finance again

Southern fried Chicken has 8,000 shares of stock outstanding with a par value of $1 a share and a market value of $34 per share. The balance sheet shows $45,000 in the capital in excess of par account, $8,000 in the common stock account, and $152,000 in the retained earnings account. The firm just announced a 5% stock dividend. What will total owner's equity be after the dividend?

$205,000

On average, your firm receives 65 checks a day from customers. these checks, on average, are worth $39.90 each and clear in the bank in 1.5 days. In addition, your firm disburses 38 checks a day with an average amount of $89.50. These checks clear in your bank in 2 days. What is the average amount of the collect float?

$3,890.25

On an average day, goose down feathers receives $2,400 in checks from customers. These checks clear the bank in an average of 2.2 days. the applicable daily interest rate is .04%. what is the present value of the float? Assume each month has 30 days.

$5,2800 $2,400*2.2

the Hobby Shop has a checking account with a ledger balance of $692. The firm has $1,063 in uncollected deposits and $930 in outstanding checks. what is the amount of the disbursement float on this account?

$930

Steve purchased 300 shares of alpha beta stock on May 9. On may 15, he purchased another 3000 shares and then may 22 he purchased a final 400 shares of alpha beta stock. The company declared a dividend of $1.60 a share on April 30th to holders of record on Friday, May 23. The dividend is payable on June 2. How much dividend income will steve receive on June 2 from Alpha Beta

$960 those purchased on May 22nd will not receive one because they were not 2 or more days before declaring a dividend

which one of the following statements related to cash dividends is correct?

A dividend is never a liability until it has been declared

Kate purchased 500 shares of fast deliveries stock on Wednesday July 7th. Ted Purchased 100 shares of stock on Thrusday, July 8th. Fast deliveries declared a dividend on June 20th to shareholders of record on July 12th and payable on August 1st. Which one of the following statements concerning the dividend paid on August 1st is correct given this info?

Both kate and ted are entitled to a dividend

Soup Galore is a partnership that was formed three years ago for the purpose of creating, producing, and distributing healthy soups in a dried form. The firm has been extremely successful thus far and has decided to incorporate and offer shares of stock to the general public. What is this type of equity offering called?

Initial public offering

A firm has $16,718 in outstanding checks that have not cleared the bank. The firm also has $13,450 in deposits that have been recorded by the firm but not the bank. The current available balance is $11,407. What is the Status of the net float?

Net disbursement of $3,268

HJ corporation has excess cash and has opted to buy some of its shares of outstanding common stock. What is this process of buying called?

Stock repurchase

Bell weather markets has recently sold for as little as $8 a share and as much as $15 a share. The difference between these two prices is referred to as the:

Trading range

Jones & Co is funded by a group of individuals for the sole purpose of providing funding for individuals who are trying to convert their new ideas into viable products. What is this type of funding called?

Venture capital

Which one of the following statements concerning venture capital financing is correct?

Venture capitalists often require as least 40% equity position as a condition of financing

What is prospectus?

a document that describes the details of a proposed security offering along with relevant information about the issuer

What is the definition of a syndicate?

a group of underwriters sharing the risk of selling a new issue of securities

the difference between the underwriters' cost of buying shares in a firm commitment and the offering price of those securities to the public is called the:

gross spread

the securities and exchange commission

is concerned only that an issue complies with all rules and regulations

disbursements float:

is eliminated when payments are made electronically

if an IPO is underpriced then the

issuing firm receives less money than it probably should have

with firm commitment underwriting, the issuing firm:

knows up-front the amount of money it will receive from the stock offering

Which statement is correct?

maintaining a steady dividend is a key goal of most dividend-paying firms

Cash management primarily involves

optimizing a firm's collections and disbursements of cash

before a season stock offering, you owned 7,500 shares of a firm that had 500,000 shares outstanding. after the seasoned offering, you still owned 7,500 shares outstanding rose to 625,000. Which one of the followng terms best describes this situation?

percentage ownership dilution

Float is defined as

the difference between book cash and bank cash

Executive Tours has decided to take its firm public and has hired an investment firm to handle this offering. The investment firm is serving as an:

underwriter