Homework Answers
If a stock that declares a split, the number of shares you would own after the split increases. However, the price per share reduces. This is because the market capitalisation remains the same. So, as an investor, though the price you get for each share actually declines, the total number of shares increases.a company decides to move forward with a 2-for-1 stock split. In this case, current shareholders would receive an additional share of stock for each one already held.However the value of each share, however, will be reduced by 50%.So the market value of each share will drop by 50%. Option A is true.
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Question1 Coombs Corp. declared a two-for-one stock split. Solly Fogarty owned 500 shares of Coombs that...
need help with practice question An investor owns 500 shares of ABC corp. currently trading at...
need help with practice question
An investor owns 500 shares of ABC corp. currently trading at $10 per share. Each share pays $1 per year in dividends. Which of the following variables would not be affected if ABC did a 1-for-5 reverse stock split of its shares? a) The total cost of the investor's shares. Ob) The number of shares owned by the investor. c) The market price of each share. d) The dividend per share.
Cambridge Corp. declared a 5% stock dividend. Will Wales owned 300 shares of Cambridge before the...
Cambridge Corp. declared a 5% stock dividend. Will Wales owned 300 shares of Cambridge before the dividend. Cambridge shares were trading at $21 before the dividend. Which of the following will be true after the dividend is distributed? The total market value of Will's shares was $6,300 before the stock dividend but will probably decrease after the stock dividend. The total market value of Will's shares was $6,300 before the stock dividend and $6,615 after the stock dividend. Will owned...
A corporation, which had 37,400 shares of common stock outstanding, declared a 4-for-1 stock split. (a)...
A corporation, which had 37,400 shares of common stock outstanding, declared a 4-for-1 stock split. (a) What will be the number of shares outstanding after the split? (b) If the common stock had a market price of $96 per share before the stock split, what would be an approximate market price per share after the split? $__ per share? (c) Is a journal entry required for a stock split? Yes or no?
Tangshan Mining has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the announcement,...
Tangshan Mining has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the announcement, the firm's shares were trading at $50.00 per share. After the stock dividend, the firm's shares should trade at ________ per share.
20. Beta Corp declared a 2 for 1 stock split. Beta had 60 million share of...
20. Beta Corp declared a 2 for 1 stock split. Beta had 60 million share of common stock issued and outstanding. The market price per share at the time of the split was $25. The par value of the stock is $1. Record the stock split as a stock dividend. Record the stock dividend as a memo entry.
The company with the common equity accounts shown here has declared a 4-for-one stock split when...
The company with the common equity accounts shown here has
declared a 4-for-one stock split when the market value of its stock
is $33 per share. The firm�s 80-cent per share cash dividend on the
new (post split) shares represents an
increase of 25 percent over last year�s dividend on the presplit
stock.
The company with the common equity accounts shown here has declared a 4-for-one stock split when the market value of its stock is $33 per share. The...
If the board of directors approves a two for one stock split, an investor who owns...
If the board of directors approves a two for one stock split, an investor who owns 280 shares before the split owns ____________ shares after the split. Multiple Choice 280 140 420 560 840 James Turbyfil purchased 130 shares of stock for $74. James also paid $125 commission. What was the total purchase price for this transaction? Multiple Choice $74.00 $9,767.50 $9,657.50 $9,745.00 $125.00 Jo Bower owns 170 shares of stock. She purchased the stock for $38 a share. She...
A company's board of directors approved a 3-for-1 stock split. If you owned 60 shares before...
A company's board of directors approved a 3-for-1 stock split. If you owned 60 shares before the stock split at $23.54 per share, how many shares would you own after the split?
On June 18, Selma Corp. had 20,000 shares of $6 par value common stock outstanding before...
On June 18, Selma Corp. had 20,000 shares of $6 par value common stock outstanding before it declared a 2-for-1 stock split. 1 Right before the split, its stock was selling for $50 per share. Required: Answer the two questions below. Question #1: After the split, how many shares of common stock are outstanding? Answer: Question #2: How is a stock split likely to affect the market price of company's stock at the time of the split? Answer:
Which of the following statements about a 2-for-1 stock split is not true? A shareholder with...
Which of the following statements about a 2-for-1 stock split is not true? A shareholder with 200 shares before the split owns 400 shares after the split. Legal capital per share is reduced to half of what it was before the split. Total share capital increases. The market value of the shares will probably decrease.
need help with practice question
An investor owns 500 shares of ABC corp. currently trading at $10 per share. Each share pays $1 per year in dividends. Which of the following variables would not be affected if ABC did a 1-for-5 reverse stock split of its shares? a) The total cost of the investor's shares. Ob) The number of shares owned by the investor. c) The market price of each share. d) The dividend per share.
Cambridge Corp. declared a 5% stock dividend. Will Wales owned 300 shares of Cambridge before the dividend. Cambridge shares were trading at $21 before the dividend. Which of the following will be true after the dividend is distributed? The total market value of Will's shares was $6,300 before the stock dividend but will probably decrease after the stock dividend. The total market value of Will's shares was $6,300 before the stock dividend and $6,615 after the stock dividend. Will owned...
The company with the common equity accounts shown here has
declared a 4-for-one stock split when the market value of its stock
is $33 per share. The firm�s 80-cent per share cash dividend on the
new (post split) shares represents an
increase of 25 percent over last year�s dividend on the presplit
stock.
The company with the common equity accounts shown here has declared a 4-for-one stock split when the market value of its stock is $33 per share. The...
On June 18, Selma Corp. had 20,000 shares of $6 par value common stock outstanding before it declared a 2-for-1 stock split. 1 Right before the split, its stock was selling for $50 per share. Required: Answer the two questions below. Question #1: After the split, how many shares of common stock are outstanding? Answer: Question #2: How is a stock split likely to affect the market price of company's stock at the time of the split? Answer:
Which of the following statements about a 2-for-1 stock split is not true? A shareholder with 200 shares before the split owns 400 shares after the split. Legal capital per share is reduced to half of what it was before the split. Total share capital increases. The market value of the shares will probably decrease.
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