Please don't give image format b. Restate the EPS and share price. (Assume the P/E ratio remains constant) (Do not round intermediate calculations. Round the finalanswers to 2 decimal places.)EPSShare pricec. How many shares would an investor end up with if they originally had 70 shares?Number of sharessharesd. If an investor originally had 70 shares, what is the investor's total investment worth before and after the stock dividend if the P/Eratio remains constant? (Do not round intermediate calculations.)Before stock dividendAfter stock dividend iTotalInvestment$e. This part of the question is not part of your Connect assignment Vegas Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years but is currently contemplatingsome kind of dividend. The capital accounts for the firm are:Common stock (2,400,000 shares)Retained earningsNet worth$12,000,00023,000,000$35,000,000The 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 dividendCommon stockRetained earningsNet worth

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Answered: Vegas Products sells marked playing…

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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Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo's common stock was selling for $21.32 but by year end it was only $20.17. If the firm paid a total cash dividend of $2.49 during the year, what rate of return would you have earned if you had purchased the stock exactly one year ago? What would your rate of return have been if the firm had paid no cash dividend? Question content area bottom Part 1 The rate of return you would have earned is enter your response here%. (Round to two decimal places.) Part 2 The rate of return you would have earned if the firm paid no cash dividend is enter your response here%. (Round to two decimal places.)
Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo's common stock was selling for $19.93 but by year end it was only $17.82. If the firm paid a total cash dividend of $1.98 during the year, what rate of return would you have earned if you had purchased the stock exactly one year ago? What would your rate of return have been if the firm had paid no cash dividend? Question content area bottom Part 1 The rate of return you would have earned is enter your response here%. (Round to two decimal places.)
Big Industries has the following market-value balance sheet. The stock currently sells for $20 a share, and there are 1,000 shares outstanding. The firm will either pay a $1 per share dividend or repurchase $1,000 worth of stock. Ignore taxes Assets Liabilities and Equity Cash $ 2,000 Debt $10,000 Fixed assets 28,000 Equity 20,000 If total earnings of the firm are $2,000 a year, find earnings per share if the firm pays a dividend. Now find earnings per share if the firm repurchases stock. Find the price-earnings ratio if the firm pays a dividend. Find the price-earnings ratio if the firm repurchases stock. Adherents of the “dividends-are-good” school sometimes point to the fact that stocks with high dividend payout ratios tend to sell at above-average price-earnings multiples. Is Big Industries’ P/E ratio higher if it pays a dividend? Looking back at your answers to parts (a) to (f), do you think that the difference in P/E supports the…
Ace 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 as follows: Common stock (3,000,000 shares at $5 par) Capital in excess of par* Retained earnings Net worth *The increase in capital in excess of par as a result of a stock dividend is equal to the new shares created times (Market price - Par value). The company's stock is selling for $10 per share. The company had total earnings of $3,000,000 during the year. With 3,000,000 shares outstanding, earnings per share were $1. The firm has a P/E ratio of 10. a. What adjustments would have to be made to the capital accounts for a 10 percent stock dividend? Show the new capital accounts. Note: Do not round intermediate calculations. Input your answers in dollars, not millions (e.g. $1,230,000). Common stock Capital in excess of par Retained earnings Net worth EPS Stock price $ Number of shares $…
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The Digital Systems Company was organized two years ago to take advantage of an Internet opportunity. Investors paid $12 a share for 2 million shares with a $4 par value. In the next two years, the company had earnings of $2 million and $3 million, respectively. It paid dividends of 1.2 million and $1.3 million respectively, in those years. At the end of the first year, Digital sold another 500,000 shares of stock at $14 per share. Construct the equity section of Digital balance sheet initially and at the end of its first and second years in business.
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Tucker’s National Distributing has a current market value of equity of $10,665. Currently, the firm has excess cash of $640, total assets of $22,400, net income of $3,210, and 500 shares of stock outstanding. Tucker’s is going to use all of its excess cash to repurchase sharesof stock. What will the stock price per share be after the stockrepurchase is completed?
Big Industries has the following market-value balance sheet. The stock currently sells for $20 a share, and there are 1,300 shares outstanding. The firm will either pay a $1 per share dividend or repurchase $1,300 worth of stock. Ignore taxes. Assets Liabilities and Equity Cash $ 8,000 Debt $ 11,500 Fixed assets 29,500 Equity 26,000 a. What will be the subsequent price per share if the firm pays a dividend? b. What will be the subsequent price per share if the firm repurchases stock? (Round your answer to the nearest dollar.) c. If total earnings of the firm are $32,300 a year, find earnings per share if the firm pays a dividend. (Do not round intermediate calculations. Round your answer to 3 decimal places.) d. If total earnings of the firm are $32,300 a year, now find earnings per share if the firm repurchases stock. (Do not round intermediate calculations. Round your answer to 3 decimal places.) e. If total earnings of the firm are $32,300 a year,…

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