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# Stock Dividends and Stock Splits

### stock exchanges, stock split, dividend policy

What are three U.S. stock exchanges where equities are publicly traded? Why may a stock split not be of great value to existing shareholders? How can a dividend policy be amended to address shareholders' expectations of increasing returns. and What are some of the sources companies can turn to for venture capital fundin

### Shares After a Stock Split

Fred Jones owns 56 shares of the Robust Corporation's stock. Incredible announces a 3 for 2 stock split. How many shares will Fred have after this split? 178 shares. 112 shares. 84 shares. 56 shares.

### Regular cash dividend vs. periodic share repurchase.

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?

### Stock Dividend, Stock Split, Reverse Stock Split

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: 1. 15% Stock Dividend 2. 4-for-3 Stock Split 3. Reverse 3-for-1 Stock Split Last year both Hudson Homes and

### Finance Concepts

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.

### Text Problems

10. Stock Values. Integrated Potato Chips paid a \$1 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 4 percent per year. 1. What is the expected dividend in each of the next 3 years? 2. If the discount rate for the stock is 12 percent, at what price will the stock sell? 3. What is the expe

### Stock Dividends and Stock Splits

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

### Shares of stock outstanding that sell for \$85 per share

The corporation currently has 500,000 shares of stock outstanding that sell for \$85 per share. There are no market imperfections. Whats the share price after the corporation has a five for three stock split? What about a 15% and 42.5 % stock dividend? A four for seven reverse stock split?

### Guidance

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.

### Stock split

Question 4. Capra's stock trades at \$60 a share. The company is contemplating a 4-for-1 stock split. Currently, the company has EPS of \$4.00, DPS of \$1.00, and 10 million shares of stock outstanding. Assuming that the stock split will have no effect on the total market value of its equity, what will be the company's stock p

### Stock Split

Why may a stock split not be of great value to existing shareholders?

### Stock Dividends and Stock Splits

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. A

### Hinckley Company - Stock dividend, Stock Split

On October 31, the stockholders' equity section of Hinckley Company consists of common stock \$800,000 and retained earnings \$400,000. Hinckley is considering the following two courses of action: (1) Declare a 10% stock dividend on the 80,000, \$10 par value shares out standing, or (2) effect a 2-for-1 stock split that will reduce

### Stock dividend and stock split, futures, options

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

### Accounting for stock split and stock dividend

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

### Stock splits

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

### Menomonie Publishing effect on number of shares: split, reverse split, stock dividend

Menomonie Publishing stock currently sells for \$40 per share. The company has 1,200,00 shares outstanding. What would be the effect on the number of shares outstanding and on the stock price of the following: 1. 15% Stock Dividend 2. 4-for-3 Stock Split 3. Reverse 3-for-1 Stock Split Last year both Hudson Homes and

### Journal enteries

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

### Dividends and Stock Splits, ROE

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

### Dividends and Returns

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 Last year both Hudson Homes and Baldwi

### Menomonie Publishing Calculating stock dividend, stock split and reverse stock split

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 Last year both Hudson Homes and Baldwi

### Dividend dates, stock dividend, cash dividend, stock splits, benefits of stock split

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

### Cash dividend, share repurchase, stock dividends, stock splits

What is the comparison of a regular cash dividend with a periodic share repurchase. Which has greater appeal? Explain to me a stock dividend and further explain if you would prefer it to a cash dividend. What are stock splits and how desirable are they?

### 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

### Stock Split , Reverse Stock Split

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?

### Stock Dividends and Equity Accounts

The company with the following common equity accounts has declared an 8 percent stock dividend at a time when the market value of its stock is \$10.00 per share. What effects on the equity accounts will the distribution of the stock dividend have? Common stock (\$1.00 par value): \$450,000 Capital surplus: \$1,550,000 Retaine

### Stock splits, stock dividends, 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

### Calculating share price after stock splits,stock dividends and reverse stock split assuming no market imperfections or tax effects

Bermuda Triangle Corp. (BTC) currently has 300,000 shares of stock outstanding that sell for \$80 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. BTC has a 5-for-3 stock split? b. BTC has a 15% stock dividend? c. BTC has a 42.5% stock dividend? d. BTC has a 4-for