PLEASE I NEED HELP ON THESE PROBLEMS! CANT FIGURE OUT A SOLUTION!! THANK YOU!

PLEASE I NEED HELP ON THESE PROBLEMS! CANT FIGURE OUT A SOLUTION!! THANK YOU!

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The Johnson Corporation has annual credit sales of $27 million. The average collection period is 29 days.
Required:
What is the average investment in accounts receivable as shown on the balance sheet?
(Do not include the dollar sign ($).
Enter your answer in
dollars, not millions of dollars (e.g., 1,234,567). Round your answer to 2 decimal places (e.g., 32.16).)
Average receivables
$
ANSWER____
The company with the common equity accounts shown here has decided on a two-for-one stock split. The firm’s 35-cent-per-share cash dividend on the
new (postsplit) shares represents an increase of 5 percent over last year’s dividend on the presplit stock.
Common stock ($1 par value)
$ 490,000
Capital surplus
1,557,000
Retained earnings
3,882,000
Total owners’ equity
$ 5,929,000
Requirement 1:
What is the new par value of the stock?
(Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).)
New par value
$ per share
Requirement 2:
What was last year’s dividend per share?
(Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).)
Dividends per share last year
$
As discussed in the text, in the absence of market imperfections and tax effects, we would expect the share price to decline by the amount of the dividend
payment when the stock goes ex dividend. Once we consider the role of taxes, however, this is not necessarily true. One model has been proposed that
incorporates tax effects into determining the ex-dividend price:

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(
P
O

P
X
) /
D
= (1 –
T
P
) / (1 –
T
G
)
Here
P
O
is the price just before the stock goes ex,
P
X
is the ex-dividend share price,
D
is the amount of the dividend per share,
T
P
is the relevant marginal
personal tax rate on dividends, and
T
G
is the effective marginal tax rate on capital gains.
Required:
(a)
If
T
P
=
T
G
= 0, how much will the share price fall when the stock goes ex?
Share price decline
D
(b)
If
T
P
= 20 percent and
T
G
= 0, how much will the share price fall?
(Round your answer to 2 decimal places (e.g., 32.16).)
Share price decline
D
(c)
If
T
P
= 20 percent and if
T
G
= 30 percent, how much will the share price fall?
(Round your answer to 4 decimal places (e.g., 32.1616).)
Share price decline
D
(d)
Suppose the only owners of stock are corporations. Recall that corporations get at least a 70 percent exemption from taxation on the dividend income
they receive, but they do not get such an exemption on capital gains. If the corporation’s income and capital gains tax rates are both 40 percent, what
does this model predict the change in the ex-dividend share price will be?
(Round your answer to 4 decimal places (e.g., 32.161).)
Share price decline
D
A bank offers your firm a revolving credit arrangement for up to $63 million at an interest rate of 1.46 percent per quarter. The bank also requires you to
maintain a compensating balance of 6 percent against the
unused
portion of the credit line, to be deposited in a noninterest-bearing account. Assume you
have a short-term investment account at the bank that pays 0.87 percent per quarter, and assume that the bank uses compound interest on its revolving
credit loans.

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