Question
Examine the following book-value balance sheet for University Products, Inc. The preferred stock currently sells for $12 per share and the common stock for $16
| Examine the following book-value balance sheet for University Products, Inc. The preferred stock currently sells for $12 per share and the common stock for $16 per share. |
| BOOK VALUE BALANCE SHEET (all values in millions) | |||||
| Assets | Liabilities and Net Worth | ||||
| Cash and short-term securities | $ | 1.0 | Bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 7%) | $ | 5.0 |
| Accounts receivable | 3.0 | Preferred stock (par value $10 per share) | 2.0 | ||
| Inventories | 7.0 | Common stock (par value $0.2) | 0.2 | ||
| Plant and equipment | 21.0 | Additional paid-in stockholders | |||
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Internal Auditing Principles And Techniques
Authors: Richard L. Ratliff, W. Wallace, Walter B. Mcfarland, J. Loeboecke
2nd Edition
0894133268, 978-0894133268
