1. The firm believes that its stock price at December 31, 20X11, does not accurately reflect its intrinsic value on the same date. Assume that 20X11 dividends were $31,049.
2. 
   Calculate the intrinsic value of stock at year-end 20X11.
   Explain the pros and cons of purchasing the treasury stock at year-end 20X11.
   What is the dividend and capital gains yield for 20X12?  
   What is the dividend and capital gains yield for 20X14?
3. 
   
4.    
   1. 
      

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The Corporation Comparative Balance Sheet For the 12 Months Ended December 31 Cash Accounts Receivable Inventory Prepaid Insurance Total Current Assets Land Buildings Less: Accumulated Depreciation Net Buildings Total Long-Term Assets Total Assets Accounts Payable Salaries and Wages Payable Dividends Payable Notes Payable-Line of Credit Total Current Liabilities Notes Payable-Long Term Bonds Payable Less: Discount on Bonds Payable Net Bonds Payable Total Long-Term Liabilities Total Liabilities Contributed Capital Retained Earnings Treasury Stock Total Stockholders' Equity (SE) Total Liabilities and SE 20X11 710,000 494,000 526,000 46,000 20X10 625,000 450,000 487,000 51,000 1,776,000 1,613,000 1,520,000 1,340,000 2,530,000 2,440,000 -550,000 -480,000 5,276,000 284,000 83,000 47,044 212,000 1,980,000 1,960,000 1,930,000 3,500,000 3,300,000 3,330,000 4,786,000 4,913,000 277,000 74,000 37,995 230,000 20X9 560,000 410,000 443,000 43,000 626,044 618.995 2,090,587 1,609,831 1,000,000 1,000,000 -249,244 -263,260 750,756 736,740 2,841,343 2,346.571 3,467,387 2,965,566 500,000 500.000 3,424,613 2.679,434 -2,116,000 -1.232,000 1,808,613 1,947,434 5,276,000 4,913,000 1,456,000 1,400,000 2,350,000 -420,000 240,000 67,000 44,000 210,000 561,000 1,105,421 1,000,000 -275,973 724,027 1,829.448 2,390,448 500,000 1,983,552 -88.000 2,395,552 4,786,000 The Corporation Comparative Balance Sheet For the 12 Months Ended December 31 Cash Accounts Receivable Inventory Prepaid Insurance Total Current Assets Land Buildings Less: Accumulated Depreciation Net Buildings Total Long-Term Assets Total Assets Accounts Payable Salaries and Wages Payable Dividends Payable Notes Payable-Line of Credit Total Current Liabilities Notes Payable-Long Term Bonds Payable Less: Discount on Bonds Payable Net Bonds Payable Total Long-Term Liabilities Total Liabilities Contributed Capital Retained Earnings Treasury Stock Total Stockholders' Equity (SE) Total Liabilities and SE 20X11 710,000 494,000 526,000 46,000 20X10 625,000 450,000 487,000 51,000 1,776,000 1,613,000 1,520,000 1,340,000 2,530,000 2,440,000 -550,000 -480,000 5,276,000 284,000 83,000 47,044 212,000 1,980,000 1,960,000 1,930,000 3,500,000 3,300,000 3,330,000 4,786,000 4,913,000 277,000 74,000 37,995 230,000 20X9 560,000 410,000 443,000 43,000 626,044 618.995 2,090,587 1,609,831 1,000,000 1,000,000 -249,244 -263,260 750,756 736,740 2,841,343 2,346.571 3,467,387 2,965,566 500,000 500.000 3,424,613 2.679,434 -2,116,000 -1.232,000 1,808,613 1,947,434 5,276,000 4,913,000 1,456,000 1,400,000 2,350,000 -420,000 240,000 67,000 44,000 210,000 561,000 1,105,421 1,000,000 -275,973 724,027 1,829.448 2,390,448 500,000 1,983,552 -88.000 2,395,552 4,786,000