The income statement is prepared to record revenue and expenses for the current period and find the ...
Q: At 31 March 2015, the balance of the Cash account according to the records of Harmony Company was $...
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with ...
Q: . ABC will be issuing a 4% P20,000,000-face value bonds. The underwriter will be charging 2% of face...
A: Solution Working note Underwriting commission =face value *2% ...
Direct Comparison Using Book Values
You would like to make a direct comparison between MARK Inc. and MIKE Inc. stocks. MARK and MIKE shares are valued at 50 and 60 respectively. MARK has a total book value of 54,000,000 for its 1,200,000 outstanding ordinary shares.
On the other hand, MIKE has a total book value of 208,000,000 for its 4,000,000 outstanding ordinary shares.
Determine by how much MIKE share/ or the MIKE firm is over/ (undervalued)
Note: undervaluation positive and overvaluation negative
Step by step
Solved in 2 steps
- Direct Comparison Using Book Values: You would like to make a direct comparison between Maligaya Co. and Masaya Inc. stocks. Maligaya and Masaya shares are valued at P50 and P60 respectively. Maligaya has total book value of P54,000,000 for its 1,200,000 outstanding ordinary shares. On the other hand, Masaya has total book value of P208,000,000 for its 4,000,000 outstanding ordinary shares. Compared to Masaya, a Maligaya share is over/(under) valued by how much?A. Find the net proceeds of the stocks on the table below. Expenses Name of Stock Shares Held Selling Price per Share (Commission, taxes and Fees) Net Proceeds 1. Food Corporation 2. Property Holdings 3. Power Corporation 4.Transportation Corporation 100 P1,040.00 P2,640.00 250 P500.00 P1,720.00 80 P1,480.00 P1,880.00 300 P320.00 P2,240.00The balance sheets for Larry underwood motors shows a book value of stockholders equity book value per share x total shares outstanding of $1349000. Furthermore the firms income statement for the year just ended has a net income of $598000, which is $0.285 per share of common stock outstanding. The price earnings ratio for firms similar to underwood motors is 18.71. A. What price would you expect underwood motors shares to sell for ? The market price per share is $ round to the nearest cent.
- A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets Cash Operating Assets 600 1000 400 1200 If the firm has 110. find the # of outstanding shares remaining after it repurchases 120 worth of shares: (round your answer to the nearest 0.01)ed A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets Cash Operating Assets 600 1000 400 1200 If the firm has 300, find its fair share price after it repurchases 100 worth of shares: (round your answer to the nearest 0.01)The following financial information is available for Flintlock Corporation. (in millions) Average common stockholders' equity Dividends declared for common stockholders Dividends declared for preferred stockholders Net income BIU T₂ T² Ix !!! 111 2022 lil $2,532 298 40 504 Calculate the payout ratio and return on common stockholders' equity for 2022 and 2021. Comment on your findings. W 2021 $2,591 144 611 40 555 트 M II á TT ¶ O Word(s)
- Trenton Company has provided the following Information: - Net income, $320,000; • Preferred shares issued, 6,800; Weighted average number of shares of common stock Issued, 24,800; • Cash dividends declared and paid on common stock, $38,000; • Market price per share, $44; Weighted average number of treasury shares of common stock, 4,800. What is Trenton's price/earnings ratio? Multiple Choice 2.75 5.23 4.07 3.41NAME Herbalife Nutrition Herc Holdings Heritage Insurance Holdings HRTG Hersha Hospitality Trust CIA HT Hershey HSY HTZ SYMBOL CLOSE NET CHG 57.94 -1.39 26.86 -0.71 14.57 -0.38 Hertz Global Holdings Hess Corp. Hess Midstream Partners HLF HRI HES HESM Hewlett Packard Enterprise HPE 16.59 -0.16 106.24 0.80 -0.77 13.27 42.39 0.15 17.87 0.25 13.18 -0.28 VOLUME DIV YIELD P/E 1,149,773 60.41 389,826 72.99 81,929 19.15 732,879 24.16 1,145,889 114.63 52 WK 52 WK HIGH LOW 34.16 1.20 2.07 47.75 -1.71 24.16 3.10 3.35 12.85 0.24 1.65 22.01 -1.02 2,965,201 25.14 16.50 1.12 6.75 ...dd -5.42 89.10 2.89 2.72 22.00 -0.88 13.01 2.24 -2.78 35.59 1.00 2.36 ...dd 47,899 24.51 16.17 1.43 8.00 14.60 12.09 0.45 3.41 11.46 5,969,511 74.81 11,756,695 19.48 **** **** YTD %CHG Figure 2.8 Listing of stocks traded on the New York Stock Exchange Source: WSJ Online, January 4, 2019. 4.67 5.24 -0.23The following question is based on the following information about the stocks of Whitestone REIT, HCC Insurance Holdings, Inc., and SanDisk Corporation.† Price($) Dividend Yield(%) WSR(WSR Whitestone REIT) 16 7 HCC(HCC Insurance Holdings, Inc.) 56 2 SNDK(SanDisk Corporation) 80 2 You invested a total of $12,400 in shares of the three stocks at the given prices, and expected to earn $328 in annual dividends. If you purchased a total of 250 shares, how many shares of each stock did you purchase? WSR shares = HCC shares = SNDK shares =
- Compute the Values of an equity share and of preference share of each of the following companies: (a) When a few shares are sold and (b) When controlling shares are to be sold. Following information is furnished: Company A Company B $ Profit after tax 10,00,000 10,00,000 12% Preference Capital (Shares of $ 100 each) 10,00,000 20,00,000 Equity Capital ( Shares of $ 10 each ) 50,00,000 40,00,000 Assume that market expectation is 15% and 80% of profits are distributed.The following is the information on preferred stock issued by Huntington Power Co. Calculate the cost of preferred stock for the firm. Preferred Stock: Selling for $98. Dividends are $7 a share. a. 6.12% b. 5.45% c. 7.14% d. 9.57%The balance sheet for Larry Underwood Motors shows a book value of stockholders’ equity (book value per share × total shares out- standing) of $1,300,000. Furthermore, the firm’s income statement for the year just ended has a net income of $500,000, which is $0.25 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 20. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood’s shares?