Suppose you own 5% of Coastal Corporation's 300,000 outstanding common shares. The stock was trading for $135 per share before Coastal executives announced a 3-for-2 stock split. After the split, you will own shares worth per share.

Suppose you own 5% of Coastal Corporation's 300,000 outstanding common shares. The stock was trading for $135 per share before Coastal executives announced a 3-for-2 stock split. After the split, you will own shares worth per share.

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

See similar textbooks

Related questions

Q: Last year you purchased 100 shares of stock in your favorite company, ABC Corp., for your investment…

A: Yes, $6,000 ($60 * 100 shares) will be reported as gross income for tax return.

Q: Ali Moosa Co has issued 50,000 ordinary shares (equity shares) of OMR0.500 baisa each and 20,000 6%…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: At present, total outstanding shares of X Corp is 100,000 shares. X Corp issued additional 200,000…

A: According to the given question, we are required to compute the number of shares to be issued to the…

Q: On June 1, 2020, Sunny Corporation declared a share capital dividend entitling its shareholders to…

A: Treasury stocks are the stocks held by the company itself pursuant to its purchase from the market.

Q: The board of directors of mountain hotels has declared a dividend of $1,900,000. The company has…

A: Solution:- Dividend is a part of amount of earnings distributed to shareholders. The preference…

Q: The New Dance LLC. has 200 shares of oustanding; cumulative preferred stock that calls quarterly…

A: Preferred stock is a type of combination of debt and equity and has preference over common stock in…

Q: You purchased some shares in FlyingDutchman.com on 26 August 2022, at price $54.86. On 28 January…

A: Given, The purchase price of stock is $54.86. Dividends paid $1.69 and $1.93

Q: You own 100 shares of stock of unlevered Shaan Company which has 1,000 shares outstanding. Shaan…

A: Here,

Q: If your corporation declares a stock repurchase how many shares of stock can your corporation…

A: Answer:-182 shares Number of stock repurchased = anoubt /stock price Given amount =10000 Price = 55

Q: Wyclef has an investment of 500 shares of stock in Partridge Capital valued at $12 each, Partridge…

A: Solution:Stock dividend means the issue of additional shares to the current shareholders in form of…

Q: The firm has one million shares outstanding and earnings of $6 million before recording the new…

A: Formula :- Earnings per share (EPS) is calculated as a company's profit divided by the outstanding…

Q: 3) JetNew issued 50,000 common shares on January 1, 2020 at $8 each. Preferred shares were issued on…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: You own 110 shares of stock in Halestorm, Incorporated, that currently sells for $81.40 per share.…

A: Stock valuation Ownership of the company is represented by shares. The value of the stock of a…

Q: You own 30,000 shares of National Corporation stock. The company is planning to issue a stock…

A: Calculation of Market value of shares owned after stock dividend Particulars Amount (P) Market…

Q: You own 1,000 shares of Gables Co. The shares are currently selling for $24. The company has just…

A: Answer :- When a company announced stock split, the number of shares of the company increases, but…

Q: JF Corporation issued 2M shares through an IPO reflecting 30% ownership of the firm. The other 70%…

A: IPO is initial public offering issued by the company to raise funds for the company. The company…

Q: Mr. Cruz bought 5,000 MXT shares at P2.00. He received cash dividends of P0.20 per share. The par…

A: Number of shares = 5000 Purchase price = P2.00 Sale price = P3.00

Q: First Citrus Bank is scheduled to payout a 6% stock dividend. If I own 250 shares, how many shares…

A: In stock dividend, a firm issue new shares instead of paying dividend in cash. The number of shares…

Q: s fallen on hard times and receives a $6M Se r 6M shares at $1 per share. ck pool have claims on 3M…

A: Series A Investment:Investment Amount: $6MNumber of Series A Shares: 1MSeries A Price per Share: $6

Q: Hootie and the Blowfish have net income of $1,000,000. They pay preferred dividends of 100,000…

A: We know that EPS is calculated on earning available to common/Equity/Ordinary equity shares. We can…

Q: Southwest Tires declares a 7-for-5 stock split. The current price is $50 per share, and you own…

A: A stock split is a business decision whereby a corporation splits its current shares among several…

Q: Suppose you own 71,000 shares of common stock in a firm with 2 million total shares outstanding. The…

A: New shares you can purchase = number of shares own x number of right share/total share outstanding

Q: An investor owns some stock in Harry's Pottery Inc. The stock recently underwent a 5-for-4 stock…

A: Shares Shares are defined as the monetary securities signifying the capital of company. It is…

Q: Jamaica Corporation bought 160,000 shares of Love Corporation for 60 each. One month from purchase,…

A: A stock split :Existing shares is divided into multiple shares. Eg: 2-for-1 stock split: An…

Q: The price of a stock starts at $60 per share. The stock price rises at an average rate of $0.75 per…

A: The dividend yield is the yearly dividend payments to a firm's shareholders expressed as a…

Q: You have decided to retire and want to sell your shares in a closely held, all equity firm. The…

A: Share repurchase is referred to as a transaction where a company buys back its own shares from the…

Q: On 30 April, CBA declares a 4:1 share split. If you had 2 million shares each worth $40 before the…

A: A share split is a process of dividing one share issued into multiple shares. The number of shares…

Q: Nirvana have net income of $1,000,000. They pay preferred dividends of 100,000 during the year and…

A: EPS= 94.73 Explanation: EPS= (Net income- Dividents to preferred shares)/ average outstanding shares…

Q: XYZ has 400,000 shares of common stock outstanding, a P/E ratio of 8, and $500,000 in net income.…

A: P/E = 8 Price per share/ Earnings per share = 8 Earnings per share = $500,000/400000 Earnings per…

Q: Last year, you purchased 520 shares of Forever, Incorporated, stock at a price of $45.66 per share.…

A: In this question, we are required to determine the capital gains yield.

