Homework Answers
Number of shares owned by Sophie= 5000*10 = 50,000
EPS= $100/10 = $10
DPS= $35/10 = $3.5
Share price= $1000/10 = $100
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Dividend policies and Stock Splits Sophie owns 5,000 shares of a Google-like stock. Which has an...
Please complete the following definitions 2 – a) Which is more critical to the dividend decision,...
Please complete the following definitions 2 – a) Which is more critical to the dividend decision, earnings or cash flow? Explain. b) Suppose the Board of Directors of The Staten Island Suppliers Co. announces on October 4th that the regular quarterly dividend of 50 cents per share will be payable to the holders of record at the close of business on November 15th 2019. What date is the declaration date, the holder of record date, the ex-dividend date, and the...
2 Stock splits versus stock dividends Assume that you own 1,200 shares of common stock of...
2 Stock splits versus stock dividends Assume that you own 1,200 shares of common stock of a company, that you have been receiving cash dividends of $2.75 per share per year, and that the company has a 3-for-2 stock split. Required: a) How many shares of common stock will you own after the stock split? b) What new cash dividend per share amount will result in the same total dividend income as you received before the stock split? c) What...
STOCK SPLITS & STOCK DIVIDENDS D: Roll Corporation curently has 465,000 shares of stock outstanding that...
STOCK SPLITS & STOCK DIVIDENDS D: Roll Corporation curently has 465,000 shares of stock outstanding that sell for $73 per share. Assuming no market imperfections or tax efects exist, what will the share price be after the following: Hint: You will need to determine the market value of the stock to answer the question Market value equals shares of stock * per share price. Roll Corporation has a five-for-three stock Split: Updated share price Roll Corporation has a 15% Stock...
Consider the following case: You have 100 common shares of The Staten Island Suppliers Co. (CSI)...
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Problem 10-3B Indicate effect of stock dividends and stock splits (L010-6) The Athletic Village has done very well the past year, and its stock price is now trading at $90 per share Management is considering either a 100% stock dividend or a 2 for 1 stock split. Required: Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value...
Mary Moneyhill owns 2,000 shares of ABC common stock at a current market price of $80...
Mary Moneyhill owns 2,000 shares of ABC common stock at a current market price of $80 per share. If ABC splits its stock 4-for-1, what would Mary’s position be after the split? 8,000 shares at $80 per share 500 shares at $320 per share 8,000 shares at $20 per share 500 shares at $80 per share
EXERCISE 12.7 Cash Dividends, Stock Dividends, and Stock Splits HiTech Manufacturing Company has 1.000.000 shares of...
EXERCISE 12.7 Cash Dividends, Stock Dividends, and Stock Splits HiTech Manufacturing Company has 1.000.000 shares of Si par value capital stock outstand: January 1. The following equity transactions occurred during the current year: Apr. 30 Distributed additional shares of capital stock in a 2-for-1 stock split. Market price arket price of stock was $35 per share. June 1 Declared a cash dividend of 50.60 per share. July Paid the 80.60 cash dividend to stockholders. Aug 1 Declared a 5 percent...
CH 14: 5. Stock dividends and stock splits Companies sometimes consider stock splits to bring down...
CH 14: 5. Stock dividends and stock splits Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases. Consider the following case: Tolbotics Inc. currently has 30,000 shares of common stock outstanding. Its management believes that its current stock price of $110 per share is too high. The company is planning to conduct stock splits in the ratio of 3 for 1 as described in the animation. (ANIMATION SPLITS $12 CERTIFICATE INTO THREE...
Required information Problem 10-3A Indicate effect of stock dividends and stock splits (LO10-6) The following information...
Required information Problem 10-3A Indicate effect of stock dividends and stock splits (LO10-6) The following information applies to the questions displayed below.) Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Problem 10-3A Part 1 Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus...
Stock splits Personal Finance Problem Nathan Detroit owns 400 shares of the drink company Monster Beverage...
Stock splits Personal Finance Problem Nathan Detroit owns 400 shares of the drink company Monster Beverage Corp., which he purchased for $125 per share. Nathan read in the Wall Street Journal that the company's board of directors had voted to split the stock 2-for-1. Just before the stock split, Monster Beverage shares were trading for $134.54 Answer the following questions about the impact of the stock split on his holdings and taxes. Nathan is in the 21% federal income tax...
2 Stock splits versus stock dividends Assume that you own 1,200 shares of common stock of a company, that you have been receiving cash dividends of $2.75 per share per year, and that the company has a 3-for-2 stock split. Required: a) How many shares of common stock will you own after the stock split? b) What new cash dividend per share amount will result in the same total dividend income as you received before the stock split? c) What...
STOCK SPLITS & STOCK DIVIDENDS D: Roll Corporation curently has 465,000 shares of stock outstanding that sell for $73 per share. Assuming no market imperfections or tax efects exist, what will the share price be after the following: Hint: You will need to determine the market value of the stock to answer the question Market value equals shares of stock * per share price. Roll Corporation has a five-for-three stock Split: Updated share price Roll Corporation has a 15% Stock...
Problem 10-3B Indicate effect of stock dividends and stock splits (L010-6) The Athletic Village has done very well the past year, and its stock price is now trading at $90 per share Management is considering either a 100% stock dividend or a 2 for 1 stock split. Required: Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value...
EXERCISE 12.7 Cash Dividends, Stock Dividends, and Stock Splits HiTech Manufacturing Company has 1.000.000 shares of Si par value capital stock outstand: January 1. The following equity transactions occurred during the current year: Apr. 30 Distributed additional shares of capital stock in a 2-for-1 stock split. Market price arket price of stock was $35 per share. June 1 Declared a cash dividend of 50.60 per share. July Paid the 80.60 cash dividend to stockholders. Aug 1 Declared a 5 percent...
Required information Problem 10-3A Indicate effect of stock dividends and stock splits (LO10-6) The following information applies to the questions displayed below.) Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Problem 10-3A Part 1 Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus...
Stock splits Personal Finance Problem Nathan Detroit owns 400 shares of the drink company Monster Beverage Corp., which he purchased for $125 per share. Nathan read in the Wall Street Journal that the company's board of directors had voted to split the stock 2-for-1. Just before the stock split, Monster Beverage shares were trading for $134.54 Answer the following questions about the impact of the stock split on his holdings and taxes. Nathan is in the 21% federal income tax...
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