acct

posted by .

Business is going well for Email Designers. The board of directors of this family-owned company believes that Email Designers could earn an additional $1,000,000 income before interest and taxes by expanding into new markets. However, the $4,000,000 the business needs for growth cannot be raised within the family. The directors, who strongly wish to retain family control of the company, must issue securities to outsiders. They are considering three financing plans. Plan A is to borrow at 6%. Plan B is to issue 100,000 shares of common stock. Plan C is to issue 100,000 share of non voting, $2.50 preferred stock of common stock. ($2.50 is the annual cash dividend for each share of preferred stock.) Email Designers currently has net income of $1,200,000 and 400,000 share of common stock outstanding. The company’s income tax rate is 40%

  • acct -

    And YOUR question is? In other words, how may we HELP you? We do not DO any work for you.

    Sra

  • acct -

    How do I log the non voting stock on the balance sheet?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. accounting

    Assets Cash (Net Effect) $35,000 20,000 +15,000 A/R 33,000 14,000 +19,000 Merchandise Inventory 27,000 20,000 +7,000 PPE 60,000 78,000 -18,000 Accumulated Depreciation (29,000) (24,000) ?
  2. financial management

    Wheeler Corporation is planning to expand its business and needs $30,000,000. The company believes that a 12-year term loan can be negotiated with a bank at an annual rate of 10%. Alternatively, an investment banking firm has indicated …
  3. finance

    Wheeler Corporation is planning to expand its business and needs $30,000,000. The company believes that a 12-year term loan can be negotiated with a bank at an annual rate of 10%. Alternatively, an investment banking firm has indicated …
  4. Finance 200

    11. The Sterling Tire Company’s income statement for 2008 is as follows: Given this income statement, compute the following: STERLING TIRE COMPANY Income Statement For the Year Ended December 31, 2008 Sales (20,000 tires at $60 each) …
  5. FINN 200

    12. The Harmon Company manufactures skates. The company’s income statement for 2008 is as follows; Sales (20,000 tires at $60 each) . . . . . . . . . . . . . . . . . . . . . . . . $1,200,000 Less: Variable costs (20,000 tires at …
  6. accounting

    Carlton company had assetsof $280,000 & liabilities of $120,000 at the beginning of the year and assets of $400,000 & liabilities of $140,000 at the end of the year. During the year, the owner invested an additional $40,000 in the …
  7. law

    If the decedent owned an interest in a qualifying family-owned business, a deduction from the gross estate in the amount of up to __________ may be available. A. $1,100,000 B. $1,200,000 C. $2,100,000 D. $2,200,000
  8. Fiance

    Use your knowledge of income statements to fill in the missing items: Sales Cost of goods sold $575,000 Gross profit $1,600,000 General and administrative expense $200,000 Selling and marketing expense $ Depreciation $50,000 Operating …
  9. Finance

    P5. Use your knowledge of income statements to fill in the missing items: SALES - $------ COST OF GOODS SOLD - $575,000 GROSS PROFIT - $1,600,000 GENERAL AND ADMINISTRATIVE EXPENSE - $200,000 SELLING AND MARKETING EXPENSE - $------ …
  10. Business Law and Taxes

    Q. No.1.From the following information compute the Gross total income and taxable income of Mr. Murugan of Chennai. Income from Salary 1,20,000 Interest on Government security 20,000 Winning from lottery (Gross) 30,000 Dividend 40,000 …

More Similar Questions