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 |
Homework Answers
Number of shares of ABC owned by Mary = 2,000
ABC splits the shares 4 for 1 i.e., 1 share is split into 4 shares.
Number of shares of ABC owned by Mary after splitting = 2,000 * 4 = 8,000
Initial stock price = $80 per share
Stock price after splitting = $80 * (1/4) = $20
Ans: 8,000 shares at $20 per share
Add Answer to:
Mary Moneyhill owns 2,000 shares of ABC common stock at a
current market price of $80...
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.
Dividend policies and Stock Splits Sophie owns 5,000 shares of a Google-like stock. Which has an...
Dividend policies and Stock Splits Sophie owns 5,000 shares of a Google-like stock. Which has an Earnings Per Share (EPS) of $100 and a Dividend Per Share (DPS) of $35, and a share price of $1,000. The Google-like stock announces a 10 to 1 stock split. What would be the new EPS, DPS, and share price? How many shares would Sophie have after the split?
The market value of Yeates Corporation's common stock had become excessively high. The stock was currently...
The market value of Yeates Corporation's common stock had become excessively high. The stock was currently selling for $320 per share. To reduce the market price of the common stock, Yeates declared a 2-for-1 stock split for the 280,000 outstanding shares of its $8 par value common stock Required b. Determine the number of common shares outstanding and the par value after the split. (Round par value answer to 2 decimal places.) Number of common shares outstanding Par value per...
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?
ABC Corporation has outstanding shares of common stock of which A, B, C and D each...
ABC Corporation has outstanding shares of common stock of which A, B, C and D each owns 100 shares. In on transaction, ABC Corporation redeems 55 shares from A, 25 shares from B, and 20 shares from C. The earnings and profits of ABC Corporation was $100,000 on the date of redemption. The redemption price was $100 per share. The shareholders purchased their stock more than one year ago for $80 per share. What is the tax effect to C...
RESOURCES er 13 and Question 10 Paiva Corporation splits its common stock 2 for 1, when...
RESOURCES er 13 and Question 10 Paiva Corporation splits its common stock 2 for 1, when the market value is 80 per share. Por to the split, Paiva the split, the par value of the stock 100.000 shares of $10 par value common stock issued and outstanding. After is reduced to $5 per share is reduced to $2 per share OS is reduced to $20 per share remains the same
Assume that 2,000 shares of common stock with a par value of $12 and a market...
Assume that 2,000 shares of common stock with a par value of $12 and a market price of $16 per share are issued in exchange for land with a fair market value of $32,000. a. Prepare the journal entry to record the transaction. b. If the land's appraised fair market value were $33,000, what would be the correct entry to record the transaction? c. Prepare the necessary journal entry, assuming the same facts as in (b), except that the stock...
10. Stock dividends and stock splits Companies sometimes consider stock splits to bring down the price so that the stoc...
10. 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: Mainway Toy Company currently has 30,000 shares of common stock outstanding. Its management believes that its current stock price of $95 per share is too high. The company is planning to conduct stock splits in the ratio of 4 for 1 as described in the animation. 4 for 1 Stock split announcement r...
7) Mary issues common stock in exchange for legal services received. The common stock has a...
7) Mary issues common stock in exchange for legal services received. The common stock has a fair value of $3,000 and a par value of $500. What is the journal entry required to record this transaction? 8) By what amount did this transaction affect Mary’s total shareholder equity? (ignore taxes) show calculation 9) By what amount did this transaction affect Mary’s net income for the year? (ignore taxes) show calculation 10) Delta repurchased (reacquired) 100 shares of its common stock...
Companies sometimes consider stock splits to bring down the price so that the stock attracts more...
Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases. Consider the following case: Mainway Toy Company currently has 30,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of 4 for 1 as described in the animation. If Mainway Toy Company declares a 4-for-1 stock split, the price of the...
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.
Dividend policies and Stock Splits Sophie owns 5,000 shares of a Google-like stock. Which has an Earnings Per Share (EPS) of $100 and a Dividend Per Share (DPS) of $35, and a share price of $1,000. The Google-like stock announces a 10 to 1 stock split. What would be the new EPS, DPS, and share price? How many shares would Sophie have after the split?
The market value of Yeates Corporation's common stock had become excessively high. The stock was currently selling for $320 per share. To reduce the market price of the common stock, Yeates declared a 2-for-1 stock split for the 280,000 outstanding shares of its $8 par value common stock Required b. Determine the number of common shares outstanding and the par value after the split. (Round par value answer to 2 decimal places.) Number of common shares outstanding Par value per...
RESOURCES er 13 and Question 10 Paiva Corporation splits its common stock 2 for 1, when the market value is 80 per share. Por to the split, Paiva the split, the par value of the stock 100.000 shares of $10 par value common stock issued and outstanding. After is reduced to $5 per share is reduced to $2 per share OS is reduced to $20 per share remains the same
10. 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: Mainway Toy Company currently has 30,000 shares of common stock outstanding. Its management believes that its current stock price of $95 per share is too high. The company is planning to conduct stock splits in the ratio of 4 for 1 as described in the animation. 4 for 1 Stock split announcement r...
Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases. Consider the following case: Mainway Toy Company currently has 30,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of 4 for 1 as described in the animation. If Mainway Toy Company declares a 4-for-1 stock split, the price of the...
Most questions answered within 3 hours.
-
Calculate the approximate number of residues of Rubisco, which
is involved in carbon fixation in plants,...
asked 25 minutes ago -
Other decisions about scientific claims can have a much broader
impact.ENERGYarrow-10x10.png, environment, health, security - all...
asked 1 hour ago -
I need to write a research paper and work cited about this
topic: The United States...
asked 1 hour ago -
Hello! I was wondering if I could have some help?
If the vapor pressure of carvone...
asked 2 hours ago -
An economist wants to estimate the mean per capita income (in
thousands of dollars) for a...
asked 2 hours ago -
What would be the input/output characteristic of a circuit
obtained by putting two of your 2's-complementers...
asked 2 hours ago -
In Drosophila, the transition from the syncytial blastoderm
stage to the cellular blastoderm stage is a...
asked 2 hours ago -
Project management question:
Name 3 different types of resources (hint: humans are one
type)
asked 3 hours ago -
Consider the following reaction: C 2H 2( g) + 2H 2( g) C 2H 6(
g)...
asked 3 hours ago -
Consider a 1.0 L buffer containing 0.092 mol L-1 HCOOH and 0.100
mol L-1 HCOO-. What...
asked 3 hours ago -
Koch Realty has owned a vacant land with a FMV of
$775,000 and an adjusted basis...
asked 3 hours ago -
It is estimated 29% of all adults in United States invest in
stocks and that 85%...
asked 3 hours ago