Explore BrainMass
Share

# Stock Dividends and Stock Splits

### E8.18 Stock splits & dividends; P8.20 Horizontal model for effect of stock issuance

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

### Outstanding shares after a one-for-six reverse stock split

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: 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 and dividends affect the weighted average shares

Explain how both a stock split and a stock dividend affect the computation of the weighted average number of shares outstanding.

### 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

### E15-14 Entries for Stock Dividends and Stock Splits for Chesterton Company

E15-14 (Entries for Stock Dividends and Stock Splits) The stockholders' equity accounts of G.K. Chesterton Company have the following balances on December 31, 2007. Common stock, \$10 par, 300,000 shares issued and outstanding \$3,000,000 Paid-in capital in excess of par 1,200,000 Retained earnings 5,600,000 Shares of G.K. Ch

### Purpose and Benefits of a Stock Split

What is the purpose of a stock split? What are some benefits of a stock split for a company? What are some benefits for an investor? What is the effect to the market value of the stock?

### What is a stock dividend? How is a stock dividend distinguished from a stock split? For what reason does a corporation usually declare a stock dividend? A stock split?

#1 a. Explain how dividends or dividend requirements on any class of preferred stock that may be outstanding affect the computation of EPS. b.One of the technical procedures applicable in EPS computations is the "treasury stock method." Briefly describe the circumstances under which it might be appropriate to apply the t

### How is a stock split different from a stock dividend?

What is a stock split? How is a stock split different from a stock dividend? Chiappetta, Larson, Wild, Fundamental Accounting Principles, 18th Ed., McGraw-Hill 2007, Original work published 1976).

### Stock dividends, stock splits, and reverse splits

? Research Web sites that contain examples of stock dividends, stock splits, and reverse splits. Yahoo! Finance at http://finance.yahoo.com is a helpful starting point for locating these Web sites. ? Write a paper based on your findings. Include the following in your paper: o A description of the Web site examples you foun

### Analyze stock split for Keys; cash flow for Feel Good; receivable balance for Murtaugh

Keys Financial has done extremely well in recent years, and its stock now sells for \$175 per share. Management wants to get the price down to a more typical level, which it thinks is \$25 per share. What stock split would be required to get to this price, assuming the transaction has no effect on the total market value? Put an

### 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

### Accounting II: stock dividend, stock split, cumulative preferred, retained earnings

1. The declaration and issuance of a stock dividend larger than 25% of the shares previously outstanding a. increases common stock outstanding and increases total stockholders' equity. b. decreases retained earnings but does not change total stockholders' equity. c. may increase or decrease paid-in capital

### Dividends and Share Repurchases: Howard Contracting

Howard Contracting recently completed a 3-for-1 stock split. Prior to the split, its stock price was \$150 per share. the firm's total market value was unchanged by the split. What was the price of the company's stock following the stock split? a)\$50 b) \$60 c) \$90 d) \$120

### The Effect of Stock Splits and Dividends on Stock Prices

A corporation currently has 250,000 shares of stock outstanding that sell for \$75 per share. Assuming no market imperfections or tax effects exist, what will the price per share be after: They have a five for three stock split? They have a 15% stock dividend? They have a 42.5% stock dividend? They have a four for sev

### Impact of stock split on its value

A corporation has 17,000 shares \$50 par value common stock. The Board of directors declares a 4-for-1 stock split when the market value of the stock is \$187. a. What will be the number of shares outstanding after the stock split? b. What will be the par value of the shares after the stock split? c. What should be the approx

### Accounting

As an investor, would you prefer a stock dividend, cash dividend or stock split? Why? How do each of these impact a company's financial statement? What are some benefits of a stock split for a company? What are some benefits for an investor? Why would a company choose one over the other? Should an organization issue c

### 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

### Finance: Wal-Mart & Target, stock, beta, dividend, splits, yield, PE, market price, yield

1. What is the market price for Wal-Mart common stock? 2. What is the Beta for Wal-Mart? 3. If the market yield on S&P 500 stocks is 10.0% and 90 day U.S Treasury yield is 0.5%, what is Wal-Mart's required return? 4. What is the dividend that was just paid? Has the stock had any splits? If so, when? 5. What is the dividend

### What will be the company's stock price following the stock split and how many shares of stock will be outstanding?

I'm at work attempting find the answer to my work budget problem. Can you please help me? Dan 4's stock trades at \$ 60 a share. The company is contemplating a 3 for 2 stock split. Currently, the company has EPS of \$3.00, DPS of \$0.50, and 10 million shares of stock outstanding. Can you please show step-by-step (Equation)

### 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