Instruction
(SHOW ALL CALCULATIONS FOR EACH PROBLEM):
1. Building a Balance Sheet Culligan, Inc., has current assets of $5,500, net fixed assets of $27,000, current liabilities of $4,000, and long-term debt of $15,000. What is the value of the shareholder's equity account for this firm? How much is net working capital?
2. Market Values and Book Values Klingon Cruises, Inc., purchased new cloaking machinery three years ago for $10.5 million. The machinery can be sold to the Romulans today for $6.5 million. Klingon's current balance sheet shows net fixed assets of $6 million, current liabilities of $2.2 million, and net working capital of $850,000. If all the current assets were liquidated today, the company would receive $2.9 million in cash. What is the book value of Klingon's assets today? What is the market value?
3. Simple Interest versus Compound Interest First City Bank pays 10% simple interest on its savings account balances; whereas, Second City Bank pays 10% interest compounded annually. If you made $6,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years; and, what is the amount for First City Bank? What is the simple interest amount for First City Bank; What is the amount of compound interest for Second City Bank? So, which bank would earn the most interest/money...????
4. Calculating Returns: Suppose a stock had an initial price of $80 per share, paid a dividend of $1.50 per share during the year and had an ending share price of $85. Compute the percentage total. Calculating Yields: Based on the aforementioned information, what was the dividend yield? And, what is the capital gains yield?
5. Dividend and Stock Prices: Your portfolio is 300 shares of Blue Morning, Inc. The stock currently sells for $100 per share. The company has announced a dividend of $3.00 per share with an ex-dividend date of April 19th. Assuming no taxes, how much will your stock be worth on April 19th? Dividend and Stock Prices: It is April 19th. Based on the aforementioned information, what is your total portfolio value?