Questions

focus on ETHICS Chiquitas Slippery Situation For many people the little blue Chiquita sticker is

QUESTION focus on ETHICSChiquitas Slippery SituationFor many people, the little blue Chiquita sticker is as familiar as a bananas yellow peel. One of the worlds two largest banana companies (along with Dole Food Co.), Cincinnati-based Chiquita is a global business with operations on six continents. Chiquita sources its bananas from Latin America, operating banana farms […]

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Date: September 2nd, 2020

Aggressive versus conservative seasonal funding strategy Dyna base Tool has forecast its total funds

QUESTION Aggressive versus conservative seasonal funding strategy Dyna base Tool has forecast its total funds requirements for the coming year as shown in the following table.MonthAmountMonthAmountJanuary$2,000,000July$12,000,000February2,000,000August14,000,000March2,000,000September9,000,000April4,000,000October5,000,000May6,000,000November4,000,000June9,000,000December3,000,000a. Divide the firms monthly funds requirement into (1) a permanent component and (2) a seasonal component, and find the monthly average for each of these components.b. Describe the amount […]

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Date: September 2nd, 2020

Dividend constraints The Howe Companys stockholders equity account follows: Common stock (400 000

QUESTION Dividend constraints The Howe Companys stockholders equity account follows:Common stock (400,000 shares at $4 par)$1,600,000Paid-in capital in excess of par$1,000,000Retained earnings1,900,000Total stockholders equity$4,500,000The earnings available for common stockholders from this periods operations are $100,000, which have been included as part of the $1.9 million retained earnings.a. What is the maximum dividend per share that […]

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Date: September 2nd, 2020

EBITEPS and preferred stock Litho-Print is considering two possible capital structures A and B

QUESTION EBITEPS and preferred stock Litho-Print is considering two possible capital structures, A and B, shown in the following table. Assume a 40% tax rate.Source of capitalStructure AStructure BLong-term debt$75,000 at 16%$50,000 at 15%coupon ratecoupon ratePreferred stock$10,000 with an 18%$15,000 with an 18%annual dividendannual dividendCommon stock8,000 shares10,000 sharesa. Calculate two EBITEPS coordinates for each of […]

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Date: September 2nd, 2020