Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
14th Edition
ISBN: 9780133507690
Author: Lawrence J. Gitman, Chad J. Zutter
Publisher: PEARSON
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Chapter 14, Problem 14.5WUE
Summary Introduction
To determine: The stock holders’ equity
Introduction:
The amount of value given to the business by the shareholders as capital plus earnings and after the exclusion of dividend is termed as
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Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 125 shares of preferred stock and 1,700 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2024:
March 1
Issue 1,700 additional shares of common stock for $18 per share.
April 1
Issue 175 additional shares of preferred stock for $27 per share.
June 1
Declare a cash dividend on both common and preferred stock of $0.65 per share to all stockholders of record on June 15.
June 30
Pay the cash dividends declared on June 1.
August 1
Purchase 175 shares of common treasury stock for $15 per share.
October 1
Resell 125 shares of treasury stock purchased on August 1 for $17 per share.
Nautical has the following beginning balances in its stockholders’ equity accounts on January 1, 2024: Preferred Stock, $1,250; Common Stock, $1,700; Additional Paid-in Capital, $18,200; and Retained Earnings, $10,200. Net income…
Below is United Delivery Service’s (UDS) stockholders' equity for the year ended 2022:
Common Stock, $3 par value
$60,000
Paid-in Capital in Excess of Par—Common
35,000
Retained Earnings
100,000
Treasury Stock
(10,000)
In March, UDS declares and distributes a 12% stock dividend when the market value of the stock is $6.
1) Prepare UDS's March end stockholders' equity section.
2) How would retained earnings change if UDS doubled their number of shares through a 2 for 1 stock split?
The total stockholders' equity of Honest Corporation is P748,125 on December 31, 2020, with total 50,000 shares issued. The authorized capital stock is P1,000,000 at P10 par value and there are 2,500 treasury shares. What is the book value per share?
Chapter 14 Solutions
Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
Ch. 14.1 - What two ways can firms distribute cash to...Ch. 14.1 - Why do rapidly growing firms generally pay no...Ch. 14.1 - The dividend payout ratio equals dividends paid...Ch. 14.2 - Prob. 1FOPCh. 14.2 - Prob. 14.4RQCh. 14.2 - Prob. 14.5RQCh. 14.2 - Prob. 14.6RQCh. 14.3 - Does following the residual theory of dividends...Ch. 14.3 - Contrast the basic arguments about dividend policy...Ch. 14.4 - Prob. 14.9RQ
Ch. 14.5 - Describe a constant-payout-ratio dividend policy,...Ch. 14.6 - Why do firms issue stock dividends? Comment on the...Ch. 14.6 - Compare a stock split with a stock dividend.Ch. 14 - Prob. 1ORCh. 14 - Prob. 14.1STPCh. 14 - Prob. 14.1WUECh. 14 - Prob. 14.2WUECh. 14 - Prob. 14.3WUECh. 14 - Prob. 14.4WUECh. 14 - Prob. 14.5WUECh. 14 - Dividend payment procedures At the quarterly...Ch. 14 - Prob. 14.2PCh. 14 - Prob. 14.3PCh. 14 - Dividend constraints The Howe Companys...Ch. 14 - Prob. 14.5PCh. 14 - Prob. 14.6PCh. 14 - Prob. 14.7PCh. 14 - Prob. 14.8PCh. 14 - Stock dividend: Firm Columbia Paper has the...Ch. 14 - Cash versus stock dividend Milwaukee Tool has the...Ch. 14 - Stock dividend: Investor Sarah Warren currently...Ch. 14 - Stock dividend: Investor Security Data Company has...Ch. 14 - Stock split: Firm Growth Industries current...Ch. 14 - Prob. 14.14PCh. 14 - Stock split versus stock dividend: Firm Mammoth...Ch. 14 - Prob. 14.16PCh. 14 - Prob. 14.17PCh. 14 - Prob. 14.18PCh. 14 - Prob. 14.19P
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