Question 1The Paid in Capital Section of the Stockholders Equity section is as follows:= = 100,000Common Stock, Par Value $2.00; Authorized 100,000 shs, Issued and Outstanding 50,000 sharesThe Board of Directors believes that the current Market Price of $50.00 per share is too high and is detracting from investors buying the shares.The Board Declared a 2:1 Stock Split.REQUIRED:1) What is the effect of the stock split on the Common Shares ?List all items effected by the stock split.Par Value;- Issued and Outstanding SharesMarket Price of the Shares- Common Stock balance after the split on the Paid in Capital section ?

The stock split is a process in which the company breaks down its share into the number of shares.…

Answered: Common Stock, Par Value $2.00;…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 24P

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Required: 5. The average per-share sales price of the common stock when issue $? per share 6. The cost of the treasury stock per share $? per share 7. The total stockholders' equity $? 8. The per-share book value of the common stock assuming that there are no dividends in arrears and that the preferred stock can be redeemed at its par value $? per share
A6
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ol ! 1 Current Attempt in Progress On October 31, the stockholders' equity section of Cullumber Company consists of common stock $370,000 and retained earnings $904,000. Cullumber is considering the following two courses of action: (1) declaring a 6% stock dividend on the 37,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $16 per share. Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par value per share. After After Stock Stock Before Action Dividend Split Stockholders' equity Paid-in capital Q A Common stock In excess of par NO 2 N Total paid-in capital Retained earnings Total stockholders' equity Outstanding shares 30 W S #3 X H 1 option command E D $ Ad 4 $ $ 288 FA R C do L % 5 F T V MacBook Air F6 < 6 G Y B & 7 H 90 U W 00 8 N DI J ( 1 9 DE K M D O MOSISO L F H D Р W 1 . ( command 1 ?
All other things equal, what is the effect on earnings per share when a corporation acquires shares of its own stock on the open market? 7 Multiple Choice 0136 Decrease. Increase. No effect if the shares are held as treasury shares. Increase only if the shares are considered to be retired. Next > K Prev 17 of 44
Automotive Supplies Inc’s Stock trades at $50 a share. The company is contemplating a 4-for-3 stock split. Assuming that the stock split will have no effect on the market value of its equity, what will be the company’s stock price following the stock split? Select one: a. $50.00 b. $80.00 c. $75.00 d. $37.50
Please answer with reason for all why the option is correct and why the other options are incorrect
a. What will be the issue price? b. Describe any three (3) suitable situations that may lead to the valuation of shares
hello, I need help please
If Treasury Stock is purchased, the Stockholder's Equity Section of the Balance Sheet will (select all that apply) O reduce Total Paid-in Capital O reduce Retained earnings for the amount of the Treasury Stock reduce the total par value of Common Stock to reflect the Treasury Stock purchased reduce the number of shares of Common Stock Outstanding increase the number of shares of Common Stock Outstanding add Treasury Stock at the bottom O subtract Treasury Stock at the bottom have a subtotal called "Total Paid-in Capital and Retained Earnings"
Please help me with all answers thanku
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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