In total how much did it cost the company to buy back its own shares of stock how much did the company pay per share for its treasury stock? If the company had a2:1 stock split on its common stock how many more shares is common stock would be issued? →Below is a stockholders' equity section of Crimson, Inc.:6% noncumulative preferred stock $50 par value,1,000,000 sharesauthorized, 40,000 shares issued &outstanding$2,000,000Common stock, $10 par, 10,000,000 authorized,800,000 shares issued, 750,000outstandingAdditional paid in capital$ 2,000,000Retained earnings$20,000,000Treasurystock($800,000)Total stockholders' equity$21,700,000$8,000,000

The treasury stock includes the own shares of the company that are purchased from the shareholders…

In total how much did it cost the company to buy back its own shares of stock how much did the company pay per share for its treasury stock? If the company had a2:1 stock split on its common stock how many more shares is common stock would be issued?

In total how much did it cost the company to buy back its own shares of stock how much did the company pay per share for its treasury stock? If the company had a2:1 stock split on its common stock how many more shares is common stock would be issued?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

need part b
Sixth Fourth Bank has an issue of preferred stock with a $6.50 stated dividend that just sold for $85 per share. What is the bank's cost of preferred stock? Cost of preferred stock ___________%
Sixth Fourth Bank has an issue of preferred stock with a $6.80 stated dividend that just sold for $88 per share. What is the bank’s cost of preferred stock?
The answer to B is incorrect. Does the dividend yield need to be factored in?
Common versus Preferred Stock Suppose a company has a preferred stock issue and a common stock issue. Both have just paid a $2 dividend. Which do you think will have a higher price, a share of the preferred or a share of the common?
9. A small stock dividend is defined by us gaap by a dividend involving 25% of the issued number of common shares. true or false
What effect would the calculation performed have in terms of shareholder value? In other words, suppose the company’s goal is to maximize shareholder value. How will increasing its dividend per share by 1.75 support or inhibit that goal? Be sure to justify reasoning.
The expected pretax return on three stocks is divided between dividends and capital gains in the following way: Stock Expected Dividend Expected Capital Gain A $0 $10 B 5 5 C 10 0 Required: a. If each stock is priced at $110, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3%), and (iii) an individual with an effective tax rate of 15% on dividends and 10% on capital gains? b. Suppose that investors pay 50% tax on dividends and 20% tax on capital gains. If stocks are priced to yield an after-tax return of 8%, what would A, B, and C each sell for? Assume the expected dividend is a level perpetuity. Req A Req B If each stock is priced at $110, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 21% (the effective…
Why are dividends important in determining the present value of a share? How would you account for the positive market value of company’s share which currently pays no dividend? (300 words)ASAP
5.2 (q3) A share has just paid a dividend of $4.96, and this dividend is expected to grow at the rate of 3% in perpetuity. If the current price of the share is $70.2, what is the cost of ordinary shares for the firm? a. 7.47% b. 10.28% c. 12.14% d. 10.07%