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  • Nicole Has Been Financing Nicole S Getaway Spa Ngs Using Equity

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    Hassan Jan
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    Nicole's Getaway Spa (NGS) has been financed through equity. NGS is authorized to issue 100,000 preferred shares and 200,000 common shares. Currently, 50,000 preferred shares and 40,000 common shares are outstanding. Recent transactions include: 1) issuing 1,000 preferred shares for $12 each. 2) repurchasing 1,000 common shares for $11 each. 3) declaring a $0.10 dividend per preferred share to be paid in December.

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    Nicole Has Been Financing Nicole s Getaway Spa Ngs Using Equity

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    Nicole's Getaway Spa (NGS) has been financed through equity. NGS is authorized to issue 100,000 preferred shares and 200,000 common shares. Currently, 50,000 preferred shares and 40,000 common shares are outstanding. Recent transactions include: 1) issuing 1,000 preferred shares for $12 each. 2) repurchasing 1,000 common shares for $11 each. 3) declaring a $0.10 dividend per preferred share to be paid in December.

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    © All Rights Reserved
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    78 views1 page

    Nicole Has Been Financing Nicole S Getaway Spa Ngs Using Equity

    Uploaded by

    Hassan Jan
    Nicole's Getaway Spa (NGS) has been financed through equity. NGS is authorized to issue 100,000 preferred shares and 200,000 common shares. Currently, 50,000 preferred shares and 40,000 common shares are outstanding. Recent transactions include: 1) issuing 1,000 preferred shares for $12 each. 2) repurchasing 1,000 common shares for $11 each. 3) declaring a $0.10 dividend per preferred share to be paid in December.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Nicole has been financing Nicole s Getaway Spa NGS

    using equity #2830


    Nicole has been financing Nicole's Getaway Spa (NGS) using equity financing. Currently NGS
    has authorized 100,000 no-par preferred shares and 200,000 $2 par common shares.
    Outstanding shares include 50,000 preferred shares and 40,000 common shares.Recently the
    following transactions have taken place.a. NGS issues 1,000 preferred shares for $12 a
    share.b. NGS repurchases 1,000 common shares for $11 a share.c. On November 12, 2014,
    the board of directors declared a $0.10 cash dividend on each outstanding preferred share.d.
    The dividend is paid December 20, 2014.Required:1. Prepare the journal entries needed for
    each of the transactions.2. If you were a common shareholder concerned about your voting
    rights, would you prefer Nicole to issue additional common shares or additional preferred
    shares? Why?3. Describe the overall effect of each transaction on the assets, liabilities, and
    shareholders' equity of the company. (Use + for increase, - for decrease, and NE for no
    effect.)4. How would each transaction affect the ROE ratio?View Solution:
    Nicole has been financing Nicole s Getaway Spa NGS using equity

    ANSWER
    http://paperinstant.com/downloads/nicole-has-been-financing-nicole-s-getaway-spa-ngs-using-
    equity/

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