Problem 1 ABC Company Balance Sheet December 31 20xx Assets

Problem 1abc Companybalance Sheetdecember 31 20xxassetsliabilities An

Problem 1abc Company balance sheet as of December 31, 20xx, including assets, liabilities, and equity. The balance sheet lists various financial components such as cash, accounts payable, accounts receivable, long-term debt, inventory, common stock, plant and equipment, shares outstanding, paid-in capital, and retained earnings. The prompt asks: What will be the new price of the stock?

Problem 2 ABC Company Balance Sheet December 31, 20xx Assets Liabilities and Equity Cash Accounts Payable Accounts Receivable Long-term debt Inventory Common stock Plant and Equipment ( shares outstanding, $ par) Total $0 Paid-in capital Retained earnings Totals $0 What is the new price of the stock?

Problem 3 ABC Company Balance Sheet December 31, 20xx Assets Liabilities and Equity Cash Accounts Payable Accounts Receivable Long-term debt Inventory Common stock Plant and Equipment ( shares outstanding, $ par) Total $0 Paid-in capital Retained earnings Totals $0 What is the new price of the stock?

Problem 4 ABC Company Balance Sheet December 31, 20xx Assets Liabilities and Equity Cash Accounts Payable Accounts Receivable Long-term debt Inventory Common stock Plant and Equipment ( shares outstanding, $ par) Total $0 Paid-in capital Retained earnings Totals $0 What is the total cash dividend?

Week 06 Example Problems 1. Firm A's balance sheet: Cash $28,000,000; common stock ($50 par, 2,000,000 shares outstanding) $100,000,000; additional paid-in capital $10,000,000; retained earnings $62,000,000. How do these accounts change after: a. A cash dividend of $1 per share? b. A 5% stock dividend (market value $100 per share)? c. A 1-for-2 reverse split?

Solution summary:

a. Cash decreases by $2,000,000, retained earnings decrease by $2,000,000, cash becomes $26,000,000, retained earnings $60,000,000.

b. Retained earnings reduce by $5,000,000, new shares issued (100,000), total shares 2,100,000, new common stock value increases, retained earnings reduce to $52,000,000, and additional paid-in capital increases correspondingly.

c. The reverse split halves the number of shares (from 2,000,000 to 1,000,000), doubles the par value to $100, with no effect on total assets or liabilities.

The dividend-growth model formula: V = D / (k - g).

Questions include calculating stock value with given D, k, g, and how changes in D, g, and k alter valuation.

2. Artworks, Inc.: Last dividend $3.50, growth rate 10%, required return 15%. Maximum price calculated as: ~$77.85.

3. For Good Mills stock at $30, dividend $2.20 with 8% growth, investor's required return 15%. Is the stock undervalued? Yes, valuation ~$32.94 matches the current price, suggesting undervaluation. If dividend drops to $1.00, valuation drops to ~$15.43, making it overvalued at $30.

Case 11: Physician compensation modeling in Bangor Family Physicians. The task involves analyzing different compensation systems, including based on revenue, work RVUs, net income, and multiple factors. Students must describe each system, assess their strengths and weaknesses, and recommend the most suitable for the practice, considering operational challenges. The paper should be under 500 words, with APA citations.