The Athletic Village has done very well the past year, and its stock price is now trading at $94 per share. Management is consideringeither 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' equityaccounts, shares outstanding, par value, and share price. (Round "Par value per share" to 3 decimal places.)Common stock, $0.01 par valueAdditional paid-in capitalTotal paid-in capitalRetained earningsTotal stockholders' equityShares outstandingPar value per shareShare price$$$$Before1030,99031,00015,60046,6001,0000.0194After 100%Stock DividendAfter 2-for-1Stock Split

The stock dividend affects the total shareholders equity of the business. The share dividend affects…

Answered: The Athletic Village has done very well…

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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A company’s preferred stock pays an annual dividend of 4.5 percent and is currently selling for $60, and there are 100,000 shares outstanding. 1. determine the company preferred stocks and the cost of preferred stocks.
Suppose a stock had an initial price of $80 per share, paid a dividend of $.60 per share during the year, and had an ending share price of $88. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $50. Compute the percentage total return, dividend yield, and capital gains yield. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
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?
Research walmart and Review its most recent 10-K report and announcement of quarterly or annual dividends per share, an announcement of a stock split of one to two and the purchase of treasury stock. Choose ONE of the questions below to discuss: Discuss the primary reporting alternatives the company has for the repurchase of its own shares and how each option would affect total shareholders’ equity. How would the stock split of one for two be accounted for and how would it affect shareholder’s equity and why? How would the company account for the cash dividends from declaration to the date of payment? What are the important dates for dividends payment and how would it affect the balance sheet and why? Work to demonstrate your understanding of the material from this module and, where necessary, include your sources.
Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. (Click on the following icon in order to copy its contents into a spreadsheet.) Return for the entire period is %. (Round to two decimal places.) Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $33.88 $30.67 $29.49 $32.38 $39.07 $41.99 Dividend $0.17 $0.17 $0.17 $0.17
In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the terminal stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.90. The dividends are expected to grow at 11 percent over the next five years. In five years, the estimated payout ratio is 48 percent and the benchmark PE ratio is 36. a. What is the target stock price in five years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the stock price today assuming a required return of 13 percent on this stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Your corporation currently has 200,000 shares of stock outstanding that sells for $50.00 per share. What will be the amount of shares outstanding and the share price after the reverse stock split. Please show your calculations in the space provided.Your corporation declared a three-for-six reverse stock split.
Bogart Company is considering two alternatives. Alternative A will have revenues of $149,900 and costs of $103,900. Alternative B will have revenues of $184,300 and costs of $123,800. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Alternative Alternative Net Income Increase (Decrease) Revenues 24 2$ Costs Net Income$ is better than
You have 35,000 shares of preferred stock outstanding in the market, with a current price of $124 per share. What is the cost of preferred stock if the dividend per share is $6.20? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) Cost of preferred stock %
Using the P/E multiples approach to valuation, What is the estimated price of a stock if the firm’s P/E ratio is 18.2 and it’s earnings are $452,000? Assume that there are 100,000 shares of stock outstanding.
Nissan Company gave out 45 pesos dividend per share for its common stock. The market value of the stock is 114 pesos. Determine the stock yield ratio. (Show your complete solution. Then, encircle your final answer.)

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