am. 111. 1. How might a 4% stock dividend influence a shareholder currently holding 10% of a company with a stockprice of $30 per share, and total earnings of $2,500,000? Considering the firm's 1,600,000 shares outstanding,kindly calculate both the current and post stock - dividend EPS, P/E Ratio, the number of shares owned, and thecorresponding ownership value. Before Dividend Shares Outstanding After Dividend Earnings per share (EPS)Stock Price P/E Ratio Total Market Value Shares Owned Ownership Value

Stock dividend = 4%Current ownership = 10%Stock price = $30Total earnings = $2,500,000Shares…

Answered: 1. How might a 4% stock dividend…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 11P

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Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
Following is the shareholders equity section of All-Wood Doors on a day a. Use the financial statement template below to show the financial statement effects of the following dividend events. (Assume that the events are independent.) (1) Cash dividend declaration and payment of 1 per share (3) Property dividend declaration and payment of shares representing a short-term investment in Screen Products, Ltd., with a fair value of 10,000 (3) 10% stock dividend (4) 100% stock dividend (5) 3-for-1 stock split (6) 1-for-2 reverse stock split b. Which events changed the book value of common equity? Under what conditions will these events lead to future increases and decreases in ROE?
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Requirement 1. Compute AustinAustin Company's earnings per share for 20182018. Assume the company paid the minimum preferred dividend during 20182018. Round to the nearest cent. Select the formula, then enter the amounts to calculate the company's earnings per share for 20182018. (Abbreviations used: Ave. = average, OS = outstanding, SE = stockholders' equity, shrs = shares.) ( - ) / = Earnings per share ( - ) / = Choose from any list or enter any number in the input fields and then click Check Answer. 2 parts remaining Clear All Check Answer Data Table 2018 2017 Income Statement—partial: Net Income $6,660 $20,000 Dec. 31, 2018 Dec. 31, 2017 Balance Sheet—partial: Total Assets $200,000 $265,000 Paid-In Capital: Preferred Stock—9%, $6 Par Value;…
Q2. a) Why companies are issuing stock dividend? What are the influential factors and the impact of it to the business and stockholders’ point of view. b) The board of directors of ABC Company recently announced a 24% stockdividend. Assuming that the current stock price is OMR 8 and there are 700,000 total ordinary shares outstanding of OMR 0.600 each.You are required to determine the following:i) Determine the market capitalization of the Company before the stock dividend.ii) Determine the increase in shares outstanding due to a 20% stock dividend.iii) Determine the new total shares outstanding.iv) Determine the price per share of the Company after stock dividend
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. List the types of dividends. Why do companies or investors have a preference for one or the other? 6. Martinez Ltd. has the following equity accounts at January 1, 2020. • Preferred shares outstanding: 2,500 shares $ 62,500 • Common shares outstanding: 4,000 shares 400,000 (a) What was the average issue price of the preferred shares? (b) Of the common shares? (c) If the preferred shares pay a dividend of $1 per share and are participating, what is the per share dividend that would be allocated to the common shares before any additional dividend would be paid to preferred shareholders for participation?
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Suppose that you own 3,400 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells at $125 per share. a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.) Number of shares b. What will be the total value of your equity position after the stock dividend is paid? (Do not round intermediate calculations.) Total value c. What will be the number of shares that you hold if the firm splits five-for-four instead of paying the stock dividend? (Do not round intermediate calculations.) Number of shares held
Which of the following statements are true regarding dividends? Which of the following statements are true regarding dividends? check all that apply A large stock dividend is a distribution of more than 25% of previously outstanding shares. A stock split can be used to keep the stock price affordable. A small stock dividend is a distribution of 50% or less of previously outstanding shares. The date of payment reflects the date a cash dividend is paid to stockholders.
1. The owners' equity accounts for Investo Unlimited are shown here: Common stock ($.75 par value) Capital surplus Retained earnings Total owners' equity $50,000 $215,000 $642,700 $907,700 a. b. How many new shares will be distributed if the company's stock currently sells for $50 per share and a 15 percent stock dividend is declared? Show how the equity accounts would change. How would the accounts change if the company declared a 35 percent stock dividend?
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