Purchase Solution

E12-15 Omar Coporation Exercise

Not what you're looking for?

Ask Custom Question

E12-15
On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.

Instructions
Complete the tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and book value per share. (If answer is zero, please enter 0. Do not leave any fields blank. Round book value per share to 2 decimal places, e.g. 10.50.)

Purchase this Solution

Solution Summary

This file contains detailed illustrations on the effects of alternative actions (stock dividend or stock split) on the components of stockholders' equity, outstanding shares, and book value per share.

Purchase this Solution


Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Learning Lean

This quiz will help you understand the basic concepts of Lean.