Stock DividendsThe company with the common equity accounts shownhere has declared a 15 percent stock dividend when the market value of its stock is$53 per share. What effects will the distribution of the stock dividend have on theequity accounts?Common stock ($1 par value)Capital surplusRetained earningsTotal owners' equity$ 245,000618,0002,758,300$3,621,300

Number of shares outstanding = common stock value / par value per share…

Answered: Stock Dividends The company with the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The owners' equity accounts for Mars International are shown here: Common stock ($.50 par value) Capital surplus Retained earnings Total owner's equity Please show the equity accounts will change if: a. The company declares a 5-for-1 stock split. How many shares are outstanding now? What is the new par value per share? b. The company declares a 1-for-4 reverse stock split. $20,000 210,000 587,300 $817,300 c. The balance sheet for Mars International is shown below in Market value terms. There are 12,000 shares of stock outstanding. Market Value Balance Sheet Equity $817,300 Cash $ 99,660 Fixed assets 717,640 Total $817,300 Total $817,300 The company has declared a dividend of $1.45 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? d. suppose the company has announced it is going to repurchase $17,400 worth of stock. What effect…
The Phibbs Company paid total cash dividends of $200,000 on 25,000 outstanding common shares. On the most recent trading day, the common shares sold at $80. What is this company's dividend yield? Multiple Choice 25% 6.4% 16.9% 10% X
Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $4.14 per share. Preferred stock Common stock (300,000 shares at $0.93 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity a. Show the effects on the firm of a cash dividend of $0.20 per share. b. Show the effects on the firm of a 1% stock dividend. c. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends? a. The balance in preferred stock after the $0.20 cash dividend is $ (Round to the nearest dollar.) $ 99,000 279,000 184,000 390,000 $952,000
A stock pays an annual dividend of $1.18 18A stock pays an annual dividend of $1.18 per share calculate the dividends paid to a shareholder who has 315 shares of the company stock.
Stock Dividend Comparison Although Oriole Company has enough retained earnings legally to declare a dividend, its working capital is low. The board of directors is considering a stock dividend instead of a cash dividend. The common stock is currently selling at $33 share. The following is Oriole's current shareholders' equity: Common stock, $10 par $500,000 1,000,000 Additional paid-in capital on common stock Total contributed capital $1,500,000 Retained earnings 1,200,000 $2,700,000 Total shareholders' equity Required: 1. Assuming a 15% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole Company Stockholders' Equity Common stock, $10 par Additional paid-in capital on common stock Total contributed capital Retained earnings Total shareholders' equity 2. Assuming, instead, that a 30% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole…
Stockholder Profitability Ratios The following information pertains to Capital Corporation: Net income $2,420,000 Average common equity $18,250,000 Preferred stock, $10 par, 310,000 issued, 10% cumulative $3,100,000 Average common shares outstanding 675,000 Required: Calculate the return on common equity and the earnings per share.
Dividends Per Share Windborn Company has 30,000 shares of cumulative preferred 1% stock, $150 par and 50,000 shares of $10 par common stock. The following amounts were distributed as dividends: 20Y1 20Y2 18,000 135,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. 20Y3 20Y1 20Y2 20Y3 $112,500 Preferred Stock (dividends per share) G LA Common Stock (dividends per share) U S
A company declared and distributed an 8% dividend on 800,000 shares of $5 par value common stock outstanding. Market price per common share on this date was $25. What is the debit to Retained Earnings for the value of the stock dividend? O $64,000 O $320,000 O $1,600,000 O $40,000,000 79°F Rair
Asap A corporation purchases 89000 shares of its own $30 par common stock for $47 per share, recording it at cost. What will be the effect on total stockholders’ equity? Decrease by $4183000 Increase by $4183000 Increase by $2670000 Decrease by $2670000

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