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Stock Dividends and Stock Splits

Stock Split and Stock Dividend Valuations

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

Debating between 2 for 1 stock split, or 15% stock dividend

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 ____ ______

Corporations, stock, dividends, equity

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

2-for-1 Stock Split - Warner Inc.

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

Stock Split and Basis

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

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

Stock Dividend and Stock Splits

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

Stock Splits and Stock Dividends for Roll Corporation

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

Shares of common stock will you own after the stock split

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:___________

Computing dividends, expected return and stock price

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

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

Effects of stock dividends, splits and treasury stock

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

Value of an Investment After a Stock Split

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

Computing dividends on preferred and common stock

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

Koala Corp: Stock Dividends and Splits

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?

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