The company with the common equity accounts shown here has decided on a 4-for-1 stock split. The firm's 75-cent-per-share cashdividend on the new (postsplit) shares represents an increase of 10 percent over last year's dividend on the presplit stock.Common stock ($1 par value)Capital surplusRetained earningsTotal owners' equity$ 225,000535,0002,968,500$ 3,728,500a. What is the new par value of the stock?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.b. What was last year's dividend per share?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.a. New par valueb. Dividends per share last yearper share

Stock split means to increase the number of the company's outstanding shares and decreases the value…

Answered: The company with the common equity…

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

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Sierra Co. has the following shareholders’ equity accounts: 4% Preference Share, P5 par P100,000 Ordinary share, P3 par P150,000, Accumulated Profit P50,000. Dividends have not been declared for 3 years including the current year. On October 1, the Board of Directors declared a cash dividend of P40,000. Assuming that the preference share is fully participating and cumulative, Compute for the dividend per share for preference share.
The company with the common equity accounts shown here has decided on a two-for-one stock split. The firm’s 35-cent-per-share cash dividend on the new (postsplit) shares represents an increase of 5 percent over last year’s dividend on the presplit stock. Common stock ($1 par value) $ 490,000 Capital surplus 1,557,000 Retained earnings 3,882,000 Total owners’ equity $ 5,929,000 a. What is the new par value of the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What was last year’s dividend per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Wookie Inc. has the following shareholders equity information at the beginning of the year: 1000 shares-$5 par value, issued and outstanding: $5,000 Additional Paid-In Capital: $45,000 Retained Earnings: $15,000 Instead of a stock split, a 5% stock dividend is declared. What would the above amounts be after the stock dividend?
The company with the common equity accounts shown here has declared a 12 percent stock dividend at a time when the market value of its stock is $59 per share. Common stock ($1 par value) $ 400,000 Capital surplus 1,572,000 Retained earnings 3,864,000 Total owners’ equity $ 5,836,000 Show the new equity account balances after the stock dividend distribution
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Based on the information given below on Harmony Incorporated calculate the following: 1) Net Income; 2) Change to Retained Earnings; 3) EPS; 4) Dividends Per Share: 5) Dividend Yield EBIT Interest expense Tax 25,000,000 40% Preferred shares outstanding&div 200,000 ($8 each) Common shares outstanding Dividend Payout ratio Current stock price 2,000,000 50% $30
Assume that a company paid $6 per share to re-purchase 1,100 of its $3 par value common stock. The purchase of this treasury stock: Group of answer choices increased total equity by $6,600 increased total equity by $3,300 decreased total equity by $3,300 decreased total equity by $6,600
se Home Help Stock split versus stock dividend-Firm Mammoth Corporation is considering a 3-for-2 stock split. It currently has the stockholders' equity position shown. The current stock price is $120 per share. The most recent period's earnings available for common stock is included in retained earnings. $ 1,000,000 700,000 1,700,000 Preferred stock Common stock (140,000 shares at $5 par) Paid-in capital in excess of par Retained earnings gnments 10,000,000 dy Plan Total stockholders' equity $13,400,000 a. What effect on Mammoth's equity account would result from the stock split? b. What chanqe in stock price would you expect to result from the stock split? ults arson eText a. If the firm declares a 3-for-2 stock split, the new balance in the common stock account after the split is $ (Round to the nearest dollar.) ltimedia Librai nancial Calculat napter Resource Enter vour answer in the answer box and then click Check Answer. ynamic Study Modules 16 parts remaining Clear All Check…
Assume that a company has the following information: Common Stock Information: # of shares issued and outstanding Par value per share 20,000 $9 Stockholders' Equity section of the Balance Sheet: Common Stock $180,000 Additional Paid in Capital Retained Earnings Total Stockholders' Equity $3,000,000 $4,820,000 $8,000,000 The company has the option of EITHER announcing a 3:1 stock split OR declaring a 200% stock dividend. Fill in the blanks below to show the stockholders' equity balances under each of these options. After After Current 3:1 200% Situation Stock Split Stock Dividend Common Stock Information: # of shares issued and outstanding 20,000 Par value per share $9 Stockholders' Equity section of the Balance Sheet: Common Stock $180,000 Additional Paid in Capital $3,000,000 Retained Earnings $4,820,000 Total Stockholders' Equity $8,000,000 II IIII
Pettygrove Company had 1,500,000 shares of $10 par value common stock outstanding. The amount of additional paid-in capital is $7,500,000, and Retained Earnings is $2,250,000. The company issues a 2-for-1 stock split. The market price of the stock is $13. What is the balance in the Common Stock account after this issuance? Multiple Choice $30,000,000 $34,500,000 $15,000,000 $22,500,000
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The owners' equity accounts for Mars International are shown here: Common stock ($.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…

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