Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

2.- Early in 2010, Samsung was formed with authorization to issue 100,000 shares of 10 par value common stock and 20,000 shares of 90 par

image text in transcribed
image text in transcribed
2.- Early in 2010, Samsung was formed with authorization to issue 100,000 shares of 10 par value common stock and 20,000 shares of 90 par value cumulative preferred stock.
During 2010, all the preferred stock was issued at par, and 70,000 shares of common stock were sold for 30 per share. The preferred stock is entitled to a dividend equal to 11 percent of its par value before any dividends are paid on the common stock.
During its first five years of business (2010 through 2014), the company earned income totaling ,5000,000 and paid dividends of 1s per share each year on the common stock outstanding.
On January 1, 2012, the company purchased 1,000 shares of its own common stock in the open market for 30,000. On January 2, 2014, it reissued 800 shares of this treasury stock for 30,000. The remaining 200 shares were still held in treasury at December 31, 2014.
1.- Prepare the stockholders equity section of the balance sheet at December 31, 2014. Include a supporting schedule showing (1) your computation of any paid-in capital on treasury stock and (2) retained earnings at the balance sheet date. (36 points)
2.-As of December 31, 2014, compute the companys book value per share of common stock. (6 points)
3.- In the event that you, acting as CFO of a Public listed company want to make an investment explain the difference between choosing:
a)Bank loan with covenants
b) Issuing Bonds
c) Issuing shares
d) Issuing preferred Stock.
What would be the impact on Net income, EPS, PE ratio, Debt to Equity, Debt to Assets.
(16 points)
4.-What is the difference between bonds issued at discount, par or premium. (5 points)
During its first five years of busins (2010 through 2014), the company earned income totaling 6.5000,000 and paid dividends of tes pershan each year on the common stock outstanding On January 1, 2012, the company purchased 1.000 shares of its own common stock in the open market for 30.000. Onuary 2 2014, reissund 800 shares of this reasury stock for 30,000. The remaining 200 shares were still trany at December 31, 2014 1. Prepare the stockholders equity section of the balance sheet December 3, 2016. Includes supporting schedule showing in your computation of any paid in capital on trasury stock and (2) randerings to shoot date.com 2. As of December 31, 2014. compute the company's book value per the common stock points) 3.- In the event that you acting as CFO of a Publicsted company want to make an investment explainence between thing Bank loan with covenants D) issuing Bonds c) issuing shares dising preferred Stock What would be the impact on Net income, EPS, Prato Dettoly Detit te Assets During its first five years of business (2010 through 2014), the company earned income totaling ,5000,000 and paid dividends of 16s per share cach year on the common stock outstanding. On January 1, 2012, the company purchased 1,000 shares of its own common stock in the open market for 30,000. On January 2, 2014, it reissued 800 shares of this treasury stock for 30,000. The remaining 200 shares were still held in treasury at December 31, 2014. 1- Prepare the stockholders' equity section of the balance sheet at December 31, 2014. Include a supporting schedule showing (1) your computation of any paid-in capital on treasury stock and (2) retained earnings at the balance sheet date. (36 points) 2. As of December 31, 2014, compute the company's book value per share of common stock. (6 points) 3.- In the event that you, acting as CFO of a Public listed company want to make an investment explain the difference between choosing aBank loan with covenants b) Issuing Bonds c) Issuing shares d) Issuing preferred Stock I What would be the impact on Net Income, EPS, PE ratio, Debt to Equity, Debt to Assets (16 points) 4.What is the difference between bonds issued at discount, par or premium. (5 points) During its first five years of busins (2010 through 2014), the company earned income totaling 6.5000,000 and paid dividends of tes pershan each year on the common stock outstanding On January 1, 2012, the company purchased 1.000 shares of its own common stock in the open market for 30.000. Onuary 2 2014, reissund 800 shares of this reasury stock for 30,000. The remaining 200 shares were still trany at December 31, 2014 1. Prepare the stockholders equity section of the balance sheet December 3, 2016. Includes supporting schedule showing in your computation of any paid in capital on trasury stock and (2) randerings to shoot date.com 2. As of December 31, 2014. compute the company's book value per the common stock points) 3.- In the event that you acting as CFO of a Publicsted company want to make an investment explainence between thing Bank loan with covenants D) issuing Bonds c) issuing shares dising preferred Stock What would be the impact on Net income, EPS, Prato Dettoly Detit te Assets During its first five years of business (2010 through 2014), the company earned income totaling ,5000,000 and paid dividends of 16s per share cach year on the common stock outstanding. On January 1, 2012, the company purchased 1,000 shares of its own common stock in the open market for 30,000. On January 2, 2014, it reissued 800 shares of this treasury stock for 30,000. The remaining 200 shares were still held in treasury at December 31, 2014. 1- Prepare the stockholders' equity section of the balance sheet at December 31, 2014. Include a supporting schedule showing (1) your computation of any paid-in capital on treasury stock and (2) retained earnings at the balance sheet date. (36 points) 2. As of December 31, 2014, compute the company's book value per share of common stock. (6 points) 3.- In the event that you, acting as CFO of a Public listed company want to make an investment explain the difference between choosing aBank loan with covenants b) Issuing Bonds c) Issuing shares d) Issuing preferred Stock I What would be the impact on Net Income, EPS, PE ratio, Debt to Equity, Debt to Assets (16 points) 4.What is the difference between bonds issued at discount, par or premium. (5 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions