Compute the book value weights that the comptroller currently uses for the company’s capital structure. Common stock weight 28.6% Preferred stock weight 14.3% Long-term debt 57.1% c. Based on the suggestion that the focus should be on market values, compute the weights of debt, preferred stock, and common stock. MV debt weight 19.4% MV preferred weight 4.2% MV common stock weight 76.3% d. Are book value or market value weights better for calculating the firm’s weighted average cost of capital? Market value weights are better for calculating the firms WACC because market value is the worth today and is more like the current situation and it can change daily. 2. a.
Cash transactions from op, fin and inv o Were any stock options exercised? In which financial statement did you find this information? What are the components of this financial statement? Using the Statement of Cash Flow we can see that proceeds from the exercise of stock options totaled $1,826,816. The components of the statement of cash flow shows how changes in balance sheet and income accounts affect cash and cash equivalents, and breaks the analysis down into operating, investing, and financing activities.
C. What information about securities must companies disclose? Discuss how Merliss should report the proposed preferred stock issue. a. Dividend and liquidation preferences b. Participation rights c. Call prices and dates d. Conversion rates and dates e. Exercise prices and dates f. Sinking-fund requirements g. Unusual voting rights h. Contracts to issue additional shares i.
2. A Bond; is a loan amount lent to a Government, or business which pays a fixed interest rate for a fixed period of time. 3. A Mutual Fund; is a collection of investments managed by a professional investment firm, where investors can buy and sell shares of many different organizations or
Which of the following choices regarding the proprietary fund financial statements is true? A. The Statement of Net Assets (Balance Sheet) reflects equity as contributed equity and retained earnings. B. Normally, a reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements.
The second component is the cost of sales which includes the costs directly linked to providing the trade. For example this is the cost of buying the products. The formula for cost of sales is opening stock + purchases – closing stock. According to business alpha the cost of sales is 2,647,000. The final component of trading accounts is gross profit; gross profit is the amount of money that is left after the cost of goods sold has been taken away from the stock turnover.
Measurement and recognition concepts such as assumptions, principles, and constraints b. Qualitative characteristics of accounting information c. Elements of financial statements d. Objectives of financial reporting 27. The underlying theme of the conceptual framework
In January 1994, Canada, the United States and Mexico launched the North American Free Trade Agreement (NAFTA) and formed the world's largest free trade region. Canada’s goal for signing the agreement was simple: the agreement was to pave a road for Canada that expanded its trading field while providing a larger stage on which to demonstrate its economic expertise and leadership. The point in focus now is whether or not Canada has benefited from this agreement. Under NAFTA many sectors of the economy have been affected. These mainly include the agricultural, manufacturing and telecommunication sectors of the Canadian economy.
The Bank also monitors a set of core inflation measures, which strips out eight most volatile CPI components. This core measures allow the Bank to monitor temporary changes in total CPI inflation by focusing on the underlying trend in inflation. In this sense, core inflation is regularly monitored as an operational guide to help the Bank achieve the total CPI inflation target. The other most important element of Canada’s monetary policy framework is flexible exchange rate. A floating Canadian dollar allows Bank to pursue an independent monetary policy that is best suited to Canada’s economic circumstances and have its focus on achieving the inflation target.