Enoki's common stock is selling for RM 2 per share and this company is currently growing at 5%. Its common stockholders' equity is shown below/ Paid in capital (RM 1 par value, 60,000,000 shares) RM 60,000,000 Capital contributed in excess of par value RM 10,000,000 Retained earnings RM 65,000,000 Common stockholders' equity RM 135,000,000 i. Show the impact of a 40% stock dividend. ii. Describe how the stock market would react to the stock dividends.
Enoki's common stock is selling for RM 2 per share and this company is currently growing at 5%. Its common stockholders' equity is shown below/ Paid in capital (RM 1 par value, 60,000,000 shares) RM 60,000,000 Capital contributed in excess of par value RM 10,000,000 Retained earnings RM 65,000,000 Common stockholders' equity RM 135,000,000 i. Show the impact of a 40% stock dividend. ii. Describe how the stock market would react to the stock dividends.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Enoki's common stock is selling for RM 2 per share and this company is currently growing at 5%. Its common
| Paid in capital (RM 1 par value, 60,000,000 shares) | RM 60,000,000 |
| Capital contributed in excess of par value | RM 10,000,000 |
| RM 65,000,000 | |
| Common stockholders' equity | RM 135,000,000 |
i. Show the impact of a 40% stock dividend.
ii. Describe how the stock market would react to the stock dividends.
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