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

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

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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5P: Alert Companys shareholders equity prior to any of the following events is as follows: The company...

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What effect will a two-for-one stock split have on the following items found on a firm's financial statements? a. Earnings per share $5.00. Round your answer to the nearest cent. Initial amount $5.00 $ b. Total equity $10,000,000. Round your answer to the nearest dollar. Initial amount $ New amount Initial amount $4,000,000 New amount $10,000,000 c. Long-term debt $4,600,000. Round your answer to the nearest dollar. Effect $ New amount Effect Initial amount $4,600,000 $ d. Additional paid-in capital $1,689,000. Round your answer to the nearest dollar. Effect New amount $ New amount -Select- Effect New amount Initial amount $1,689,000 e. Number of shares outstanding 800,000. Round your answer to the nearest whole number. Initial amount 800,000 f. Earnings $4,000,000. Round your answer to the nearest dollar. Effect -Select- -Select- -Select- Effect -Select- -Select-
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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.
The company with the common equity accounts shownhere has declared a 15 percent stock dividend when the market value of its stock is$43 per share. What effects on the equity accounts will the distribution of the stockdividend have?Common stock ($1 par value)Capital surplusRetained earningsTotal owners’ equity$ 385,000846,0003,720,800$4,951,800
Current Attempt in Progress Covington Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. 4 Help Covington make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Before Action $1,366,000 $248,000 570,000 548,000 1,118,000 $ $ (1) After Cash Dividend $ $ (2) After Stock Dividend LA 10001
which one is correct answer please confirm? Q18: WPI Inc. has the following current equity accounts on its balance sheet: Common stock ($2.50 par, 500,000 shares) $ 1,250,000 Contributed capital in excess of par $10,000,000 Retained earnings $15,540,000 Total $26,790,000 If WPI earned $3.20 per share this year, what is the maximum dividend per share that WPI may pay if the state capital impairment provisions are limited to the par value and the contributed capital in excess of par accounts? a. $34.28 b. $15.54 c. $31.08 d. $3.20
What would be the park value for one share of common stock after 2:1 stock split If the company had a 2:1 stock split on it's common stock would common stock increase decrease or start the same if the company had a2:1 stock split on it's common stock would total owners equity increase decrease or stay the same
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?
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)…
On the basis of this information, calculate as many liquidity, activity, leverage, profitzit and common stock measures as you can. (Note: Assume the current market price of the common stock is $75 per share.
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