A balance sheet balances assets with their sources of debt and equity financing.

If a
corporation has assets equal to $5,200,000 and a debt ratio of 75​%, how much debt does the
corporation have on its​books?

Total Assests $ 5,200,000

Debr ratio 75%
Total Debt $ 3,900,000
Angina, Inc., has 55 million shares outstanding. The firm is considering issuing an additional 1.0 million
shares.
After selling these shares at their ​$20 per share offering price and netting 95​% of the sale​proceeds, the
firm is obligated by an earlier agreement to sell an additional 250,000 shares at 90​% of the offering
price.
In​total, how much cash will the firm net from these stock​sales?

Issuing additional shares

Offering price
Sales proceeds, net (95% of offering price) $ 19,000,000
Earlier agreement obligation: 5,000,000
Additional shares to sale 1,000,000 $ 20.00
Offering price (90% offering price) 250,000 90%
Net amount obtained $ 4,500,000

Total Cash obtained $ 23,500,000

$ 20,000,000.00 95%
$ 18.00
Figurate Industries has 750,000 shares of cumulative preferred stock outstanding. It has passed the last
three quarterly dividends of ​$2.50 per share and now​(at the end of the current​quarter) wishes to
distribute a total of ​$12 million to its shareholders.
If Figurate has 3.0 million shares of common stock​outstanding, how large a​per-share common stock
dividend will it be able to​pay?

Amount to distribute to stockholders $ 750,000

Dividends of preferred stocks 2.50
Amount available ti common stockholders $ 1,875,000
# of common shares outstanding 3,000,000.00
Dividen per common share $ 0.63
assed the last
wishes to

mmon stock
Today the common stock of Gresham Technology closed at ​$24.60
per​share, down ​$0.35 from yesterday.
If the company has 4.6 million shares outstanding and annual earnings of ​$11.21 ​
million, what is its​P/E ratio​today? What was its​P/E ratio​yesterday?

Stock price (Today) $ 24.60

Stock price (Yesterday) $ 24.95
Shares outstanding 4,600,000
Annual earnings $ 11,210,000
P/E today $ 10.09
P/E yestarday $ 10.24

EPS $ 2.44
Stacker Weight Loss currently pays an annual​year-end dividend of ​$1.20 per share. It plans
to increase this dividend by 5.0 % next year and maintain it at the new level for the
foreseeable future.
If the required return on this​firm's stock is 8%​, what is the value of​Stacker's stock?

Annual year-end dividend per share $ 1.20

Expected increase (next year) 5% $ 0.06
Required return 8% $ 0.10
Sotock Value:
Expected dividend per share (next year) $ 1.26
Estimated stock price $ 1.30
Brash Corporation initiated a new corporate strategy that fixes its annual dividend at ​$2.25 per
share forever. If the​risk-free rate is 4.5​% and the risk premium on​Brash's stock is 10.8​%, what is
the value of​Brash's stock?

Corporate strategy fixed annual dividen d $ 2.25

Risk-free rate 4.50%
Risk premium 10.80%
Required rate of return (cost of capital) 15.30%
Target price of Brash's stock $ 50.00