Roll Corporation (RC) currently has 159,000 shares of stock outstanding that sell for $56 per share. Assume no market imperfections or tax effects exist. Question: Determine the share price and new number of shares outstanding if. Round your price per share to 2 decimal places. (e.g., 32.16) and other values to the nearest
A firm is debating between an 2 for 1 stock split, or a 15% stock (non cash) dividend. The current price of the stock is $100.00. Assume the stockholder currently owns 100 shares. 2 for 1 stock split 15% stock (non cash) dividend # shares ____ ______ Stock Price ____ ______
1. Characteristics of a corporation include Shareholders who are mutual agents Direct management by the shareholders (owners) Its inability to own property Shareholders who have limited liability 2. Under the corporate form of business organization Ownership rights are easily transferred. A stockholder is
Can you please assist me with the following: Stock Split and Stock Dividend The common stock of Warner Inc. is currently selling at $110 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $70 per share. Five million shares a
David brought 100 shares of common stock for $30,000. Later the corporation distributed a share of preferred stock for every two shares of common. At the date of distribution, the common stock had a FMV of $400 per share and the preferred stock had a FMV of $300 per share. What is David's basis in the common stock and the prefer
Review questions about dividends, stock splitting, Common stock account, year-end closing entries, equity, outstanding stock, loss, stock dividends.
1. Occidental Produce Company has 40,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $0.01 par value; the preferred stock is 4% non-cumulative, with $100 par value. On October 15, 2014, the company declares a total dividend payment of $40,000. What is the total amount o
Summerborn Manufacturing, Co., completed the following transactions during 2012 Jan 16 Declared a cash dividend on the 5%, $100 par preferred stock (900 shares outstanding). Declared a $0.30 per share dividend on the 80,000 shares of common stock outstanding. The date of record is January 31, and the payment due date is Febru
On January 1, 2008, Fredriksen Inc.'s Stockholders' Equity category appeared as follows prefered stock, $80 par value, 7% 3,000 shares issued and outstanding $ 240,000 Common Stock, $10 par value 15,000 shares issued and outstanding 150,000 addition
The board of Wicker Home Health Home Health Care, Inc, is exploring ways to expand the number of shares outstanding in an effort to reduce the market price per share to a level that the firm considers more appealing to investors. The options under consideration are a 20% stock dividend and, alternatively, a 5-for-4 stock split
On Oct 31 the stockholder's equity section of Gregg Company's balance sheet consists of common stock $1,074,000 and retained earnings $405,700. Gregg is considering the following two courses action: (1) declaring a 5% stock dividend on the 89,500 $12 par value shares outstanding of (2) effecting a 2-for-1 stock split th
Please help answer the following finance-related questions. Please provide a brief answer for each. What is the difference between a stock dividend and a stock split? As a stockholder, would you prefer to see your company declare a 100% stock dividend or a 2-for-1 split? Assume that either action is feasible.
1) Peterson company has a capital budget of $1.2 million. The company wants to maintain a target capital structure which is 60% debt and 40% equity. The company forecasts that its net income this year will be $600,000. If the company follows a residual distribution model and pays all distributions as dividends, what will be it's
Looking for assistance with the attached Excel spreadsheet utilizing Excel formulas to solve. #1 Midnight Hour Inc gas declared a $5.10 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15%. New IRS regulations require that taxes be withheld at the time the dividend is paid. Midnight Hour s
Stock Dividends and Splits 1) Albatross Inc. has 10,000 shares of common stock outstanding. This year, the company's board of directors declared and paid a $2 per share dividends on common stock. What is the journal entry to record the payment of these dividends? (Choose the correct account title using Dividends
PharmGen, a pharmaeutical company, was founded two years ago. Like most pharmaceutical companies. PharmaGen did not make any profits inits first two years of operations since the company spent heavily on research & development to create new drugs. However, in order to continue to attract investors, the company would like to issu
A company has just announced a 3-for-1 stock split, effective immediately. Prior to the split, the company had a market value of $5 billion with 100 million shares outstanding. Assuming that the split conveys no new information about the company, what is the value of the company, the number of shares outstanding, and price per share after the split? If the actual market price immediately following the split is $17.00/share, what does this tell us about market efficiency?
