Murphy's, Incorporated, has 32,250 shares of stock outstanding with a par value of $1 per share. The market value is $11 per share. The balance sheet shows $88,450 in the capital in excess of par account, $32,250 in the common stock account, and $153,950 in the retained earnings account. The firm just announced a stock dividend of 12 percent. What will the market price per share be after the dividend?

Murphy's, Incorporated, has 32,250 shares of stock outstanding with a par value of $1 per share. The market value is $11 per share. The balance sheet shows $88,450 in the capital in excess of par account, $32,250 in the common stock account, and $153,950 in the retained earnings account. The firm just announced a stock dividend of 12 percent. What will the market price per share be after the dividend?

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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Jersey Medical earns $9.00 a share, sells for $100, and pays a $7 per share dividend. The stock is split two for one and a $3.5 per share cash dividend is declared. What will be the new price of the stock? Round your answer to the nearest dollar. $ If the firm's total earnings do not change, what is the payout ratio before and after the stock split? Round your answers to one decimal place. Payout ratio before the split: % Payout ratio after the split: %
The Athletic Village has done very well the past year, and its stock price is now trading at $94 per share. Management is considering either a 100% stock dividend or a 2-for-1 stock split. Required: Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 3 decimal places.) Common stock, $0.01 par value Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Shares outstanding Par value per share Share price $ $ $ $ Before 10 30,990 31,000 15,600 46,600 1,000 0.01 94 After 100% Stock Dividend After 2-for-1 Stock Split
Membo Inc. just paid a dividend of $4.6 per share. Dividends are expected to grow at 6%, 5%, and 3% for the next three years respectively. After that the dividends are expected to grow at a constant rate of 2% indefinitely. Stockholders require a return of 9 percent to invest in Membo’s common stock. Compute the value of Membo’s common stock today. (SHOW ALL WORK PLEASE)
The Pierce Co. just issued a dividend of $2.04 per share on its common stock. The company is expected to maintain a constant 8 percent growth rate in its dividends indefinitely. If the stock sells for $43.20 a share , what is the company's cost of equity?
Your corporation has declared a cash dividend of $5.00 per share. Before the cash dividend the stock was selling for $60.00 per share. When the stock goes ex-dividend what will the price per share be? Please show your calculations in the space provided.What would the ex-dividend price per share be?
A stock has 94 million shares outstanding, with a current share price of $3.53 per share. If the firm's book value of equity is $120 million, what is its market-to-book ratio?
Breakaway wealth had net earnings of $336,000 this past year. dividends were paid of $77,280 on the company's book equity of $2,800,000. if Safeway has 175,000 shares outstanding with a current market price of $21 per share, what is the required rate of return?
The Athletic Village has done very well the past year, and its stock price is now trading at $80 per share. Management is considering either a 100% stock dividend or a 2-for-1 stock split. Required: Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders’ equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 3 decimal places.) Before After 100% Stock Dividend After 2-for-1 Stock Split Common stock, $0.01 par value $12 Additional paid-in capital 23,990 Total paid-in capital 24,002 Retained earnings 14,900 Total stockholders' equity $38,902 Shares outstanding 1,200 Par value per share $0.01 Share price $80
Countess Corp. is expected to pay an annual dividend of $3.97 on its common stock in one year. The current stock price is $68.04 per share. The company announced that it will increase its dividend by 3.20 percent annually. What is the company's cost of equity?
FarCry Industries, a maker of telecommunications equipment, has 5 million shares of common stock outstanding, 2 million shares of preferred stock outstanding, and 20,000 bonds. Suppose the common shares are selling for $25 per share, the preferred shares are selling for $13.50 per share, and the bonds are selling for 97 percent of par. What would be the weight used for equity in the computation of FarCry's WACC? (Round your answer to 2 declmal places.) Weight used < Prev here to search 近。
Noto Inc. just paid a dividend of $4.6 per share. Dividends are expected to grow at 6%, 5%, and 3% for the next three years respectively. After that the dividends are expected to grow at a constant rate of 2% indefinitely. Stockholders require a return of 9 percent to invest in Noto’s common stock. Compute the value of Noto’s common stock today.
Jersey Medical earns $12.50 a share, sells for $100, and pays a $6 per share dividend. The stock is split two for one and a $3 per share cash dividend is declared. a. What will be the new price of the stock? Round your answer to the nearest dollar. $ b. If the firm's total earnings do not change, what is the payout ratio before and after the stock split? Round your answers to one decimal place. Payout ratio before the split: Payout ratio after the split: % %

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