Q: Indicate whether the following statements are true or false. If the statementis false, explain…

A: Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing…

Q: e has 500,000 authorized shares of $2 par value common stock, with 110,000 shares issued and…

A: Stock splits are done by the company for many reasons and it is done for many possible reasons and…

Q: You purchase 280 shares of stock at $37.80 per share. Several months later you sell the shares at…

A: Total number of stocks purchased is 280 Purchase price per share is $37.80 Selling price per share…

Q: The Bert Corp. and Ernie, Inc., have both announced IPOs. You place an order for 700 shares of each…

A: IPO is initial public offering made by the company to common investors in the stock market.

Q: Broadbill Corporation (E&P of $1,650,000) has 1,000 shares of common stock outstanding. The shares…

A: OGE issued a new regulation in 2008 that established more flexible family attribution standards for…

Q: On December 10, Daniel Co. split its stock 5-for-2 when the market value was $65 per share.Prior to…

A: Split of Shares/Stock: When an organization splits the shares, it increases the number of shares of…

Q: An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares…

A: The objective of the question is to calculate the gain or loss on the sale of 100 shares of common…

Question

Suppose you own 5% of Coastal Corporation's 300,000 outstanding common shares. The stock was trading for $135 per
share before Coastal executives announced a 3-for-2 stock split. After the split, you will own
shares worth
share.
per
O 15,000; $135
O22,500; $135
O 15,000 $90
O 30,000: $110
22,500; $90

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: answer

VIEW

Step 2: explanation

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Identify which of the following transaction is a primary market transaction or a secondary market transaction. Explain your answer. Michael bought 2,000 units of KSD shares at RM2.35 per share when KSD shares made an initial public offering of 20,000,000 shares in the market. Razif bought 1,000 units of LOL shares at RM 1.30 per share in the stock market.
The Windsor Corporation has 120,000 shares outstanding with a current market price of $8.10 per share. The company needs to raise an additional $36,000 to finance new expenditures and has decided on a rights issue. The issue will allow current stockholders to purchase one additional share for 20 rights at a subscription price of $6 per share. How many new shares must be issued? What will be the ex-rights stock price? If the ex-rights price were set at $7.90, would you as a potential new stockholder choose to buy shares ex-rights or buy shares at the old price and exercise your rights?
Katie Homes and Garden Co. has 13,700,000 shares outstanding. The stock is currently selling at $60 per share. If an unfriendly outside group acquired 20 percent of the shares, existing stockholders will be able to buy new shares at 25 percent below the currently existing stock price. a. How many shares must the unfriendly outside group acquire for the poison pill to go into effect? (Do not round intermediate calculations.) Number of shares b. What will be the new purchase price for the existing stockholders? (Do not round intermediate calculations. Round your answer to 2 decimal places.) New purchase price S
Heer
An investor purchased 500 shares of common stock, $25 par, for $19,250. Subsequently, 100 shares were sold for $35 per share. What is the amount of gain or loss on the sale?
In September, the board of directors of chaparral steel approved a 2 for 1 stock split. After the split, how many shares of chaparral steel stock will an investor have if he or she owned 230 shares before the split?
On December 10, Daniel Co. split its stock 5-for-2 when the market value was P65 per share. Prior to the split, Daniel had 200,000 shares of P15 par value stock. After the split, Daniel's outstanding shares would be
You currently own 600 shares of stock AAA. The stock currently trades at $3 a share. The company is contemplating a 1-for-3 reverse stock split. Which of the following best describes your position after the proposed stock split takes place? You will have 200 shares of stock with $9 a share. You will have 1,800 shares of stock with $1 a share. You will have 200 shares of stock with $9 a share. You will have 1,800 shares of stock with $9 a share.
Beverly Company announces a 200% stock dividend. Prior to the stock dividend, Beverly had 1,000,000 shares of common stock outstanding and the par value was $0.30 per share. After the stock dividend, Beverly would have: 3,000,000 outstanding shares with a par value of $0.10 per share. 3,000,000 outstanding shares with a par value of $0.30 per share. 2,000,000 outstanding shares with a par value of $0.30 per share. 500,000 outstanding shares with a par value of $0.60 per share.
You own 20,000 shares of National Co. stock. The company is planning to issue a stock dividend. Before the dividend, you owned 10 percent of the outstanding stock, which had a market value of P250,000, or P10 per share. Upon receiving the 10 percent stock dividend the value of his shares is?
Use the following information to answer the next four questions. A company begins operations on 1/1/22, selling 100,000 shares of common stock (with 500,000 shares authorized). These shares have a par value of $1/share and were originally sold for $5/share. On 3/1/22, the company repurchases 1,000 common shares for $8/share (the company does not formally retire the shares). On 5/1/22, the company resells 500 of those shares for $10/share. On 8/1/22, the company declares and executes a 2-for-1 stock split. On 12/1/22, the company declares a $0.10/share cash dividend. The date of record is 12/31/22 and the payment date is 1/10/23. Net income during 2022 was $200,000 At 12/31/22, the common shares are trading at $7/share. a) What is the balance in common stock at 12/31/22? b) What is the balance in additional paid in capital at 12/31/22? c) What is the balance in treasury stock at 12/31/22? d) What is the balance in retained earnings at 12/31/22?
A shareholder owns 15,000 shares costing P3,000,000. Subsequently, the shareholder receives notice that share is split 2-for-1. What amount of gain on sale will be recognized if 6,000 shares will be sold for P228 per share?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS