Use the following to answer questions 13 - 17KMC Corp.'s management is considering either a 100%stock dividend or a 2-for-1 stock split.Complete the following chart to assist in answering thefollowing:After 2-for-1Stock Dividend Stock SplitAfter 100%BeforeCommon stock, $0.50 par value $250,000Additional paid-in capital25,000,000Total paid-in capital25,250,000Retained Earnings500,000Total stockholders' equity$25,750,000Shares outstanding500,000Par value per share$0.50Share price$250.00$what amount is in Total paid-in capital account?13.After the 100% stock dividend14.After the 100% stock dividendwhat amount is in the retained earnings account?2$is the par15.After the 100% stock dividend whatvaluepershare?$amount is in Total paid in capital account?16.After the 2-for-1 stock split what$the17.After the 2-for-1 stock split what isshare?par valueper

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Answered: 13. $ After the 100% stock dividend…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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why this is not a finance activity? air value of shares issued in a stock dividend $ 116.0
The total dividends to be given to common stock, if preferred stock is cumulative and fully participating, would be? The total dividends to be given to preferred stock, if preferred stock is cumulative and fully participating, would be?
Q. 1What is the holding– period return for a share which cost £4.50, was held for a year and then sold for £6.20, and which paid a dividend at the end of the holding period of 20p?
Think about the information below: Capital surplus Retained earnings Common stock ($1 par valve) TOTAL OWNERS' EQUITY Dollars ($) 400,000 900,000 5,000,000 6,300,000 Shares are currently trading around $51 each. What impact would a 10% stock dividend have on the equity accounts? Provide the updated numbers for each line item following the dividend.
Sh5
14. What are dividends in arrears? How do they affect the allocation of dividends to preference and ordinary shareholder if: a. Preference share capital are noncumulative b. Preference share capital are cumulative 15. What is the significance of book value per share? How is it computed if a. Only one class of share capital is outstanding? b. Two classes of share capital are outstanding? 16. What is earnings per share? What is its significance to the shareholders? How is it computed if a. Only one class of share capital is outstanding? b. Two classes of share capital are outstanding?
Firm A’s stock’s dividend yield = 5.48%. The stock price = $59.30 per share. The annual dividend=? A) $2.83 B) $2.91 C) $3.15 D) $3.25 E) $3.48
Assuming the following: 1. 4mm outstanding shares 2. $40mm of pre-tax Net Income 3. $9mm of Depreciation 4. PE multiple of 16x 5. $1.75 quarterly dividend which is expected to grow by 4.23% 6. Book value of $115mm 7. Current share price of $125 8. Tax rate of 25% 9. EBITDA Multiple of 7x. What is the market value of equity? A form of the correct answer would be $53mm.
need part b
The answer to B is incorrect. Does the dividend yield need to be factored in?
9. A small stock dividend is defined by us gaap by a dividend involving 25% of the issued number of common shares. true or false
are my answers correct? if yes help me understand how the computation of answers were arrived at Answer 3.2.1) Calculate the number of shares in issue =240000/30 =8000shares Answer 3.2.2) The dividend per share =60000/8000 = 7.5 per shares Answer 3.2.3) The new share price IN CASE OF DIVIDEND PAYMENT share price = (240000 - 60000)/8000 = 22.5 per share IN CASE OF SHARE REPURCHASE No of shares repurchased = 60000/30 = 2000 shares new number of shares = 8000 - 2000 = 6000 shares new net worth of the company = 240000-60000 = 180000 therefore new share price = 180000/ 6000 = 30 per share 2) Earnings per share (EPS) IN CASE OF DIVIDEND PAYMENT Since the number of shares are not reducing EPS will remain same at 3 per share IN CASE OF SHARE REPURCHASE EPS = (8000*3)/6000 = 4 per share 3)…

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13. $ After the 100% stock dividend what amount is in Total paid-in capital account? $ what amount is in the retained earnings account? 14. After the 100% stock dividend 15. $ is the par value per share? After the 100% stock dividend what