ABC Corporation currently have Ordinary Share Capital, P20 par, 50,000 shares and undertakes a 2 for 1 share split How much is the current par value of share?
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- 7) What account should you debit when you declare a 2: 1 stock split on 100,000 common shares outstanding, par value is $2/share and selling price is $100/sh?Soar Corporation issued a 100% share dividend of its ordinary shares which had a par value of P10 before and after the dividend. At what amount should retained earnings be capitalized for the additional shares issued? a. Fair value on the declaration date b. Fair value on the payment date c. There should be no capitalization of retained earnings. d. Par valueABC issued a series of preference share that currently pay dividend of $3.45 per share in perpetuity. What is the current market price of ABC shares if required rate of return is 12% p.a.
- The owners' equity accounts for Mars International are shown here: Common stock ($.50 par value) Capital surplus Retained earnings Total owner's equity Please show the equity accounts will change if: a. The company declares a 5-for-1 stock split. How many shares are outstanding now? What is the new par value per share? b. The company declares a 1-for-4 reverse stock split. $20,000 210,000 587,300 $817,300 c. The balance sheet for Mars International is shown below in Market value terms. There are 12,000 shares of stock outstanding. Market Value Balance Sheet Equity $817,300 Cash $ 99,660 Fixed assets 717,640 Total $817,300 Total $817,300 The company has declared a dividend of $1.45 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? d. suppose the company has announced it is going to repurchase $17,400 worth of stock. What effect…1. You are required to calculate the Weighted Average Cost of Capital (WACC) of Sethoo & Sons Limited from the data below: Black Limited Star Limited Number of Ordinary Shares (GH¢1.00) 2,000,000 1,000,000 Net Income available to Ordinary Shares 600,000 250,000 Gross Dividend 500,000 200,000 Market Price per share 3.00 2.00 Market value of Debts 3,000,000 1,500,000 Annual Growth rate of Dividend 12% 10% Gross Interest yield 10% 11% NOTE: The corporation tax rate is 50%. Debts are currently quoted at GH¢100 per block. 2. Explain why the Market Value Approach of calculating WACC is preferred to the Book Value Approach. 3. What are the uses of Weighted Average Cost of Capital?XYZ issued a series of preference share that currently pay dividend of $4.55 per share in perpetuity. What is the current market price of XYZ shares if required rate of return is 11% p.a.
- Toronto Corporation wants to raise $1,210,000 via a rights offering. The company currently has 220,000 shares of common stock outstanding that sells for $32 per share. The issue will allow current stockholders to purchase one additional share for 5 rights. a) What will be the ex-rights stock price, the value of a right, and the appropriate subscription price? b) If 2 rights are needed to purchase on additional share, how does the stockholders’ wealth change? c) Why do you think the company chose a rights issue rather than a general cash offer to raise new capital?P14-11M (change the current market price to $29 per share and the dividend percentage to 7.5% Cost of Preferred Stock Par value Current market price Dividend rate Dividend dollars Cost of Preferred Stock BOThe total assets value of Boafo Plc is GHC600,000 and the shareholders’ fund is GHC360,000. The shareholders’ fund consists of :100,000 ordinary shares issued at GHC2 per share 200,000Retained earnings 160,000Calculate the book valuation of a share of QRS Plc
- 7. Calman Industries has 5 million shares outstanding at present with each share currently trading at £40 per share. Suppose the firm announces a 5-for-2 stock split, how many shares will the company have following the split? w mn а. 25.0 millione 12.5 million 2.0 million b. с. d. 16.0 milliontUse the method of comparable to calculate the value per share for company B. the below table shows us sales, earning, book value, and share capital Sales Earning Book value Share Capital Company A 22160 1952 16123 6050 Company B 26951 4262 12045 4744 Company C 306058 18396 72461 8970 The below table shows share price and par value for companies Company A Company B Company C Share price 0.470 ??? 2.190 Par value 0.100 1.000 0.100Bermuda Triangle Corporation (BTC) currently has 370,000 shares of stock outstanding that sell for $100 per share. Assume no market Imperfections or tax effects exist. Determine the share price and new number of shares outstanding if: (Do not round intermediate calculatlons. Round your prlce per share answers to 2 decimal places, e.g., 32.16, and shares outstanding answers to the nearest whole number, e.g., 32.) a. BTC has a five-for-three stock split. b. BTC has a 12 percent stock dividend. c. BTC has a 38.0 percent stock dividend. d. BTC has a four-for-seven reverse stock split. a. Price per share Shares outstanding b. Price per share Shares outstanding c. Price per share Shares outstanding d. Price per share Shares outstanding