1. Nontaxable stock dividends result in: a. A higher cost per share for all shares than before the stock dividend. b. A lower cost per share for all shares than before the stock dividend. c. An increase in the total cost of the old and new stock combined. d. A decrease in the total cost of the old and new stock combined. e.
1. Walton Corporation has the following stockholders' equity accounts on January 1, 2005: Common Stock, $10 par value ..................... $1,500,000 Paid-in Capital in Excess of Par ................ 200,000 Retained Earnings ............................... 500,000
Research Web sites that contain examples of stock dividends, stock splits, and reverse splits. Yahoo Finance at http://finance.yahoo.com is a good starting point for locating these Web sites. Write 1) A description of the Web site examples you found, including the location (URLs) of the Web sites; 2) Definitions of stoc
You have a stock currently priced at $16.38 paying $1.05 in dividends with an expected dividend growth rate of 3.97%. What is your expected rate of return? Formula: Calculation:
The stockholders' equity section of Knott Corporation shows the following on December 31, 2007: Preferred stock?6%, $100 par, 4,000 shares outstanding $ 400,000 Common stock?$10 par, 60,000 shares outstanding 600,000 Paid-in capital in excess of par
The following companies have different financial statistics. What dividend policies would you recommend for them? What changes would occur in the statement of net worth after a two-for-one stock split?
5. The following companies have different financial statistics. What dividend policies would you recommend for them? Explain your reasons. Mathews Co. Aaron Corp. Growth rate in sales and earnings . . . . . . . . . . . . . . 5% 20% Cash as a percentage of total assets . . . . . . . . . . . 15% 2% 18. The Wallace C
Squash Delight, Inc has the following balance sheet: Assets Cash $100,000 Accounts Receivable 300,000 Fixed Assets 600,000 Total Assets $1,000,000 Liabilities Accounts Payable
1) Menomonie Publishing stock currently sells for $40 per share. The company has 1,200,000 shares outstanding. What would be the effect on the number of shares outstanding and on the stock price of the following: 15% Stock Dividend 4-for-3 Stock Split Reverse 3-for-1 Stock Split 2) Last year both Hudson Homes and Bal
Compare a regular cash dividend with a periodic share repurchase. Which has greater appeal to you? Explain. Explain a stock dividend and further explain if you would prefer it to a cash dividend. What are stock splits and how desirable are they?
# 29. Common stock value based on PV calculations. Compute the anticipated value of the dividends for the next three years. Discount each of these dividends back to the present at a discount rate of 12 percent and then sum them.
Cellular Systems paid a $3 dividend last year. The dividend is expected to grow at a constant rate of 5 percent over the next two years. The required rate of return is 12 percent (this will also serve as the discount rate in this problem). Round all values to three places to the right of the decimal point where appropriate.
Stock Dividends and Stock Splits: Stock dividends and stock splits are common forms of corporate stock distribution to stockholders Consider each of the numbered statements. You are to decide whether it: A. Applies to both stock dividends and stock splits. B. Applies to neither. C. Applies to stock splits only. D. Ap
A stock you are interested in paid a dividend of $1 last year. The anticipated growth rate in dividends and earnings is 20% for the next 2 years before settling down to a constant 5% growth rate. The discount rate is 10%. Calculate the expected price of the stock.
1. Why might a stock dividend or a stock split be of limited value to an investor? Does it make sense for a corporation to repurchase its own stock? Explain. 2. Suggest two areas where the use of futures contracts are most common. What percent of the value of the underlying security is typical as a down payment in a futures c
13. (Stock Split and Stock Dividend) The common stock of Alexander Hamilton Inc. is currently selling at $120 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. Nine million shares are issued and outstanding. Inst
The owners' equity accounts for a company are shown here: Common stock ($1 par value) $ 8,000 Capital surplus 156,000 Retained earnings 510,000 ======= Total owners' equity $674,000 a. If the company declares a 4
Prepare Journal entries for each of the following: 1) Corporation sells 1,000,000 shares of $2.00 par value common stock to the public for a net proceeds of $10,000,000 on 10/1/2000. 2) Corporation declares a $.05 per share dividend units common stock on 9/15/2003. Total shares of common stock issued & outstanding on
1) Current Stock Sale Price = $40 per share and there are 1,200,000 shares outstanding. What is the effect on # of shares outstanding and stock price if: a) 15% Dividend b) 4-for-3 Stock Split c) Reverse 3-for-1 Stock Split 2) If 2 companies have the same Net Income ($1,000,000) and the same Assets ($10,000,000), Explain w
Please provide insight to the following questions: 1) What are some differences between the date of declaration and date of record for dividends? 2) As an investor, would you prefer a cash or stock dividend? Why? 3) How would the price of a stock be affected by its dividend? 4) Why do compani
1. Calculate the total dividends and the per-share dividends declared on each class of stock for each of the six years. 2. Calculate the average annual dividend per share for each class of stock for the six-year period. 3. Calculate the percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock.
Scenario Magnifico Inc. owns and operates movie theaters throughout Georgia and Mississippi. Magnifico has declared the following annual dividends over a six-year period: 2000, $32,000; 2001, $65,000; 2002, $84,000; 2003, $60,000; 2004, $72,000; and 2005, $95,000. During the entire period, the outstanding stock of the compan
Have you ever experienced a stock split? Did it change your ownership position with the company? Did it enhance the stock price? Why would a company do a stock split? A reverse stock split?
Bermuda Triangle Corporation (BTC) currently has 400,000 shares of stock outstanding that sell for $90.00 per share. Assuming no market imperfections or tax effects exit, what will the share price be after: A. BTC has a five-for-three stock split? B. BTC has a 15 percent stock dividend? C. BTC has 42.5 percent stock divi