A company has just announced a 3-for-1 stock split, effective immediately. Prior to the split, the company had a market value of $5 billion with 100 million shares outstanding. Assuming that the split conveys no new information about the company, what is the value of the company, the number of shares outstanding, and price per s
Becker Financial recently completed a 7-for-2 stock split. Prior to the split, it stock sold for $90 per share. If the total market value was unchanged by the split, what was the price of the stock following the split? a) $23.21 b) $24.43 c) $25.71 d) $27.00 e) $28.35
Stock splits and stock dividends. Roll Corporation (RC) currently has 260,000 shares of stock outstanding that sell for $78 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. RC has five-for-three stock split? b. RC has a 15% stock dividend? c. RC has a 42.5 percent
Assume that you own 500 shares of $10 par value common stock of a company and the company has a 2-for-1 stock split when the market price per share is $40. Required: (a) How many shares of common stock will you own after the stock split? Shares of common stock:___________
A company will pay $2 dividends next year. These dividends are expected to grow at a rate of 15% for four years. Afterward, the long term growth rate is expected to settle at 4%. The published beta for the stock is 1.2, the expected rate of return on the market is 13% and the current risk free rate is 3%. 1) Calculate the com
Balance Sheet A firm's balance sheet has the following entries: Cash $30,000,000 Total Assets: 100,000,000 Common Stock ($10,000,000 shares outstanding $2 par) 20,000,000 Additional paid-in capital 5,000,000 Retained earnings 35,000,000 What will be each of these balance sheet entries after a a) $2 a share ca
Identify the effects of the following transactions on total stockholders' equity. Each transaction is independent. A. A 10% stock dividend. Before the dividend, 500,000 shares of $1 par common stock were outstanding; market value was $6 at the time of the dividend. B. A 2-for-1 stock split. Prior to the split, 60,000 share
Company ABC currently has 100,000 shares of common stock outstanding and a price-earnings ratio of seven. Net income for the recently ended year is $375,000. Company ABC board of directors declared a 15-for-2 stock split. Company XYZ owned 100 shares of Company ABC before the split. What is the approximate value of Company X
Great Lakes Manufacturing, Inc. reported the following: Stockholders' Equity Preferred stock, cumulative, $1 par value, 5%, 60,000 shares issued......... $ 60,000 Common stock, $0.10 par value, 9,130,000 shares issued........................ 913,000 Great Lakes Manufacturing has paid all preferred dividends through 20
E 8.18 Stock splits versus stock dividends Assume the you own 600 shares of common stock of a company, that you have been receiving cash dividends of $6 per share per year, and that the company has a 4-for-3 stock split. Required: a. How many shares of common stock will you own after the stock split? b. What new cash d
22. The owners' equity accounts for Speed Boats are shown here: common stock ($1 par share) $55,000 capital surplus 35,000 retained earings 131,000 total owers equity 221,000 How many shares
Koala Corp began 2008 with a $280,000 credit balance in retained earnings. The company had $490,000 in revenues and $310,000 in expenses during the year. The company also paid dividends of $25,000 to its shareholders. What would the balance in Koala's earnings account at the end of 2008?
Question E 8.16. Calculate stock dividend shares and cash dividend amounts, Assume that you own 600 shares of Kay Inc, common stock and that you currently receive cash dividend of 0.42 per share per year. a) If Kay Inc declared a 5% stock dividend, how many shares of common stock would you receive as a dividend? b) Calcul
Need help to solve problems. 1. Twenty-five-year B-rated bonds of Visual Care Company were initially issued at a 12 percent yield. After 10 years the bonds have been upgraded to Aa2. Such bonds are currently yielding 10 percent to maturity. Use the Table below to determine the price of the bonds with 15 years remaining to ma
28. Angie's just declared a 5% (small) stock dividend. Prior to the dividend, the stock had a $1 par value per share, a $15 market value per share. As a result of this dividend, the: a. common stock account will remain constant b. common stock account will decrease in value c. retained earnings account will increase in valu