# Chapter 18 Equity

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```					 Chapter 18
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red

NOTE: Some functions used in these spreadsheets may require that
the "Analysis ToolPak" or "Solver Add-in" be installed in Excel.
To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak"
sis ToolPak"
Chapter 18
Question 2

Input Area:

Common stock
Par value
Capital surplus
Retained earnings
Total owners'Equity

a. Stock price
Stock dividend

b. Stock dividend

Output Area:

a. New shares outstanding              #DIV/0!
New shares issued                   #DIV/0!
Capital surplus on new shares       #DIV/0!

Common stock                        #DIV/0!
Capital surplus                     #DIV/0!
Retained earnings                   #DIV/0!
\$             -

b. New shares outstanding              #DIV/0!
New shares issued                   #DIV/0!
Capital surplus on new shares       #DIV/0!

Common stock                        #DIV/0!
Capital surplus                     #DIV/0!
Retained earnings                   #DIV/0!
\$                 -
Chapter 18
Question 4

Input Area:

Shares outstanding
Stock price
a.      Stock split                              for   3
b.      Stock dividend percent
c.      Stock dividend percent
d.      Stock split (shares)                     for   7

Output Area:

a.      Stock split                #DIV/0!
b.      Stock dividend           \$       -
c.      Stock dividend           \$       -
d.      Stock split                #DIV/0!

e. a.   New shares outstanding               -
b.   New shares outstanding               -
c.   New shares outstanding               -
d.   New shares outstanding               -
Chapter 18
Question 6

Input Area:

Repurchase
Shares outstanding
Dividend per share

Market Value Balance Sheet
Cash                                     Equity
Fixed assets
Total                                      Total

Output Area:

shareholders' equity by                                    \$        -
Shares bought                                                 #DIV/0!
New shares outstanding                                        #DIV/0!
Price after repurchase                                        #DIV/0!
The repurchase is effectively the same as the cash dividend because
you either hold a share worth                 #DIV/0!
or a share worth             #DIV/0! and \$          -     in cash.
Therefore you participate in the repurchase according to the
dividend payout percentage; you are unaffected.
Chapter 18
Question 10

Input Area:

Debt-equity ratio
Earnings
Dividend

Output Area:

Equity portion of outlays \$   -

New borrowings           \$    -

Total capital outlays    \$    -
Chapter 18
Question 14

Input Area:

Discount rate
Shares outstanding
Stock price
Dividend in one year
c. Initial investment amount
Net income earned

Output Area:

a. Stock price                 \$               -

b. Stock price                 \$           -

c. Shares to sell                  #DIV/0!

d. The MM model is not realistic since it does
not account for taxes, brokerage fees,
uncertainty over future cash flows, investors'
preferences, signaling effects, and agency
costs.

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Description: Chapter 18 Equity document sample