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Hi I need help with some Managerial Finance Assignment please... 1. Rust Pipe Co. was established in 1994. Four years later the company went public.

Hi I need help with some Managerial Finance Assignment please...

image text in transcribed 1. Rust Pipe Co. was established in 1994. Four years later the company went public. At that time, Robert Rust, the original owner, decided to establish two classes of stock. The first represents Class A founders' stock and is entitled to six votes per share. The normally traded common stock, designated as Class B, is entitled to one vote per share. In late 2010, Mr. Stone, an investor, was considering purchasing shares in Rust Pipe Co. While he knew the existence of founders' shares were not often present in other companies, he decided to buy the shares anyway because of a new technology Rust Pipe had developed to improve the flow of liquids through pipes. Of the 1,300,000 total shares currently outstanding, the original founder's family owns 51,525 shares. What is the percentage of the founder's family votes to Class B votes? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) 2. 3. Moon and Sons Inc. earned $175 million last year and retained $145 million. What is the payout ratio? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) 5.The Omega Corporation has some excess cash that it would like to invest in marketable securities for a long-term hold. Its Vice-President of Finance is considering three investments: (a) Treasury bonds at a 7 percent yield; (b) corporate bonds at a 13 percent yield; or (c) preferred stock at an 9 percent yield. Omega Corporation is in a 40 percent tax bracket and the tax rate on dividends is 10 percent. a-1. Compute the aftertax yields for the three investment options. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) 6.Wilson Pharmaceuticals' stock has done very well in the market during the last three years. It has risen from $65 to $90 per share. The firm's current statement of stockholders' equity is as follows: Common stock (3 million shares issued at par value of $10 per share) Paid-in capital in excess of par Retained earnings Net worth $ 30,000,000 18,000,000 42,000,000 $ 90,000,000 A.How many shares would be outstanding after a three-for-one stock split? (Do not round intermediate calculations. Input your answer in millions (e.g., $1.23 million should be entered as "1.23").) B.What would be its par value? (Do not round intermediate calculations and round your answer to 2 decimal places.) c. Assume that Wilson earned $13 million. What would its earnings per share be before and after the two-for-one stock split? After the three-for-one stock split? (Do not round intermediate calculations and round your answers to 2 decimal places.) d. What would be the price per share after the two-for-one stock split? After the three-for-one stock split? (Assume that the price-earnings ratio of 20.77 stays the same.) (Do not round intermediate calculations and round your answers to 2 decimal places.)

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