Teller Pen is engaged in the manufacture of mechanical pens and pencils, porous pens, and a recently
Question:
Teller Pen is engaged in the manufacture of mechanical pens and pencils, porous pens, and a recently developed line of disposable lighters. Since the firm sells to a great many distributors, and its products are all considered nondurable consumer goods, sales are relatively stable. The current price of the company’s stock, which is listed on the New York Stock Exchange, is $25. The most recent earnings and dividends per share are $3,10 and $1.50, respectively. The rate of growth in sales, earnings, and dividends in the past few years has averaged 5 percent. Teller Pen has total assets of $400 million. Current liabilities, which consist primarily of accounts payable and accruals are $28 million, long-term debt of $83 million; and common equity totals $289 million. An additional $33 million of external funds is required to build and equip a new disposable lighter manufacturing complex in central Ohio and to supply the new facility with working capital.
Choose the correct financing method.
A. Convertible Debenture
B. Preferred Stock (nonconvertible)
Business Law Legal Environment Online Commerce Business Ethics and International Issues
ISBN: 978-0134004006
9th edition
Authors: Henry R. Cheeseman