Vegas Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years but is currently contempla some kind of dividend. The capital accounts for the firm are: Common stock (2,400,000 shares) Retained earnings Net worth $12,000,000 23,000,000 $35,000,000 The company's stock is selling for $20 per share, and it earned $4,800,000 during the year with 2.400.000 shares outstanding. indicating a P/E ratio of 10.
Vegas Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years but is currently contempla some kind of dividend. The capital accounts for the firm are: Common stock (2,400,000 shares) Retained earnings Net worth $12,000,000 23,000,000 $35,000,000 The company's stock is selling for $20 per share, and it earned $4,800,000 during the year with 2.400.000 shares outstanding. indicating a P/E ratio of 10.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please don't give image format
Transcribed Image Text:b. Restate the EPS and share price. (Assume the P/E ratio remains constant) (Do not round intermediate calculations. Round the final
answers to 2 decimal places.)
EPS
Share price
c. How many shares would an investor end up with if they originally had 70 shares?
Number of shares
shares
d. If an investor originally had 70 shares, what is the investor's total investment worth before and after the stock dividend if the P/E
ratio remains constant? (Do not round intermediate calculations.)
Before stock dividend
After stock dividend i
Total
Investment
$
e. This part of the question is not part of your Connect assignment
Transcribed Image Text:Vegas Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years but is currently contemplating
some kind of dividend. The capital accounts for the firm are:
Common stock (2,400,000 shares)
Retained earnings
Net worth
$12,000,000
23,000,000
$35,000,000
The company's stock is selling for $20 per share, and it earned $4,800,000 during the year with 2,400,000 shares outstanding.
indicating a P/E ratio of 10.
a. Restate the capital accounts at year end after the 10% stock dividend
Common stock
Retained earnings
Net worth
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