Trinity Hospitals five year plan includes development of an orthopedic center, cardiovascular center and a cancer center. Task four asks for an assessment of the viability of one of these service lines. By assuming the role of the hospital CEO, I will evaluate the orthopedic center service line and present the findings to the board of directors for their approval. Demand for Orthopedic Service Line As identified in the Trinity Community Hospital’s Community Needs Assessment, the demand for orthopedic services in the area is expected to increase by 46% in the next five years. Inpatient joint and spine procedure are projected to increase by 30% and outpatient joint and spine procedures are expected to increase by 350%.
Also CHB was prepared to invest about $5 million in Spyder and was willing to accept a minority stake, the company was intent on arranging a deal which would yield a minimum 30% return. Both sides agreed to deal that CHB investing a total of $4.5 million in two stages. Upon the completion of the deal, the firm would put in $2.5 million in exchange for preferred stock convertible into 22% of Spyder common stock. Later CHB have the option to invest an additional $2 million – half of which would be a cash payment to be split by Jacobs and his partners. If CHB elected to invest at both stages, it’s stake would increase to 37.9% of common stock.
Sept. 1 | Purchased inventory from Orion Company on account for $50,000. Darby records purchases gross and uses a periodic inventory system. | Oct. 1 | Issued a $50,000, 12-month, 8% note to Orion in payment of account. | Oct. 1 | Borrowed $75,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $81,000 note. | * Instructions (a) Prepare journal entries for the selected transactions above.
On March 30, 2009 they decide to resell 50,000 shares at a price of $13 per share. There is a current balance in the APIC-share repurchase account of $40,000. Prepare the necessary journal entries to record these transactions if Tom, Inc. classifies the repurchase as treasury stock. Original issue
The compensation expense for 2011 will be (Round off turnover calculations to three decimal places and answer to the nearest dollar.) ** $77,468 | $80,022 | $82,575 | $160,043 | 4. On January 1, 2010, Wilson Corporation granted Emelia Walker, its president, a compensatory stock option plan to purchase 8,000 shares of Wilson's $10 par common stock. The option price is $25 per share and the option has a fair value of $7 per option, which is exercisable on January 1, 2014, after four years of service. How much compensation expense should Wilson recognize on December 31, 2010?
SolvGen entered into a five-year research and development agreement with Careway Pharma Inc. (Careway) on January 1, 2010. The research and development agreement calls for SolvGen to use its best efforts to further develop proprietary instrument systems that have been under development for nearly 18 months and are expected to be ready for commercial launch in the near future. In connection with executing the research and development arrangement, SolvGen and Careway also entered into a five-year license and distribution agreement dated January 1, 2010. Under the terms of the research and development agreement, SolvGen retains all intellectual rights to the results of the research and development agreement (even in the event of default by the Company). In connection with this agreement, SolvGen is entitled to the following nonrefundable milestone payments from Careway: 1.
Direct Drugs Inc. (Direct) is planning to acquire SolvGen Inc. (SolvGen or the Company), a publicly owned company, during the fourth quarter of fiscal year ending December 31, 2012. Direct has engaged our audit engagement team to perform due diligence procedures, with an emphasis on the review of two separate material agreements: (1) a research and development agreement and (2) a license and distribution agreement, both executed by SolvGen during the first quarter of fiscal year 2012. Direct’s management provided the engagement team with the following memo describing the Company’s revenue recognition policy: MEMO To: Audit Engagement Team From: CFO, SolvGen Inc. Subject: Revenue Recognition for Research and Development and License and Distribution Agreements Date: November 30, 2012 SolvGen Inc. (the Company), an SEC registrant, is a pharmaceutical development company. SolvGen entered into a five-year research and development agreement with Careway Pharma Inc. (Careway) on January 1, 2012. The research and development agreement calls for SolvGen to use its best efforts to further develop proprietary instrument systems that have been under development for nearly 18 months and are expected to be ready for commercial launch in the near future.
There were three options that the board of directors debated over: issuing new common stock, issuing preferred stock or selling bonds. As Ms. Thorp, evaluate the impact of the bond issue and of the stock issue on the EPS. What are the risks in each alternative? The bond alternative arranges to sell $50 million in bonds to a California insurance company with an interest rate of 10 percent at maturity of 15 years. There is $2.5 million sinking fund required which leaves $12.5 million outstanding at maturity.
Option Valuation Under SBC’s proposal, Cephalon would purchase 2.5 million capped call options from SBC in exchange for 490,000 shares of Cephalon common stock. The final terms of the options were set on their date of issue, May 7, 1997. And the options were European-style with an expiration date of October 31, 1997. The strike price for the calls was set at $21.50 per share and the cap at $39.50 per share, so that Cephalon’s payoff per share was limited to $18. On the day the exchange was effected, the market value of the shares was $20 (Bloomberg).If the stock price were to rise to $40 after approval or decrease to $16 when FDA disapproved, using Binomial model, with current interest rates of 5.55%, we calculated the value of each call option—$3.39(Table 1).
Holy Angel Investors Inc., Silicon Valley, CA MEMO: To: Joseph Ratzinger From: Date: Re: Rational Footwear Investment Opportunity Executive Summary: Rational Footwear is a shoe manufacturing company that designs and plans to market and wholesale footwear with therapeutic benefits. The footwear is based on a clinically proven technology that stems from Stanford University’s Bio Motion Lab and claims to benefit not only people with current condition of osteoarthritis but also those who are predisposed to this medical condition. The total market potential is $4 billion. The initial investment phase of funding will require $2 Million worth of investment with a further capital investment of $2 million dollars based on market response. Customer Value Analysis: Buying decisions are based on what Customers value and how they purchase the product.