Homework Answers
The correct option is :
d) The par value of the stock will increase.
a) is not applicable because market price shall increase
b)is not applicable because shares outstanding shall decrease
c) is not applicable because market value may increase or decrease as a result of perception by investors
e) is not applicable because balance shall remain same
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Which one of the following is correct concerning the effects of a reverse stock split? Select...
M8-23. Assessing the Financial Statement Effects of a Stock Split The following is taken from a...
M8-23. Assessing the Financial Statement Effects of a Stock Split The following is taken from a Monster Beverage press release dated October 14, 2016. Monster Beverage Corporation today announced that its Board of Directors has approved a 3-for-1 split of its common stock which will be effected in the form of a 200% stock dividend. The additional shares will be distributed on November 9, 2016 to stockholders of record at the close of business (Eastern Time) on October 26, 2016....
Stock split Firm Growth Industries' current stockholders' equity account is as follows: Preferred stock Common stock...
Stock split Firm Growth Industries' current stockholders' equity account is as follows: Preferred stock Common stock (200,000 shares at $4 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity. $ 400,000 800,000 200,000 800,000 $2,200.000 a. Indicate the change in par value and the number of shares outstanding if the firm declares a 2-for-1 stock split b. Indicate the change, in par value and the number of shares outstanding if the firm declares a 1-for-1% reverse stock...
Your firm is planning a 2 for 1 stock split. The market price for the stock...
Your firm is planning a 2 for 1 stock split. The market price for the stock has been $84. The table below presents the equity portion of your firm's balance sheet before the split. Common stock Par value (1 million shares outstanding; $4 par value) $ 4,000,000 Paid-in capital 16,000,000 Retained earnings 30,000,000 Total equity $50,000,000 a.) After the stock split, the number of shares outstanding, their par value and the total common stock account will stand at? b.) Immediately...
A stock has a normal trading range of $22 to $30. The stock is currently selling...
A stock has a normal trading range of $22 to $30. The stock is currently selling at $141 a share. It would be common for a firm in this situation to: Select one: O a. Issue a one-time special dividend. O b. Repurchase outstanding shares by issuing debt securities. O c. Increase the number of outstanding shares via a stock split. d. Do a reverse stock split to lower the market price of the stock. e. Issue a liquidating dividend...
Indicate the principal effects of a stock dividend versus a stock split on the issuing corporation....
Indicate the principal effects of a stock dividend versus a stock split on the issuing corporation. Respond in the spaces as follows: "C" for change; "NC" for no change. Stock Dividend_ Stock Split Number of Shares Outstanding Par Value per Share Total Par Outstanding Retained Earnings Total Stockholders' Equity Composition of Stockholders' Equity
Which of the following statement is correct regarding dividends? A) A stock split always increases the...
Which of the following statement is correct regarding dividends? A) A stock split always increases the firm’s number of shares outstanding. B) All else equal, the market value of a stock will tend to decrease by roughly the aftertax value of the dividend on the record date. C) By paying the same dollar amount of dividend per share each quarter, the firm will always have the same dividend yield each quarter. D) For a 3:2 stock split, the stock dividend...
Exercise 11-16A (Algo) Determining the effects of stock splits on the accounting records LO 11-7 The...
Exercise 11-16A (Algo) Determining the effects of stock splits on the accounting records LO 11-7 The market value of Yeates Corporation's common stock had become excessively high. The stock was currently selling for $420 per share. To reduce the market price of the common stock, Yeates declared a 5-for-1 stock split for the 380,000 outstanding shares of its $12 par value common stock Required b. Determine the number of common shares outstanding and the par value after the split. (Round...
Which one of the following represents the economic effects of issuing a 2-for-1 stock split? No...
Which one of the following represents the economic effects of issuing a 2-for-1 stock split? No effect on par value per share or retained earnings Decrease par value per share, and no effect on retained earnings No effect on par value per share, and decrease retained earnings Increase par value per share and retained earnings Question 19 2 pts If a corporation uses retention of earnings to finance the purchase of property instead of issuing equity securities, then the debt/equity...
1. Microsoft announced a 2 for 1 stock split. Before the split they had 5.4b shares...
1. Microsoft announced a 2 for 1 stock split. Before the split they had 5.4b shares outstanding and par value was $0.0000125. Before the split the balance in the common stock account was:? After the split shares outstanding are (in billions)? After the split par value is? After the split the balance in the common stock is ? 2. Apple Inc. sells 2m shares of common stock with a par value of $0.0001 for $70. The journal entry to record...
Stock split Firm Growth Industries' current stockholders' equity account is as follows: Preferred stock Common stock...
Stock split Firm Growth Industries' current stockholders' equity account is as follows: Preferred stock Common stock (400,000 shares at $4 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $ 400,000 1,600,000 200.000 800.000 $3,000,000 a. Indicate the change in par value and the number of shares outstanding if the firm declares a 2-for-1 stock split. a. The number of shares outstanding after a 2-for-1 stock split is shares (Round to the nearest whole number.)
Stock split Firm Growth Industries' current stockholders' equity account is as follows: Preferred stock Common stock (200,000 shares at $4 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity. $ 400,000 800,000 200,000 800,000 $2,200.000 a. Indicate the change in par value and the number of shares outstanding if the firm declares a 2-for-1 stock split b. Indicate the change, in par value and the number of shares outstanding if the firm declares a 1-for-1% reverse stock...
A stock has a normal trading range of $22 to $30. The stock is currently selling at $141 a share. It would be common for a firm in this situation to: Select one: O a. Issue a one-time special dividend. O b. Repurchase outstanding shares by issuing debt securities. O c. Increase the number of outstanding shares via a stock split. d. Do a reverse stock split to lower the market price of the stock. e. Issue a liquidating dividend...
Indicate the principal effects of a stock dividend versus a stock split on the issuing corporation. Respond in the spaces as follows: "C" for change; "NC" for no change. Stock Dividend_ Stock Split Number of Shares Outstanding Par Value per Share Total Par Outstanding Retained Earnings Total Stockholders' Equity Composition of Stockholders' Equity
Exercise 11-16A (Algo) Determining the effects of stock splits on the accounting records LO 11-7 The market value of Yeates Corporation's common stock had become excessively high. The stock was currently selling for $420 per share. To reduce the market price of the common stock, Yeates declared a 5-for-1 stock split for the 380,000 outstanding shares of its $12 par value common stock Required b. Determine the number of common shares outstanding and the par value after the split. (Round...
Which one of the following represents the economic effects of issuing a 2-for-1 stock split? No effect on par value per share or retained earnings Decrease par value per share, and no effect on retained earnings No effect on par value per share, and decrease retained earnings Increase par value per share and retained earnings Question 19 2 pts If a corporation uses retention of earnings to finance the purchase of property instead of issuing equity securities, then the debt/equity...
Stock split Firm Growth Industries' current stockholders' equity account is as follows: Preferred stock Common stock (400,000 shares at $4 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $ 400,000 1,600,000 200.000 800.000 $3,000,000 a. Indicate the change in par value and the number of shares outstanding if the firm declares a 2-for-1 stock split. a. The number of shares outstanding after a 2-for-1 stock split is shares (Round to the nearest whole number.)
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