Problem 14.04 – Hartman Motors
Fundamentals of Financial Management, Concise
Brigham and Houston
11th Edition
Given assets, debt, equity, and a tax rate… find the unlevered beta.
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Given assets, debt, equity, and a tax rate… find the unlevered beta.
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Calculate how many new shares will be distributed after a stock dividend is declared, and determine how the common stock account, the capital surplus account, the retained earnings account and the total owners’ equity would change as a result of the stock dividend.
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Given various debt-to-capital ratios… calculate the ROIC and ROE for firm LL and firm HL
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If the company declares a stock split, determine the new number of shares outstanding and the new par value per share.
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Stockton Mineral Operations, Inc. (SMO) or Bermuda Triangle Corporation (BTC) currently has a certain number of shares of stock that sell for a certain price per share. Assuming no market imperfections or tax effects, what will the share price be after:
Calculate the new share price and the new number of shares outstanding for each scenario.
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Determine the gain or loss given a certain amount of watches, and determine the break-even point.
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Given different debt/capital ratios… determine the expected ROE, the standard deviation of ROE, and the CV
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Quin Corp. or Tempest, Inc. has a balance sheet with certain market values for cash, fixed assets, and equity. The company has a certain number of shares of stock outstanding and has declared a dividend of a certain amount per share. The stock will go ex-dividend tomorrow, and any tax effects are ignored. Calculate the stock price today and tomorrow, and determine the balance sheet after the dividends are paid.
NOTE: There are 2 versions of this problem! This version asks you to determine the stock price today and the stock price tomorrow. Then complete a balance sheet for the company.
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There are 2 versions of this problem! This version asks you to determine the effect of the transaction on the equity of the firm, the shares outstanding, and the share price after the repurchase.
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Determine the ex-dividend price for the manufacturing firm after a stock dividend, which is given as a percentage.
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