presentationtransparencieschapters117ch15章节.ppt

ounting,21stEditionWarrenReeveFessBondsPayableandInvestmentsinBonds1TwoMethodsofLong-TermFinancingResources=SourcesStockholders’EquityAssetsLiabilitiesEquityFinancing:StockholdersDebtFinancing:Bondholders2Bonds(debt)—(equity)—?TwoMethodsofLong-TermFinancing3Plan1 Plan2 Plan312%bonds — — $2,000,000Preferred9%stock,$50par — $2,000,000 1,000,monstock,$10par $4,000,000 2,000,000 1,000,000Total $4,000,000 $4,000,000 $4,000,000Earningsbeforeinterest etax $800,000 $800,000 $800,000Deductinterestonbonds — — 240,000 etax $800,000 $800,000 $560,etax 320,000 320,000 224,e $480,000 $480,000 $336,000Dividendsonpreferredstock — 180,000 90,000Availablefordividends $480,000 $300,000 $246,monstock ÷400,000 ÷200,000 ÷100,000AlternativeFinancingPlans–$800,000EarningsEarningspershare $ $ $ Plan2 Plan312%bonds — — $2,000,000Preferred9%stock,$50par — $2,000,000 1,000,monstock,$10par $4,000,000 2,000,000 1,000,000Total $4,000,000 $4,000,000 $4,000,000Earningsbeforeinterest etax $440,000 $440,000 $440,000Deductinterestonbonds — — 240,000 etax $440,000 $440,000 $200,etax 176,000 176,000 80,e $264,000 $264,000 $120,000Dividendsonpreferredstock — 180,000 90,000Availablefordividends $264,000 $84,000 $30,monstock ÷400,000 ÷200,000 ÷100,000AlternativeFinancingPlans–$440,000EarningsEarningspershare $ $ $ -termdebt—repayable10,20,(principal)amountsof$1,000,ormultiplesof$1,(life),,