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# Stock Dividends and Stock Splits

### Calculation of Net Income after a stock split

Company X reports \$3,703,920 net income in 2008, with an average of 268,400 shares of common stock outstanding. If, for year end 12/31/09, Company X has a 3 for 1 stock split, how do I calculate the amount of net income that will be reported for 2008, on the 2009 annual report?

### 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

### Nontaxable stock dividends result in

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.

### Journalize transactions for treasury stock

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

### Stock Dividends, Splits & 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 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

### Kimm Inc: Earnings per share, bond interest expense, dividends on common stock

Kimm Inc had net income for 2004 of \$6,360,000 and earnings per share on common stock of \$5. Included in the net income was \$900,000 of bond interest expense related to its long term debt. The income tax rate for 2004 was 30%. Dividends on preferred stock were \$1,200,000. the payout ratio on common stock was 25%. What were

### Understanding Financial Statements

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 a response on your findings. Include the Following: o A description of the Web site examples you found, including the locatio

### Limited Value Stock Dividend and Stock Split to an Investor

Why might a stock dividend or a stock split be of limited value to an investor?

### Stock Split for Tarheel Computing

Tarheel Computing's stock was trading at \$180 per share before its recent 3-for-1 stock split. The 3-for-1 split led to a 5 percent increase in Tarheel's market capitalization. (Market capitalization equals the stock price times the number of shares.) What was Tarheel's price after the stock split?

### Stock split and stock dividend

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

### Stock and dividends

Investor A owns \$1,000 worth of stock that does not pay a dividend. Investor B owns \$1,000 of an equivalent stock that, after paying a dividend, becomes an investment in stock and cash: \$900 in stock and \$100 in dividend income. If the capital gains tax is lower than the tax on dividends, which investor has the better position:

### Stock Dividend vs Stock Split

What is a stock dividend? How does this differ from a stock split?

### Stock Repurchase, Dividend Policy

1) Indicate whether the following statements are true or false. If the statement is false, explain why. a. If a firm repurchases its stock in the open market, the shareholders who tender the stock are subject to capital gains taxes. b. If you own 100 shares in a company's stock and the company's stock splits 2-for-1, you w

### General Cereal Common Stock Dividends

General Cereal common stock dividends have been growing at an annual rate of 7 percent per year over the past 10 years. Current dividends is \$1.70 per share. What is the current value of a share of this stock to an investor who requires 12 percent rate of return if the following conditions exist? A. Dividends are expected to

### A corporation has 50,000 shares of \$28 par value stock outstanding that has a current market value of \$160.

A corporation has 50,000 shares of \$28 par value stock outstanding that has a current market value of \$160. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately ________. \$7 \$112 \$40 \$640 On January 1, 20xx, Sunshine Corporation had 40,000 shares of \$10 par va

### Stock Dividend/Stock Split: Differences

A. Can you offer any differences between stock dividend and stock split? b. If you were a stockholder, what would you prefere to see - your company declare a 100% stock dividend or - a 2-for-1 split?

### Expected Rate of Return Calculation

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:

### Dividends: split shares, stock dividends and rate of increase

For question 3 and 4 I don't have the same answer the book has and I'm not sure where I went wrong, for question 5 I'm just lost. Thanks for your help.

### Stock Dividends.

Helen's Company has \$300, 000 shsares of \$40 par common stock outstanding. On February 13, Helen's company declared a 3% stock dividend to be issued. April 30 to stockholders of record on March 14 the market price of the stock was \$63 per share on Febuary13 What is the Stock Dividends amount for February 13th My answer

### Dividends on preferred stock.

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

### Stock Split and Shares

A stock of which you own 100 shares has just split three for two. Its market price before the split was \$30 per share. Now discuss what you would expect to happen with this stock and your ownership interests.

### 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

### Stock Split..

Fields Corporation has 20,000 shares of \$10 par value common stock outstanding when it announces a 2-for-1 stock split. Before the split, the stock had a market price of \$120 per share. After the split, how many shares of stock will be outstanding? What will be the approximate market price per share?

### Dividend per share calculation

After a 5-for-1 stock split, the Strasburg Company paid a dividend of \$0.75 per new share, which represents a 9% increase over last year's pre-split dividend. What was last year's dividend per share?

### Stock Questions

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

### Andahl Corporation stock, of which you own 500 shares, will pay a \$2-per-share dividend one year from today. Two years from now Andahl will close its doors; stockholders will receive liquidating dividends of \$17.5375 per share. What is the current price of Andahl stock?

Andahl Corporation stock, of which you own 500 shares, will pay a \$2-per-share dividend one year from today. Two years from now Andahl will close its doors; stockholders will receive liquidating dividends of \$17.5375 per share. The required rate of return on Andahl stock is 15 percent. 1. What is the current price of Andahl st

### Stock Dividend , Stock Split, Reverse Stock Split and ROE for Menomonie Publishing

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

### Tax transactions: basis in shares after stock div and stock splits

Tax transactions: basis in shares after stock div and stock splits. See attached file for full problem description.

### Time-Value of Money Concepts

Utilize the WWW to research, select, and monitor investments. Demonstrate the concept of the time-value of money through the use of examples. 1. Compare a regular cash dividend with a periodic share repurchase. Which has greater appeal to you? Explain. 2. Explain a stock dividend and further explain if you would prefer it t

### Modern Investment Theory II

Problem: 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 f. Menomonie Publishing stock currently sells for \$40 per share. The company has 1,200,000 shares outstanding. What wo