Purchase Solution

Dividends: split shares, stock dividends, rate of increase

Not what you're looking for?

Ask Custom Question

For question 3 and 4 I don't have the same answer the book has and I'm not sure where I went wrong, for question 5 I'm just lost. Thanks for your help.

Attachments
Purchase this Solution
Solution Summary

The solution reviewed the worksheet and commented on the student's workpaper. Detailed calculations are presented where the information was available including rates of increase in dividends, dividend returns on earnings. In one case, there are two solutions depending on the interpretation of the problem. Both are presented for consideration.

Solution Preview

3. you need to compare the same number of shares in both cases. Either double the dividend for double the shares, or half the dividend for the unsplit shares: 2.40 for the old + 2.80 for the new = .40 increase. 40/ 240 = 16.7

4. This one was a little harder because I'm missing a piece of information and don't have your book in front of me. For as far as you went, you are fine, but your amount of 3,025,000 is the amount to be paid ...

Purchase this Solution
Free BrainMass Quizzes
IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Lean your Process

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

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

View More Free Quizzes
Related BrainMass Solutions

  • Stocks, equity, dividends

    It may not be good for current holders because a stock split just increases the number of stocks at a lower rate rather than increases the price of the stock when the split happens.

  • company's cash dividends and annual report

    Assume that the total shares are equal to 10,000 shares, and total dividends paid are equal to $39,600. Cash dividends in 2009: As stock was split 3 for 1, the number of shares will increase by 3 times.

  • Dividends, Stock Repurchase and Policy

    stock split. 2. 2. similar to a stock split. 3. 3. similar to a cash dividend. 4. 4. similar to the payment of a stock dividend. 14.Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the maximum rate of taxation on dividends

  • Definitions of Stock Dividends and Stock Splits

    Even though both stock split and stock dividend increase the number of shares held by the share holder, stock split would not increase the amount of share capital held by the share holder.

  • Dividends and Stock Spilt Transactions and Stockholder's Equity

    If you owned some shares of Rigby, would you expect the total value of your shares to go up or down as a result of the stock dividends and stock split?

  • Cash dividend, share repurchase, stock dividend, stock split

    In a stock split the firm increases the number of shares outstanding, say 2:1. It sends shareholders more shares. Both stock dividends and stock splits increase the number of shares outstanding, so "the pie is divided into smaller pieces."

  • T/F Questions About Stock and Company Dividend Reinvestment Plans

    A 2 for 1 stock split implies that 2 shares are issued for each share held and so the number of shares will be 200 c. Some dividend reinvestment plans increase the amount of equity capital available to the firm. This is correct.

  • Common Stock

    Total shares before stock split = 40,000 + 6,000 = 46,000 shares After 2 for 1 stock split, the total shares = 46,000 x 2 = 92,000 shares 25 Declared and paid a cash dividend of $ .10 per share to be distributed on Dec. 30 to stockholders on record

  • Stock dividends, stock splits, and reverse splits

    However, after the split, the number of shares outstanding increase, but for the stock price, it will increase or decrease as the effect of increase or decrease in dividend.

  • Stock Dividends, Splits and Reverse Splits

    The various tools which are used to increase the liquidity of a common stock are stock dividends and stock splits. These tools are used to bring down cost of capital and increase the wealth of the shareholders.

View More Related Solutions