Emerald Co. has 50,000 shares at $12 par common stock outstanding. If the company decides to...
Emerald Co. has 50,000 shares at $12 par common stock outstanding. If the company decides to declare a 2-to-1 stock split, the total stockholders' equity will:
Select one:
a. increase by $600,000
b. not change
c. increase by $300,000
d. decrease by $50,000
Homework Answers
A stock split causes a decrease of market price of individual shares, not causing a change of total market capitalization of the company.
The answer is b. not change
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Emerald Co. has 50,000 shares at $12 par common stock
outstanding. If the company decides to...
35) Burkert Company has 50,000 shares of $1 par value common stock issued and outstanding. The...
35) Burkert Company has 50,000 shares of $1 par value common stock issued and outstanding. The company also has 9000 shares of $100 par value, 4% cumulative preferred stock outstanding. Burkert did not pay the preferred dividends in 2016 and 2017. For the common stockholders to receive a dividend in 2018, the board of directors must declare dividends in excess of A) $108,000. B) $72,000 C) $36,000 D) $144,000
Outstanding Shares Willis & Company has 20 million shares of $1 par value common stock outstanding....
Outstanding Shares Willis & Company has 20 million shares of $1 par value common stock outstanding. The company believes that its current market price of $100 per share is too high and decides to execute a 4-for-1 forward stock split to lower the price. How many shares will be outstanding following the stock split? million What will be the new par value per share? $
11)Bill issued 200,000 shares of $2 par value stock. The book value of Bill’s common stockholders'...
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Willis & Company has 20 million shares of $1 par value common stock outstanding. The company...
Willis & Company has 20 million shares of $1 par value common stock outstanding. The company believes that its current market price of $100 per share is too high and decides to execute a 4-for-1 forward stock split to lower the price. How many shares will be outstanding following the stock split? What will be the new par value per share?
Pearce & Company has 10 million shares of $2 par value common stock outstanding. The company...
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1) Bill issued 200,000 shares of $2 par value stock. The book value of Bill’s common...
1) Bill issued 200,000 shares of $2 par value stock. The book value of Bill’s common stockholders' equity is equal to $20 million. On August 1, he implements a two-for-one stock split. After the stock split, the total number of shares outstanding is 400000 shares, the total par value is $1 and the total book value is $20 million. Assuming the market price per share of Bill’s stock was $150/share before the split, what should be the market price per...
Contributed Capital: Common Stock - $4 par value, 5,000,000 shares authorized, 300,000 shares issued and outstanding...
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Q. 02: Johore Trading Company has 2.4 million shares of common stock outstanding, and the present...
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Sheffield Company has two classes of capital stock outstanding: 7%, $100 par preferred and $2 par...
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35) Burkert Company has 50,000 shares of $1 par value common stock issued and outstanding. The company also has 9000 shares of $100 par value, 4% cumulative preferred stock outstanding. Burkert did not pay the preferred dividends in 2016 and 2017. For the common stockholders to receive a dividend in 2018, the board of directors must declare dividends in excess of A) $108,000. B) $72,000 C) $36,000 D) $144,000
Outstanding Shares Willis & Company has 20 million shares of $1 par value common stock outstanding. The company believes that its current market price of $100 per share is too high and decides to execute a 4-for-1 forward stock split to lower the price. How many shares will be outstanding following the stock split? million What will be the new par value per share? $
Contributed Capital: Common Stock - $4 par value, 5,000,000 shares authorized, 300,000 shares issued and outstanding Paid capital in Excess of Par, Common Retained Earnings Total Stockholders' Equity $1,200,000 1.600.000 2.000.000 $4,800,000 The following transactions occurred in sequence during 2019: a. Issued 40,000 shares of $100 par value, 10% cumulative preferred stock at par, b. Declared a 2 per 1 stock split on outstanding common shares. c. Bought land valued at $980,000 by using 100,000 shares of common stock. d....
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