You own 5,000 shares of a firm’s common stock. The firm has a total of 500,000 shares outstanding, with each share being priced at $5 per share. The firm has just declared a six-for-four stock split. How many shares will you end up with, and what will be the price per share after the stock split? Select one: a. 1,600 shares; $6.25 b. 3,200 shares; $3.13 c. 3,200 shares; $4.95 d. 7,500 shares; $5 e. 7,500 shares; $3.33

Q: You sold to open 10 25-strike calls for $2.10 each on a stock you own. You own 1,200 shares of the…

A: The strike price is $25 The call premium is $2.10 The current selling price of the stock is $23.66…

Q: On March 1, Florida Blue instituted a 5-for-2 stock split. Before the split, Florida Blue had 150…

A: The share split is a type of corporate event in which the larger value of stock is split into…

Q: Wellington Jumbo Crab's stock currently sells for $70 per share with 1 million shares outstanding.…

A: Issue of shares is one of the important source of financing being used by the business. It can be…

Q: You own 20,000 shares of National Co. stock. The company is planning to issue a stock dividend.…

A: Introduction Market value of shares owned after stock dividend is P275,000.

Q: Chapter 11 Assignment CP 11-2 Bagan Corporation, a profitable growth company with 200,000 shares of…

A: 1) EPS=Net profit after tax and preference dividendNo. of equity shares W.Notes Interest expense on…

Q: Suppose you own 10% of Neptune Corporation's 300,000 outstanding common shares. The stock was…

A: Total Shares = 300,000 Shares held = 10% * Total Shares = 10% *300,000 = 30,000 shares Share price =…

Q: Harper Industries has $700 million of common equity on its balance sheet; its stock price is $32 per…

A: Stockholders' equity, sometimes known as shareholders' equity, is the remaining stake in a company's…

Q: Preferred stockholder expected return) You own 100 shares of Dalton Resources preferred stock, which…

A: Dividend - This is the amount which is paid by the company to its shareholders. Dividend includes…

Q: Damron, Incorporated, has 230,000 shares of stock outstanding. Each share is worth $84, so the…

A: The theoretical price of the stock following the company's decision to issue additional shares at a…

Q: You own 1,000 shares of Gables Co. The shares are currently selling for $24. The company has just…

A: Answer :-  When a company announced stock split, the number of shares of the  company increases, but…

Q: A corporation originally issued $10 par value common stock for $13 per share. It purchased 2,000…

A: Common Stock - A security that symbolizes ownership in a firm is called common stock. Common stock…

Q: If the company has 4 million shares outstanding, and these shares are trading at a price of $8.24…

A: The market price of a company's shares reflects how investors perceive the value and potential of…

Q: Suppose you own 5,000 common shares of Laurence Incorporated. The EPS is $9.00, the DPS is $5.00,…

A: a) No. of shares after stock split = Existing shares * 2/1

Q: 2. Homework Chapter 10

A: In Stock split offers are given to the present investor's in extent of their current offers. It is…

Q: West Wind, Inc. has 4,900,000 shares of common stock outstanding with a market value of $75 per…

A: Earnings per share is calculated using following equation Earnings per share  = Net income / Number…

Q: In total how much did it cost the company to buy back its own shares of stock  how much did the…

A: The treasury stock includes the own shares of the company that are purchased from the shareholders…

Q: CBA Inc. has 400,000 shares outstanding with a $5 par value. The shares were issued for $12. The…

A: Solution:Stock dividend means payment of dividend shareholders in form of shares.

Q: Harper Industries has $500 million of common equity on its balance sheet; its stock price is $20 per…

A: The other name of common stock is ordinary stock. Company capital is divided into small parts, each…

Q: You took a short position on 200 shares at $54. You have equity of $10,500. Assets Liabilities and…

A: Initial Margin is the equity amount the investor has to deposit as a security for the short sell

Q: Weiland, Incorporated, has 440, 000 shares outstanding that sell for $94 per share. The company…

A: A stock split is a corporate action that the company undertakes which increases the number of shares…

Q: 3- XYZ Corp. decides on a 5 for 1 split of its stock. You own 35 shares on the day of the split. The…

A: Shares owned after split = Shares owned before split * Stock split ratio

Q: Suppose you own 5,000 common s of Laurence Incorporated. The EPS $8.00, the DPS is $5.00, and the st…

A: companies to split the stock so that after stock split there are large number of shares and prices…

Q: Wellington Jumbo Crab's stock currently sells for $100 per share. Last week the firm issued rights…

A: Given:Stock price = $100 per shareSubscription price = $20 per shareNumber of rights = 3

Q: West Wind, Inc. has 4,700,000 shares of common stock outstanding with a market value of $60 per…

A: given data  no of common shares outstanding = 4,700,000 market value 60 per share expected net…

Q: What is your rate of return?

