Clean Company is a little short of cash so they are planning to do an 8%...
Clean Company is a little short of cash so they are planning to do an 8% stock dividend instead. Callie has 300 shares of Clean and they are currently selling at $55.00 per share. Clean has a total of 20,000 shares outstanding.
Before the stock dividend, what is the total value of Callie’s investment in Clean Company? ___________________
After the stock dividend, Callie will have ______________ shares.
After the stock dividend, the shares will be worth ___________ per share.
After the stock dividend, the total value of Callie’s investment in Clean Company will be _____________________.
Homework Answers
Shares after stock dividend = current shares*(1+stock dividend%) = 300*(1+0.08) = 324
Price after stock dividend = current price/(1+stock dividend%) = 55/(1+0.08) =50.925
Value = price*shares = 50.925*324 = 16500
Add Answer to:
Clean Company is a little short of cash so they are planning to
do an 8%...
Dividend Policy Deserts Corp. will issue dividend. The dividend will be $0.5 per share, and there...
Dividend Policy Deserts Corp. will issue dividend. The dividend will be $0.5 per share, and there are 20,000 shares of stock outstanding. The firm has $10,000 excess cash, $900,000 fixed assets and 1,000,000 equity. a. What is Deserts’ ex-dividend price? b. Suppose that instead of paying a dividend, Deserts Corp announces that it will repurchase stock with a market value of $10,000. What happens to the stock price when the repurchase is announced? c. Deserts Corp. has regularly paid a...
2. What will the price per share be after the repurchase? (Do not round intermediate calculations...
2. What will the price per share be after the repurchase?
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 14,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 53,700 Equity $ 438,700 Fixed 385,000 assets 438,700 Total $ Total 438,700 $ Instead of a dividend of $1.30 per share, the company has announced a share...
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...
The balance sheet for Levy Corp. is shown here in market value terms. There are 5,000...
The balance sheet for Levy Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 43,800 Equity $ 363,800 Fixed assets 320,000 Total $ 363,800 Total $ 363,800 Instead of a dividend of $1.50 per share, the company has announced a share repurchase of $7,500 worth of stock. How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your final...
Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in...
Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend. The capital accounts for the firm are as follows: Common stock (3,000,000 shares at $5 par) Capital in excess of par* Retained earnings Net worth $ 15,000,000 6,000,000 24,000,000 $ 45,000,000 *The increase in capital in excess of par as a result of a stock dividend is equal to the new shares created times...
The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 8,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 44,400 Equity $ 424,400 Fixed assets 380,000 Total $ 424
The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 8,000 shares of stock outstanding. Market Value Balance Sheet Cash$44,400 Equity$424,400 Fixed assets380,000 Total$424,400 Total$424,400 Instead of a dividend of $1.20 per share, the company has announced a share repurchase of $9,600 worth of stock. a.How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)b.What will the price per share be after the repurchase? (Do not...
Built Rite Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,500 would be spent. Current earnings are $0.80 per share, and the stock currently selts for $...
Built Rite Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,500 would be spent. Current earnings are $0.80 per share, and the stock currently selts for $33 per share. There are 250 shares outstanding. Ignore taxes and other imperfections. You own one share of stock in this company. te Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,500 would spent. Current earnings are $0.80 per share, and the stock currently...
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: Tolbotics Inc. currently has 20,000 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 2 for 1 as described in the animation. If Tolbotics Inc. declares a 2-for-1 stock split, the price of the company’s stock...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE)...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company's objectives. True or False: Larry will receive dividends together with preferred stockholders. O True False Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company's stock...
Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in...
Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend The capital accounts for the firm are as follows: Common stock (2,500,000 shares at $10 par) Capital in excess of part Retained earnings $25,000,000 5,000,000 20.000.000 $50,000,000 Net worth "The increase in capital in excess of par as a result of a stock dividend is equal to the new shares created times (Market price...
2. What will the price per share be after the repurchase?
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 14,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 53,700 Equity $ 438,700 Fixed 385,000 assets 438,700 Total $ Total 438,700 $ Instead of a dividend of $1.30 per share, the company has announced a share...
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...
Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend. The capital accounts for the firm are as follows: Common stock (3,000,000 shares at $5 par) Capital in excess of par* Retained earnings Net worth $ 15,000,000 6,000,000 24,000,000 $ 45,000,000 *The increase in capital in excess of par as a result of a stock dividend is equal to the new shares created times...
Built Rite Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,500 would be spent. Current earnings are $0.80 per share, and the stock currently selts for $33 per share. There are 250 shares outstanding. Ignore taxes and other imperfections. You own one share of stock in this company. te Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,500 would spent. Current earnings are $0.80 per share, and the stock currently...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company's objectives. True or False: Larry will receive dividends together with preferred stockholders. O True False Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company's stock...
Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend The capital accounts for the firm are as follows: Common stock (2,500,000 shares at $10 par) Capital in excess of part Retained earnings $25,000,000 5,000,000 20.000.000 $50,000,000 Net worth "The increase in capital in excess of par as a result of a stock dividend is equal to the new shares created times (Market price...
Most questions answered within 3 hours.
-
From past history, the scores on a statistics test are normally
distributed with a mean of...
asked 14 minutes ago -
Calculate the gravitational field strength on the highest peak
of Everest (8848 m above the Earth).
asked 14 minutes ago -
the energy value of carbohydrates is 4.0 cal/g. calculate the
energy in 250 g of carbohydrates,...
asked 16 minutes ago -
i
need the summary of this article “Why I Don’t Trust The Video Games
Cause Violence”...
asked 35 minutes ago -
Draw the reactants and products of the following
reaction:
3-ethyl-2-heptene + HOH → 3-ethyl-3-heptanol +
3-ethyl-2-heptanol...
asked 33 minutes ago -
Determine the ratio of adipic acid and butylene glycol that
should be used to obtain a...
asked 42 minutes ago -
Calculate the ratio of the resistance of 11.0 m of aluminum wire
2.5 mm in diameter,...
asked 36 minutes ago -
Kinkaid Co. is incorporated at the beginning of this year and
engages in a number of...
asked 39 minutes ago -
when setting up a simple pendulum, calculate the string length
required for the period to equal...
asked 58 minutes ago -
: A small but very close dense mass of 389 kg is brought close
to a...
asked 59 minutes ago -
Create a class called Hotel. The hotel class will track the
current reservations for your one-room...
asked 1 hour ago -
In space, a 4.0 kg metal ball moving 30 m/s has a head on
collision with...
asked 1 hour ago