Homework Answers
| 5- | answer is true | because as per Walter's dividend model A firm should retain the earnings if rate of return is greater than cost of equity such kind of firms are called growth firms and if rate of return is less than cost of equity firm should declare dividend and such firms are called declining firm |
| 9- | answer is false | because a 40% stock dividend records more decrease in retained earning rather than 10% stock dividend. |
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Question 5 (1 point) Saved "Growth" companies often payout a low percentage of their annual earnings...
Question 5 (1 point) Saved "Growth" companies often payout a low percentage of their annual earnings...
Question 5 (1 point) Saved "Growth" companies often payout a low percentage of their annual earnings in the form of dividends because, these companies tend to reinvest earnings generated by their operations into the their business to help finance their growth. Whereas "mature" companies that lack significant growth opportunities often distribute a high percentage of their net income as dividends. True False Part B Question 6 (1 point) On March 13th, The Company declares a $3.00 cash dividend. The Company...
Cash dividends involve three events. On the date of declaration, the directors bind the company to pay the dividen...
Cash dividends involve three events. On the date of declaration, the directors bind the company to pay the dividend. A dividend declaration reduces retained earnings and creates a current liability. On the date of record, recipients of the dividend are identified. On the date of payment, cash is paid to stockholders and the current liability is removed. Neither a stock dividend nor a stock split alters company value. However, the value of each share is less due to the distribution...
Low Corporation has 50,000 shares of $30 par value common stock outstanding and retained earnings of...
Low Corporation has 50,000 shares of $30 par value common stock outstanding and retained earnings of $1,125,000. The company declares a 100 percent stock dividend. The market price at the declaration date is $30 per share. a. Prepare the journal entries for (1) the declaration of the dividend and (2) the issuance of the dividend. General Journal Ref. Description Debit Credit (1) AnswerCashCash dividendsCommon stockDividends payableStock dividend distributableStock dividends Answer Answer AnswerCashCash dividendsCommon stockDividends payableStock dividend distributableStock dividends Answer Answer...
can someone please help me with this question Cash and stock dividends lester corporation has 30,000 shares of $1 par va...
can someone please help me with this question Cash and stock dividends lester corporation has 30,000 shares of $1 par value common stock outstanding. The company has 250,000 of retained earnings. at year end the company declares cash dividends of $3.00 per share and a 5 percent stock dividend. the market price of the stock at the declaration date is $40 per shatre. three weeks later the company pays the dividends a) prepare the journal entry for the declaration of...
1. Restrictions of retained earnings may result from each of the following except a. contractual restrictions....
1. Restrictions of retained earnings may result from each of the following except a. contractual restrictions. b. legal restrictions. c. prior period adjustment restrictions. d. voluntary restrictions. 2. Manner, Inc. has 15,000 shares of 6%, $100 par value, noncumulative preferred stock and 30,000 shares of $1 par value common stock outstanding at December 31, 2011. There were no dividends declared in 2010. The board of directors declares and pays a $150,000 dividend in 2011. What is the amount of dividends...
Question: Please help! The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts...
Question:
Please help!
The balance sheet of Consolidated Paper, Inc., included the
following shareholders' equity accounts at December 31, 2020:
Paid-in capital: Preferred stock,
8.8%, 90,000 shares at $1 par$90,000 Common stock, 364,000 shares
at $1 par 364,000 Paid-in capital—excess of par, preferred
1,437,000 Paid-in capital—excess of par, common 2,574,000 Retained
earnings 9,735,000 Treasury stock, at cost; 4,000 common shares
(44,000)Total shareholders' equity$14,156,000
During 2021, several events and transactions affected the
retained earnings of Consolidated Paper.
Required:
1. Prepare the appropriate...
question 5 MLS had retained earnings of $150,000. The company issued 40,000 shares of poration had...
question 5
MLS had retained earnings of $150,000. The company issued 40,000 shares of poration had $1.000,000 of common stock outstanding Cmmon stock at par on July I and earned net income of $400,000 for the ycar. Jurnalize the declaration of a 15% stock dividend on December 10, 2020, for the following independent at was issucd at l. arid- and Journalize stock dive Anstructions asumptions. a Par value is $10, and market price is $18. A Par value is $5,...
1-7 Question 1 1.25 pts Which of the following is not a characteristic of a corporation?...
1-7
Question 1 1.25 pts Which of the following is not a characteristic of a corporation? Limited liability Access to limited amounts of capital Owners are considered stockholders Double taxation Question 2 1.25 pts If 50,000 shares are authorized, 37,000 shares are issued, and 2,000 shares are reacquired, the number of outstanding shares is 37,000. True False Question 3 1.25 pts One of the conditions for paying a cash dividend is formal action by the board of directors. True False...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 50,000 shares authorized, 33,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 825,000 66,000 350,000 $1,241,000 Total stockholders' equity During the year, the following transactions affected its stockholders' equity accounts. 2 Purchased 3,300 shares of its own stock at $25...
Question 5 (1 point) Saved "Growth" companies often payout a low percentage of their annual earnings in the form of dividends because, these companies tend to reinvest earnings generated by their operations into the their business to help finance their growth. Whereas "mature" companies that lack significant growth opportunities often distribute a high percentage of their net income as dividends. True False Part B Question 6 (1 point) On March 13th, The Company declares a $3.00 cash dividend. The Company...
Cash dividends involve three events. On the date of declaration, the directors bind the company to pay the dividend. A dividend declaration reduces retained earnings and creates a current liability. On the date of record, recipients of the dividend are identified. On the date of payment, cash is paid to stockholders and the current liability is removed. Neither a stock dividend nor a stock split alters company value. However, the value of each share is less due to the distribution...
Question:
Please help!
The balance sheet of Consolidated Paper, Inc., included the
following shareholders' equity accounts at December 31, 2020:
Paid-in capital: Preferred stock,
8.8%, 90,000 shares at $1 par$90,000 Common stock, 364,000 shares
at $1 par 364,000 Paid-in capital—excess of par, preferred
1,437,000 Paid-in capital—excess of par, common 2,574,000 Retained
earnings 9,735,000 Treasury stock, at cost; 4,000 common shares
(44,000)Total shareholders' equity$14,156,000
During 2021, several events and transactions affected the
retained earnings of Consolidated Paper.
Required:
1. Prepare the appropriate...
question 5
MLS had retained earnings of $150,000. The company issued 40,000 shares of poration had $1.000,000 of common stock outstanding Cmmon stock at par on July I and earned net income of $400,000 for the ycar. Jurnalize the declaration of a 15% stock dividend on December 10, 2020, for the following independent at was issucd at l. arid- and Journalize stock dive Anstructions asumptions. a Par value is $10, and market price is $18. A Par value is $5,...
1-7
Question 1 1.25 pts Which of the following is not a characteristic of a corporation? Limited liability Access to limited amounts of capital Owners are considered stockholders Double taxation Question 2 1.25 pts If 50,000 shares are authorized, 37,000 shares are issued, and 2,000 shares are reacquired, the number of outstanding shares is 37,000. True False Question 3 1.25 pts One of the conditions for paying a cash dividend is formal action by the board of directors. True False...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 50,000 shares authorized, 33,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 825,000 66,000 350,000 $1,241,000 Total stockholders' equity During the year, the following transactions affected its stockholders' equity accounts. 2 Purchased 3,300 shares of its own stock at $25...
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