Runner Inc. is considering one of the three following courses of action: (1) paying a $0.6 cash dividend, (2) distributing a 4% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $14 per share. Help Runner make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,261,000 $ $231,000 $ 560,000 470,000 1,030,000 $1,261,000 100,000 $ After Cash Dividend $ After Stock Dividend After Stock Split

Runner Inc. is considering one of the three following courses of action: (1) paying a $0.6 cash dividend, (2) distributing a 4% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $14 per share. Help Runner make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,261,000 $ $231,000 $ 560,000 470,000 1,030,000 $1,261,000 100,000 $ After Cash Dividend $ After Stock Dividend After Stock Split

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 13PB: You are a consultant working with various companies that are considering incorporating and listing...

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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?
Sipacore Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $14 per share. Help Sipacore make its decision by completing the following chart (treat each possibility independently): Total assets (1) Before Action After Cash Dividend $1,196,000 1,146,000 (2) After Stock Dividend 1,196,000 $243,000 $ 243,000 $ 243,000 $ Total liabilities Shareholders' equity Common shares 647,000 Retained earnings Total shareholders' equity 647,000 306,000 256,000 953,000 903,000 710,000 306,000 953,000 Total liabilities and shareholders' equity $1,196,000 $ 1,146,000 $ 1,196,000 Number of common shares 100,000 100,000 105,000
Sipacore Inc. is considering one of the three following courses of action: (1) paying a $0.4 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share.Help Sipacore make its decision by completing the following chart (treat each possibility independently): Before Action After CashDividend After StockDividend AfterStock Split Total assets $1,372,000 $enter a total amount for the first part $enter a total amount for the first part $enter a total amount for the first part Total liabilities $266,000 $enter a total amount for section one of the second part $enter a total amount for section one of the second part $enter a total amount for section one of the second part Shareholders’ equity Common shares 645,000 enter a dollar amount enter a dollar amount enter a dollar amount Retained earnings 461,000 enter a dollar amount…
On the basis of this information, calculate as many liquidity, activity, leverage, profitzit and common stock measures as you can. (Note: Assume the current market price of the common stock is $75 per share.
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Requirement 1. Compute AustinAustin Company's earnings per share for 20182018. Assume the company paid the minimum preferred dividend during 20182018. Round to the nearest cent. Select the formula, then enter the amounts to calculate the company's earnings per share for 20182018. (Abbreviations used: Ave. = average, OS = outstanding, SE = stockholders' equity, shrs = shares.) ( - ) / = Earnings per share ( - ) / = Choose from any list or enter any number in the input fields and then click Check Answer. 2 parts remaining Clear All Check Answer Data Table 2018 2017 Income Statement—partial: Net Income $6,660 $20,000 Dec. 31, 2018 Dec. 31, 2017 Balance Sheet—partial: Total Assets $200,000 $265,000 Paid-In Capital: Preferred Stock—9%, $6 Par Value;…
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Compute the following ratios for both companies for the current year, and decide which company’s stock better fits your investment strategy. Debt Ratio Earning per share of common stocks Price/earning ration Dividend payout
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