QUESTION 2 The following is a partial Statement of Financial Position of Juara Bhd: Common stock (RM1.50 par) RM Paid in Capital Retained earnings Total shareholder's equity Additional info: The current market price per share is RM8. Question: a. b. C. RM 30,000,000 15,000,000 45,000,000 90,000,000 Show the effect on the shareholder's equity account if the company declares 15% stock dividend. Show the effect on the shareholder's equity account if the company declares 3 for 1 stock split. Based on answer in Q2a and Q2b, explain the effect of stock dividend and stock split to the firm's capital structure.

QUESTION 2 The following is a partial Statement of Financial Position of Juara Bhd: Common stock (RM1.50 par) RM Paid in Capital Retained earnings Total shareholder's equity Additional info: The current market price per share is RM8. Question: a. b. C. RM 30,000,000 15,000,000 45,000,000 90,000,000 Show the effect on the shareholder's equity account if the company declares 15% stock dividend. Show the effect on the shareholder's equity account if the company declares 3 for 1 stock split. Based on answer in Q2a and Q2b, explain the effect of stock dividend and stock split to the firm's capital structure.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

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Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
Question Content Area A corporation purchases 7,546 shares of its own $2 par common stock for $16 per share, recording it at cost. What will be the effect on total stockholders' equity? a. increase by $105, 644 b. increase by $120,736 c. decrease by $120, 736 d. decrease by S 105,644
Problem 2 The shareholders' equity of Tony Corporation revealed the following on June 30, 2018: Preference share, P100 par vale Preference share premium Ordinary share, P15 par value Ordinary share premium Ordinary share subscribed Retained earnings Notes payable Subscriptions receivable - ordinary P230,000 80,500 525,000 275,000 5,000 190,000 400,000 40,000 28. How much is the legal capital? 29. Using the data in problem #2, how much is the additional paid in capital? 30. Using the data in problem #2, how much is the total shareholders' equity? Problem 3 A corporation declared a 40% share dividend on its 60,000 shares of P20 par ordinary shares on a day when the market price is P50. 31. How much was debited to retained earnings on the date of declaration? 32. Using information in problem #3, what is the peso dividend per ordinary share? 33. Using information if problem #3 and assuming the share capital dividend declared is 4/40, what is the share premium from stock dividends?
Analyse the information given in the table below and answer the questions below:Details Company A Company BShare price R60 R90Number of ordinary shares issued 10 000 000 10 000 000Market capitalisation 600 000 000 900 000 000Annual earnings R90 000 000 R120 000 000Earnings per share A BPrice/ Earnings (P/ E) Ratio C DREQUIRED:Please note that all theoretical answers should be in your own words and not directly from yourtextbook or any other source. Remember to add a list of resources (correctly referencedaccording to the Harvard method) at the end of your assignment. Calculate the missing amounts for A ‐ D.Round off your answers to 2 decimal places.
Problem 1 (Adapted)The shareholders’ equity of Yelan Company showed the following account balances on December 31, 2018:Share capital, P100 5,000,000Share Premium 1,000,000Retained earnings 2,000,000Revaluation surplus 800,000 Compute the book value per share on December 31, 2018.
Question 1 The following information relates to a company listed on Luse- Mungwi PLC ZMK Issued share capital (1000 shares) Share premium. Reserves. Share holders funds. 6% Irredeemable Debentures. 9% Redeemable Debentures. Bank loan. Total Long Term Liabilities. Million 4 000 2 600 290 6,890 2,800 2,900 1 000 6 700 The current cum interest market value per k100 units is k103 and k105 fir the 6% and 9% Debentures respectively. The 9% Debenture is redeemable at par in 10 years time. The bank loan bears interest rate of 2% above the base rate (current base rate is 15%). The current ex-div market price of shares is k1, 100 and a dividend of K100 per share which is expected to grow at a rate of 5% per year has just been paid. The effective corporation tax rate for Mungwi is 30%. Required: A) Calculate the effective after tax weighted Average Cost of Capital (WACC) fir Mungwi PLC
Ques 4 From the following information calculate (i) Earning per share (ii) Book value per share (iii) Dividend payout ratio (iv) Price earning ratio Particulars 70,000 equity shares of Rs. 10 each Net Profit after tax but before dividend Market price of a share Dividend declared @ 15% (Rs.) 7,00,000 1,75,000 13
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Problem #30 Preparation of the Shareholders' Equity Section of a Statement of Financial Position Preparation of the Shareholders' Equity Section of a Statement of Financial Position Corporation on June 30, 2019. Each account has a normal balance. The accounts listed below were taken from the general ledger of the Liggayu corporation on June 30, 2019. Each account has a normal balance. Ordinary Shares P1,300,000 Share Premium- P 325,000 Preference Subscribed Ordinary Shares Ordinary Shares Dividend 100,000 Share Premium-Treasury 17,500 62,500 Donated Capital Distributable 70,000 Treasury Stock-Ordinary (3,000 shares) Share Premium-Ordinary Retained Earnings: 117,500 2,075,000 Unappropriated Appropriated for Plant Expansion 1,870,000 7% Preference Shares 250,000 125,000 7% Preference Shares- Subscribed 25,000 Additional Information: a. Preference share has a par value of P50 per share. Liggayu was authorized to issue 10,000 shares. The preference share is cumulative and participating. b.…