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Stock Dividends and Stock Splits

Examining Journalizing Stockholders' Equity Transactions

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

Stockholders' Equity and Transaction's Effect

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

Corporate Finance

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

Stock Equity, After Stock Dividend & After 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

What is the difference between a stock dividend and a stock split?

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.

Dividend Payout Ratio, Value of Operations, Stock Split & External Equity

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

Dividends and Taxes, Stock Split and Stock Dividend

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 - Albatross Inc. and Husky Corp.

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

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

Dividends/stock split: Balance Sheet

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

Cash and stock dividends for Kay Inc; earned revenue for Kirkland Theater

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

Stock splits, yields to maturity, dividends and retained earnings

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

Stock dividend and stock split

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

Bennett Company paid cash dividends totaling $150,000 in 2009 and $75,000 in 2010.

19. Bennett Company paid cash dividends totaling $150,000 in 2009 and $75,000 in 2010. In 2011, Bennett intends to pay cash dividends of $800,000. Compute the amount of cash dividends per share to be received by common stockholders in 2011 under each of the following assumptions. Treat each case independently. There were no div

Stock Split & EPS, DPS Calculation

Suppose you own 2,000 common shares of Laurence Incorporated. The EPS is $10.00, the DPS is $2.25, and the stock sells for $80 per share. Laurence announces a 2-for-1 split. Immediately after the split, how many shares will you have, what will the adjusted EPS and DPS be, and what would you expect the stock price to be? Round th

Stocks dividend and Stock split

The directors of Amman corporation are considering the issuance of a stock dividend. They have ased you to discuss the proposed action by answering the following questions. Instructions: a.) What is a stock dividend? How is a stock dividend distinguished from a stock split 1. From a legal standpoint 2.

Anum Inc. $10 par common stock is selling for $120 per share.

1. Anum Inc. $10 par common stock is selling for $120 per share. 5 million shares are currently issued and outstanding. The board of directors wishes to stimulate interest in Anum Inc. Common stock before a forthcoming stock issue but does not wish to distribute capital at this time. The board also believes that too many adjustm

If a firm executed a 3-for-1 stock split, the value of each new stock should be?

10. If a firm executed a 3-for-1 stock split, you would expect that the value of a. an investment in the firm should increase because having 3 stocks is clearly better than 1. b. each new stock should be approximately 3 times the value of the original stock c. each new stock should be approximately equal to the value o

Dividends and Stock Split Transactions and Stockholder's Equity

The stockholder's equity section of Rigby Moving and Storage Company's balance sheet as of December 31, 20x7 is shown below. Contributed Capital Common Stock, $2 par value, 3,000,000 shares authorized 500,00 shares issued and outstanding $1,000,000 Additional Paid-In capital

Pittman Corporation Dividends, Stock Splits, Stockholder's Equity

See attached worksheets for completion of problems. The stockholder's equity section of the balance sheet of Pittman Corporation as of December 31, 20x7, was as follows: Contributed Capital Common stock, $4 par value, 500,000 shares authorized, 200,000 shares issued and outstanding $800,000 Addit

What were the dividends on common stock in 2007?

Kimm, Inc. had net income for 2007 of $2,120,000 and earnings per share on common stock of $5. Included in the net income was $300,000 of bond interest expense related to its long-term debt. The income tax rate for 2007 was 30%. Dividends on preferred stock were $400,000. The payout ratio on common stock was 25%. What were the d

E11-10 Stock Dividends Versus Stock Split for Campbell Company

Campbell Company wants to increase the number of shares of its common stock outstanding and is considering a stock dividend versus a stock split. The stockhlders' equity section of the firm's most recent balance sheet appeared as follows: Common Stock $10 par, 60,000 shares issued and outstanding $ 500,000 Additional

Multiple choice and essay questions

Question 1 The Discount on Common Stock account reflects: a.The difference between the par value of stock and its issue price when it is issued at a price below par value. b.One share's portion of the issued corporation's net assets recorded in its accounts. c.The difference between the par value of

Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or maintains the current

Stock Valuation Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or maintains the current dividend once a year and then pays this dividend out in equal quarterly installments to its shareholders. (Round yo