Corporation owns a 90% interest in Sakal Corporation’s common stock. Throughout 2010‚ Sakal had 20‚000 shares of common stock outstanding and Pancino had 50‚000 shares of common stock outstanding. Sakal’s only dilutive security consists of 2‚500 stock options‚ with an exercise price of $20 per share. The average price of Sakal’s stock is $50 per share in 2010. The options are exercisable for one share of Sakal’s common stock. Pancino’s and Sakal’s separate net incomes for the year are $100‚000 and
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application for 15‚000 shares of Rs.100/- each. The share amount was payable as under : – Rs.20/- on Application Rs.30/- on Allotment Rs.20/- on First Call & Rs.30/- on Final Call Applications were received for 10‚000 shares. All moneys were called and duly received. Pass necessary journal entries and prepare ledger account and Balance Sheet. Q. 2 A Company issued Rs.5‚00‚000/- new capital divided into Rs.10/- shares at a premium of Rs.4/- per share payable as On Application Re.1/- per share On Allotment
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the Balance sheet of the Excellent Traders‚ a concern owned by Rama as at 30th April‚ 2009: Balance Sheet LIABILITIES AMOUNT ASSETS AMOUNT Creditors Capital Reserve 76‚080 3‚28‚000 80‚000 4‚84‚080 Fixed assets Currents assets Investment in Shares 1‚80‚000 2‚44‚080 60‚000 4‚84‚080 The following net profits were earned which included a fixed income from investments of Rs.4‚000 per annum. Rs. Year ended 30th April‚ 2006 64‚000 Year ended 30th April‚ 2007
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com/Occasional_Papers/OP78/op78.html What is buyback? Buyback is reverse of issue of shares by a company where it offers to take back its shares owned by the investors at a specified price; this offer can be binding or optional to the investors. Why companies buyback? * Unused Cash: If they have huge cash reserves with not many new profitable projects to invest in and if the company thinks the market price of its share is undervalued. Eg. Bajaj Auto went on a massive buy back in 2000 and Reliance’s
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INTRODUCTION OF SHARE TEA Share Tea Dining Business Corporate was founded in 1992 by Mr. Cheng Kai-Lung and we started off our business with to-go black tea and pearl milk tea drinks. With great comments and feedback from our customers Share Tea was known as good tea. Since then‚ we have expanded our branches all over the world and we have had great success as part of the tea-drinking sector. In 1992‚ the very first shop of Share Tea opened in Taipei City;three years later‚ Share Tea Corporation
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Strategy 2 Effects of $3 Billion in New Debt for Dividend or Stock Repurchase 2 a. Outstanding Shares 2 b. Book Value of Equity 2 c. Price per Share 2 d. Earnings per Share 3 e. Debt Interest Coverage Rations and Financial Flexibility 3 f. Outstanding Shares 3 Wrigley’s Current Weighted Average Cost of Capital (WACC) 4 Debt Proceeds to Pay a Dividend or Repurchase Shares 4 Wrigley’s Recapitalization 5 Appendices 5 i. Objectives This report seeks to answer the
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react if Gainesboro repurchased its shares? Should Gainesboro do so? Repurchasing shares or share buyback: – Open market repurchases (buy over time as other investors) – Tender offer (buy shares at a precise date) – Targeted repurchase (buy from major shareholder There are ways for shareholders to receive cash without being paid dividends. A firm can buy back some of its shares with the advantage being that most investors are not taxed as heavily on shares sold as they are on dividends received
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against the company into shares. The conversion or capitalization of debt into shares has various potential tax consequences. For companies with assessed losses‚ this may result in a reduction of the assessed loss. The reason for this is that the Income Tax Act provides that a taxpayer’s assessed loss must be reduced by the value of any benefit derived by it in consequence of a compromise or concession made with any creditor. OBJECTIVE • To study about shares and debentures‚ • To study
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2 MODELS FOR THE VALUATION OF SHARES. 2.1 The concept of a cost of equity The cost of equity is the cost to the company of providing equity holders with the return they require on their investment. The primary financial objective is to maximize the return to equity shareholders. This return is as the future dividend yield and capital growth. Until new shareholders become members of the company‚ the objective above is concerned with existing shareholders. Company management will need to offer
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What is Think‚ Pair‚ Share?Think-Pair-Share is a strategy designed to provide students with "food for thought" on a given topics enabling them to formulate individual ideas and share these ideas with another student. It is a learning strategy developed by Lyman and associates to encourage student classroom participation. Rather than using a basic recitation method in which a teacher poses a question and one student offers a response‚ Think-Pair-Share encourages a high degree of pupil response and
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