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IMPORTANT – FIN XPBE FINC 310 – GRP TA Xn Course: FINC 310- X DE Unit 3 – Lec n 6 – ( Xs/Samantha/Downloads/FINC%20310%20-%20GRP%20TAKE%20HOME%20ASSGMT%20(March+The company’s most recent summary of financial status is shown below:LMN Holdings Balance Sheet as at 31st December 2019$000$000Non-current assets13,352Current Assets7.350TOTAL ASSETS20,702Equity and Liabilities9% Preference Shares, par value $8.4, 30,000 shares252authorized and issuedCommon stock: $20.00 par, 100,000 shares authorized,1,60080,000 issued and outstandingRetained earnings4,500TOTAL EQUITY6,35210% Bond (par value $100), 100,000 issued and10,000outstandingTotal non-current liabilities10,000Current Liabilities4,350TOTAL EQUITY AND LIABILITIES20,702The current ex div’ ordinary share price is $25.50 per share. An ordinary dividend of 65 centsper share has just been paid and dividends are expected to increase by 4% per year for theforeseeable future. The current ex div preference share price is $2.70 cents. The bond issecured with the existing non-current assets of LMN Holdings and are redeemable at par inseven years’ time. They have a current ex interest market price of $1 13.50 per $100 bond. Thecorporate tax rate on profits is 30%.axWE
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