Purchase Solution

The common stock of Alexander Hamilton Inc. is currently sel

Not what you're looking for?

Ask Custom Question

(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.

Instructions

Prepare the necessary journal entries assuming the following.

1. The board votes a 2-for-1 stock split.

2. The board votes a 100% stock dividend.

3. Briefly discuss the accounting and securities market differences between these two methods of increasing the number of shares outstanding.

Purchase this Solution
Solution Summary

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.

Instructions

Prepare the necessary journal entries assuming the following.

1. The board votes a 2-for-1 stock split.

2. The board votes a 100% stock dividend.

3. Briefly discuss the accounting and securities market differences between these two methods of increasing the number of shares outstanding.

Solution Preview

(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.

Instructions

Prepare the ...

Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

View More Free Quizzes
Related BrainMass Solutions

  • Accounting for stock split and stock dividend

    64994 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.

  • Jefferson & Hamilton: Policymaking

    The solution is a guide that helps students understand the key points in the debate between Alexander Hamilton and Thomas Jefferson on policymaking.

  • Airborne Airlines, Inc. and Hamilton Corp.

    The bond carries an annual interest payment of $78 and is currently selling for $875. Airborne is in the 30 percent tax bracket. The firm wishes to know what the aftertax cost of a new bond issue is likely to be.

  • Calculations Based on Account Balances

    Jefferson, Inc., purchases Hamilton Corporation on January 1, 2004. Immediately after the acquisition, the two companies have the following account balances. Hamilton's equipment (with a five year life) is actually worth $450,000.

  • Multiple Choice Questions

    Jefferson, Inc., purchases Hamilton Corporation on January 1, 2004. Immediately after the acquisition, the two companies have the following account balances. Hamilton's equipment (with a five year life) is actually worth $450,000.

  • Alexander Hamilton's Economic Reports

    12037 This is an outline and comprehensive summary of Alexander Hamilton's economic programs. Provide an explanation of Alexander Hamilton's economic programs during the Early Republic.

  • James Madison, Alexander Hamilton and the Federalist papers

    For your essay question, you are being asked (at least this is how it is presented in your posting) to analyze comments made by James Madison and Alexander Hamilton in the Federalist Papers.

  • Creation of national debt and the role of government

    Unlike Jefferson, Hamilton doubted the capacity of common people to govern themselves.

  • Weighted average cost of capital for Hamilton Corp

    24673 Weighted average cost of capital for Hamilton Corp 11/17. Given the following information, calculate the weighted average cost of capital for Hamilton Corp.

View More Related Solutions