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Stock Dividends and Stock Splits

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

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?

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

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

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


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

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