Question: need solution will rate 1. Simpson corporation is planning an equity issue to finance a new project. Simpson lands to issue 100,000 shares of stock.
need solution will rate
1. Simpson corporation is planning an equity issue to finance a new project. Simpson lands to issue 100,000 shares of stock. Projected EPS after completion of the project is $13 and the total shares outstanding will be 200,000. what are the project after-tax earnings after completion of the project
A. 2.4 million
B. 2.6 million
C. 2.8 million
D. Non of the above
2.
The post merger P/E for smith corporation is predicted to be 12. The EPS for the previous 4 quarters total $2.5 for smith. The number of shares outstanding is 100,000. the earning valuation of smith is
A. 1 million
B. 3 million
C. 5 million
D. None of the above
3.
28.Which of the following ratios is not a liquidity ratio?
a.ROE
b.Current
c.Quick
d.Receivable turnover
e.None of the above
4.
Assets are 500 and expected to grow by 14%. Liabilities and owners equity are 500 and expected grow by 11%. the plug for the first pro
Liability plug
Cash plug
Neither A nor B
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