A: The rate of return is employed to assess the profitability of an investment over a given time frame.…

Q: 7. An investor owns 500 shares of stock in a firm with a debt/equity ratio = 1.0. The investor…

A: The investors owns share in equity = 500 shares * $2 = $1,000. Debt / equity = 1, it means that the…

Q: On 30 April, CBA declares a 4:1 share split. If you had 2 million shares each worth $40 before the…

A: A share split is a process of dividing one share issued into multiple shares. The number of shares…

Q: Assume a company declares a 3-for-2 stock split. The pre-split price is $300 per share. You own 100…

A: Given, Split = 3 for 2 stock Pre split price = $300 per share Shares owned = 100 shares

Q: On January 1, you sold short two round lots (.e.. 200 shares) of Four Sisters stock at $52 per…

A: When a seller has a short position, they anticipate or predict that the asset's value will drop or…

Q: Kale Corporation stock is selling for $15 a share. You would like to purchase as many shares of this…

A: A margin account refers to an account used for purchasing securities where the investor has to pay…

Q: a. If the underwriting spread is 5%, how many shares will the company need to issue in order to be…

A: Offer price = P = $ 32 / share; Underwriting spread = S = 5%; Funds to be raised, F = $ 5 million =…

Q: The Gable Inn is an all-equity firm with 16,000 shares outstanding at a value per share of $14.50.…

A: In the given question we need to calculate the number of shares of stock will be outstanding once…

Q: The common shares of Hoover Inc. are currently selling at $143 per share. The directors want to…

A: a. Prepare journal entry to record the board votes a 2-for-1 stock split. Particular debit credit…

Q: a public company has 1,000 common stock shares outstanding, where each share has a $10 par value.…

A: The total par value of shares outstanding before and after the stock split remains the same.

Q: What is the rate of return when 20 shares of Stock A, purchased for $15/share, are sold for $340?…

A: The rate of return is the percentage of profit or loss above the investor's initial investment.

Q: Sunshine Corporation is contemplating issuance of a 10% preferred stock that they expect to sell for…

A: Cost of stock refers to an expense that are being charged over the investment amount for buying the…

Q: 18. The owners' equity accounts for Buel Industries include common stock of $24,000 with a $1 par…

A: 1.Shares outstanding after reverse stock split = Shares outstanding before reverse stock split *…

Q: 1. How might a 4% stock dividend influence a shareholder currently holding 10% of a company with a…

A: Stock dividend = 4%Current ownership = 10%Stock price = $30Total earnings = $2,500,000Shares…

Q: Equity: 120,000 shares at $1 each. Share premium: $22,000 The company decides to issue 1:3 shares.…

A: Share Premium- This is the amount which is over and excess of nominal value. If Say for example if…

Q: Stephanie's C'.lfes, lnc., Declared a dividend of $ 1.30 per share for record holders on Tuesday,…

A: Formula: Total Dividend amount = Dividend per share x Total outstanding shares. Multiplying total…

Q: Wellington Jumbo Crab’s stock currently sells for $100 per share. Last week the firm issued rights…

A: Given: Stock price = $100 per share Subscription price = $20 per share Number of rights = 3

Q: You started with a market price of $30 and 10,000 shares. Calculate number of shares after the split…

A: Market Price = $30 A number of shares = 10,000 shares a. 2 for 7 split b. 3 for 2 split c. 2 for 5…

Q: A company has 65,000 common shares at a market price of $42 per share. If the average issue price…

A: Stock Dividend - Stock Dividend is the issuance of Shares in the form of dividend. It is the…

Q: X Company's stock is selling for $40 and you've decided to purchase as many shares as you possibly…

A: Current market price = $40 Amount available = $12,000 Initial margin requirement = 60% 12,000 = 60%…

Q: On October 1, Hawking Corp. had 40,000 shares of $2 par value common stock outstanding before it…

A: Stock split means where company decided to increase the number of share and decrease the par value…

Q: The board of directors of Mountain Hotels has declared a dividend of $1,500,000. The company has…

A: The dividend is declared to all the shareholders from the retained earnings of the business. The…

Q: Company X’ currently has 80,000 shares outstanding that are trading at OMR 8.400 per share. The…

A: No. of shares issued to distribute stock dividend = No. of  shares outstanding x stock dividend rate…