Question

tpx 3. 10.00 points Problem 18-18 Stock dividend and its effect [LO18-4] a some kind of dividend The capital accounts for the firm are as follows 6,000.000 26 000.000 The firm has a P/E ratio of 10 your answers in dollars, not millions (e.g. $1,230,000).) RA ENG 105PM 1/12/2019 O Type here to search
M Chapter 18 HW 7-4jpg O ezto mheducat b. What adjustments would be made to EPS and the stock price? (Assume the P/E ratio remains constant.) (Do not round intermediate calculations and round you decimal places.) EPS Stock price c·How many shares would an investor end up with if he or she originally had 90 shares? (Do not round intermediate calculations and round your answer to the share.) of s total investment worth before and after the stock dividend if the P/E ratio remains constant? (Do not round intermediate calculations and d. What is the to the nearest whole dollar.) Total 0 Type here to se arch
0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
tpx 3. 10.00 points Problem 18-18 Stock dividend and its effect [LO18-4] a some kind of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • .com/hm.tpx 8. 1000 value 10.00 points Problem 18-21 Cash dividend versus stock repurchase [LO18-5) The Carlton...

    .com/hm.tpx 8. 1000 value 10.00 points Problem 18-21 Cash dividend versus stock repurchase [LO18-5) The Carlton Corporation has $6 million in earnings after tax cash es and 3 milion shares outstanding. The stock trades at a P/E of 10. The firm has $2 million in excess a. Compute the current price of the stock. ( Do not round intermediate calculations and round your answer to 2 decimal places.) price b. f the $2 million is used to pay dividends, how...

  • 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 $5 par) $ 12,500,000 Capital in excess of par* 5,000,000 Retained earnings 22,500,000 Net worth $ 40,000,000 *The increase in capital in excess of par as a result of a stock dividend is equal to the new shares created times...

  • 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) $ 15,000,000 Capital in excess of par* 6,000,000 Retained earnings 24,000,000 Net worth $ 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...

  • 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...

  • Health Systems Inc. is considering a 10 percent stock dividend. The capital accounts are as follows:...

    Health Systems Inc. is considering a 10 percent stock dividend. The capital accounts are as follows:       Common stock (4,000,000 shares at $10 par) $ 40,000,000   Capital in excess of par* 25,000,000   Retained earnings 45,000,000        Net worth $110,000,000 *The increase in capital in excess of par as a result of a stock dividend is equal to the shares created times (Market price – Par value). The company’s stock is selling for $45 per share. The company had total earnings of...

  • 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...

  • tpx 17 HW 6. 10.00 points 0 you did not Problem 17-13 Procedures associated with a...

    tpx 17 HW 6. 10.00 points 0 you did not Problem 17-13 Procedures associated with a rights offering LO17-3] of the new shares. The stock is currently selling for $90 rights-on a. What is the value of a right? (Do not round intermediate calculations. Round your answer to 2 4.20 O Type here to search M Chapter 17 HW px Value per right 4201 b-1. How many of the new shares could Carol buy if she exercised all her rights?...

  • Sve & 10.00 points Problem 17-16 Relation of rights to EPS and the price earnings ratio...

    Sve & 10.00 points Problem 17-16 Relation of rights to EPS and the price earnings ratio [LO17-3 The current market price of Waker common stock is $88 per share rights-on. The company's net income this year is $26.00 million. A rights offering has been announced in which 720.000 new shares will be sold at $00 50 per share. The subscription price plus mine rignts is needed to buy ane of the new shares (Do not round intermediate caleulations and round...

  • Galles Corporation is evaluating an extra dividend versus a share repurchase. In either case, $12,000 would...

    Galles Corporation is evaluating an extra dividend versus a share repurchase. In either case, $12,000 would be spent. Current earnings are $1.90 per share, and the stock currently sells for $48 per share There are 5,000 shares outstanding. Ignore taxes and other imperfections a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth per share. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)...

  • Seved Help Save & Exit You skipped this question in the previous attempt. Check my 3...

    Seved Help Save & Exit You skipped this question in the previous attempt. Check my 3 Problem 2-18 10 points 8 02:00-23 Monique's Boutique has assets of $600,000, current liabilities of $150,000, and long-term liabilities of $120,000. There is $75,000 in preferred stock outstanding: 30,000 shares of common stock have been issued a. Compute book value (net worth) per share. (Round the final answer to 2 decimal places.) Book value per share $ b. If there is $33,600 in earnings...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT