Assume that you own 110 shares of common stock of a company, that you have been receiving cash dividends of $5 per share per year, and that the company has a 3-for-2 stock split. Required: a. How many shares of common stock will you own after the stock split? b. What new cash dividend per share amount will result in the same total dividend income as you received before the stock split? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) c. What stock dividend percentage could have accomplished the same end result as the 3-for-2 stock split? a. Shares of common stock b. New cash dividend C. Stock dividend per share %
Assume that you own 110 shares of common stock of a company, that you have been receiving cash dividends of $5 per share per year, and that the company has a 3-for-2 stock split. Required: a. How many shares of common stock will you own after the stock split? b. What new cash dividend per share amount will result in the same total dividend income as you received before the stock split? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) c. What stock dividend percentage could have accomplished the same end result as the 3-for-2 stock split? a. Shares of common stock b. New cash dividend C. Stock dividend per share %
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 9P
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Question
![Assume that you own 110 shares of common stock of a company, that you have been receiving cash dividends of $5 per share per
year, and that the company has a 3-for-2 stock split.
Required:
a. How many shares of common stock will you own after the stock split?
b. What new cash dividend per share amount will result in the same total dividend income as you received before the stock split? (Do
not round Intermediate calculations. Round your answer to 2 decimal places.)
c. What stock dividend percentage could have accomplished the same end result as the 3-for-2 stock split?
a. Shares of common stock
b. New cash dividend
C. Stock dividend
per share
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6db4719a-9a82-4a68-9040-c81531e716f9%2F1e5971c3-ab86-4dae-9503-8d3cced1bbcf%2Fhkxhfy9_processed.png&w=3840&q=75)
Transcribed Image Text:Assume that you own 110 shares of common stock of a company, that you have been receiving cash dividends of $5 per share per
year, and that the company has a 3-for-2 stock split.
Required:
a. How many shares of common stock will you own after the stock split?
b. What new cash dividend per share amount will result in the same total dividend income as you received before the stock split? (Do
not round Intermediate calculations. Round your answer to 2 decimal places.)
c. What stock dividend percentage could have accomplished the same end result as the 3-for-2 stock split?
a. Shares of common stock
b. New cash dividend
C. Stock dividend
per share
%
![Required Information
[The following information applies to the questions displayed below.]
On April 10, 2019, Amelia Inc. purchased 475 shares of its own common stock in the market for $23 per share. On
September 28, 2019, the company sold 285 of these shares in the open market at a price of $26 per share.
Required:
a. Use the horizontal model to show the effects on Amelia Inc.'s financial statements of the purchase of the treasury stock on April 10.
2019. Indicate the financial statement effect. (Enter decreases with a minus sign to Indicate a negative financial statement effect.)
Assets
=
Assets
=
Balance Sheet
Liabilities
+
+
Balance Sheet
Liabilities
b. Use the horizontal model to show the effects on Amelia Inc.'s financial statements of the sale of the treasury stock on September 28.
2019. Indicate the financial statement effect. (Enter decreases with a minus sign to Indicate a negative financial statement effect.)
+
Stockholders' Equity
+
Net Income
Stockholders' Equity
Net Income
=
|=
=
Income Statement
Revenues
Revenues
Income Statement
|-|
-
Expenses
Expenses](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6db4719a-9a82-4a68-9040-c81531e716f9%2F1e5971c3-ab86-4dae-9503-8d3cced1bbcf%2Fzt7kd3j_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
On April 10, 2019, Amelia Inc. purchased 475 shares of its own common stock in the market for $23 per share. On
September 28, 2019, the company sold 285 of these shares in the open market at a price of $26 per share.
Required:
a. Use the horizontal model to show the effects on Amelia Inc.'s financial statements of the purchase of the treasury stock on April 10.
2019. Indicate the financial statement effect. (Enter decreases with a minus sign to Indicate a negative financial statement effect.)
Assets
=
Assets
=
Balance Sheet
Liabilities
+
+
Balance Sheet
Liabilities
b. Use the horizontal model to show the effects on Amelia Inc.'s financial statements of the sale of the treasury stock on September 28.
2019. Indicate the financial statement effect. (Enter decreases with a minus sign to Indicate a negative financial statement effect.)
+
Stockholders' Equity
+
Net Income
Stockholders' Equity
Net Income
=
|=
=
Income Statement
Revenues
Revenues
Income Statement
|-|
-
Expenses
Expenses
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