Accounting Help for College and University Students

Calculating the effects of stock splits and an increase in stock dividends on share prices.

Acme Corporation currently has 500,000 shares of stock outstanding that sell for $40 per share. Assuming no market imperfections or tax effects exist, what will the share price be after a two for one stock split? What will the share price be if, instead of the stock split, the company issues a 40 percent stock dividend?

Expected Return & Standard Deviation of return

A portfolio is invested 40% in stock R, 35% in Stock S, and 25% in Stock T. State of Probability of Rate of Return if state occurs Economy State of Economy Stock R Stock S Stock T Boom 0.25 0.3 0.4 0.25 Good 0.4 0.1 0.15 0.1 Poor 0.25 0 -0.05 -0.1 Bust 0.1 -0.25 -0.15 -0.2 What is the expected return of the p ...continues

Working with shares and percentage spread.

Acme Corporation needs to raise $700 million to finance construction of a new manufacturing facility. The company will sell new shares of common stock via a general cash offering to raise the needed funds. If the offer price is $50 per share and the company's underwriters charge a 6 percent spread, how many shares need to be s ...continues

Operating & Cash Cycles

Prob 7 Consider the following financial statement information for the Acme Corporation: Item Beginning Ending Inventory $120,000,000 $105,000,000 Accounts receivable 80,000,000 ...continues

Cash Budget (x8)

Please see attached spreadsheet for information. The company predicts that 4 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 56 percent will be collected in the following month. Credit purchases will be paid for in the month following ...continues

Working with cash discounts.

You place an order for 1,000 units of inventory at a price of $350 per unit. The supplier offers terms of 2/10, net 30. Answer the following questions about payment. a. If you take the full period to pay, how much should you remit? b. How soon must you pay to get the discount? c. What will be the amount of the di ...continues

Working with currency exchange.

The yen trades at 130 yen per dollar in Tokyo and 125 yen per dollar in New York. How much profit could you earn on a trade in which you invested $100,000?

Determining the type of float for a deposited check.

You have $125,000.00 on deposit with no outstanding checks or uncleared deposits. If you deposit a check for $110,000.00 does this create a disbursement float or a collection float? What is your available balance? Book balance?

Calculating Net Float (16-6)

Each business day, on average, a company writes checks totaqling $21,000 to pay its suppliers. The usual clearing time for checks is five days. Meanwhile the company is receiving payments from its customers each day in the form of checks, totalling $38,000. The cash from the payments is available to the firm after 2 days. a ...continues

Cash discounts- cost of not taking the discount

You place an order for 400 units of inventory at a unit price of $50. The supplier offers terms of 2/10, net 40. a. How long do you have to pay before the account is overdue? If you take the full period, how much should you remit? b. What is the discount being offered? How quickly must you pay to get the discount? If you ...continues