The owners' equity accounts for Alexander International are shown here: $ 40,000 335,000 Common stock ($0.50 par value) Capital surplus Retained earnings Total owners' equity 738,120 $1,113,120 a If Alexander stock currently sells for $25 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.

The owners' equity accounts for Alexander International are shown here: $ 40,000 335,000 Common stock ($0.50 par value) Capital surplus Retained earnings Total owners' equity 738,120 $1,113,120 a If Alexander stock currently sells for $25 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.

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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A share of stock in Bodah Corporation pays an annual dividend of $5. The current market price is $75. From the list of individuals below, identify who is likely to be a buyer or a seller of this stock. (Each person currently owns 100 shares) Individual Kate Keith Kyle Required Return -5% 8% 15% Expected Growth in Dividends 0% 0% 0% Buy or Sell? Buy Sell Sell
One year ago, KJ Industries stock sold for $52 a share. Over the past year, the stock has returned 16.0 percent with half of that return coming from dividend income. What is the current price of this stock? Multiple Choice O о O $56.16 $47.84 $60.32 $43.68
What is the market price of a share of stock for a firm with 100,000 shares outstanding, a book value of equity of P3,000,000, and a market/book ratio of 1.0? a. P8.57 b. P30.00 c. P85.70 d. P105.00
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Bailey's has a preferred share issue outstanding with a current price of $26.57 per share and a par value of $25. The firm is expected to pay a dividend of $1.86 per share a year from today. What would be the cost of issuing new shares of preferred equity? (Round your final answer to the nearest percentage.) O 7.44% O 6.50% O 7.00% O 8.00%
Apisco Tiger Inc. stock is currently selling for $72.00 a share. The stock has a dividend yield of 3.50 percent. How much dividend income will you receive per year if you purchase 500 shares of this stock? Group of answer choices $1,450 $1,170 $921 $1,260 $850
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Bernard Corporation wants to obtain P4 million in its first public issue of common stock. After the issuance, the total market value of a stock is estimated at $10 million. At present, there are 120,000 closely-held shares. REQUIREMENTS: (a) What is the amount of new shares that must be issued to obtain the P4 million? (b) After the stock issuance, what will be the expected price per share?

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