After the distribution of the stock dividend

Assignment Help Financial Management
Reference no: EM131078184

The company with the common equity accounts shown here has declared a 10 percent stock dividend when the market value of its stock is $40 per share. Common stock ($1 par value) $ 390,000 Capital surplus 847,000 Retained earnings 3,730,800 Total owners' equity $ 4,967,800 What would be the number of shares outstanding, after the distribution of the stock dividend? (Do not round intermediate calculations.) New shares outstanding What would the equity accounts be after the stock dividend? (Do not round intermediate calculations.) Common stock $ Capital surplus Retained earnings Total owners' equity $

Reference no: EM131078184

Questions Cloud

Inflation adjustments-average-risk investment : The Rodriguez Company is considering an average-risk investment in a mineral water spring project that has a cost of $155,000. The project will produce 950 cases of mineral water per year indefinitely. The current sales price is $144 per case, and th..
Determine the after-tax net present worth of the investment : A farmer bought a new harvester for $120,000. The harvesters operating expenses averaged $10,000 per year but the harvester saved $40,000 per year in labor costs. It was depreciated over a life of 5 years using the SYOD method, assuming a salvage val..
Compute the financial break-even price of the book : Lee Inc. purchases a $300,000 digital color printer, which will be fully depreciated according to the straight-line method over its 5-year economic life, for a 4-year publishing project. The printer will be sold for $75,000 at the termination of the ..
What was average nominal risk premium on crash-n-burn stock : You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 9 percent, -12 percent, 21 percent, 31 percent, and 18 percent. Suppose the average inflation rate over this period was 3.4 percent and the average T-bil..
After the distribution of the stock dividend : The company with the common equity accounts shown here has declared a 10 percent stock dividend when the market value of its stock is $40 per share. Common stock ($1 par value) $ 390,000 Capital surplus 847,000 Retained earnings 3,730,800 Total owner..
Value bond outstanding with coupon rate : Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.84 percent paid semiannually and 7 year to maturity. The yield to maturity of the bond is 1.06 percent. What is the price of the bond?
What will price of this bond be if interest is paid annually : A $1,000 bond has a coupon rate of 10 percent and matures after eight years. Interest rates are currently 7 percent. What will the price of this bond be if the interest is paid annually? What will the price be if investors expect that the bond will b..
High-yield junk bond with the features : Tinker Spy Corp. has a high-yield junk bond with the following features: Principal $500 Coupon 0% for years 1 through 5 and 11% for years 6 through 10 Maturity 10 years The current interest rate on comparable debt is 10 percent. If you expect that th..
End of project non-operating cash flows-initial investment : XYZ is interested in buying a new machine which is expected to cost $85,000. In addition, the company will pay $15,000 in shipping and $5,000 in installation costs. The MACRS category is five years and the company expects to sell the machine at 25% a..

Reviews

Write a Review

Financial Management Questions & Answers

  Accounting break-even quantity-cash break-even quantity

Consider a project with the following data: accounting break-even quantity = 20,400 units; cash break-even quantity = 19,000 units; life = eight years; fixed costs = $190,000; variable costs = $42 per unit; required return = 15 percent. Ignoring the ..

  Risk-free rate have to be for the two stocks

Stock Y has a beta of 1.3 and an expected return of 18.5%. Stock Z has a beta of 0.70 and an expected return of 12.1%. If the risk-free rate is 8% and the market risk premium is 7.5%, are these stocks correctly priced? If not, what would the risk-fre..

  Determine operational expenditures

Compute the unit sales price at which Blake must sell its product in the current year in order to earn a budgeted target profit of £200,000.

  Financial arbitrage is based on the theory

Financial arbitrage is based on the theory that......

  Compute the present value of interest tax shields generated

Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes only. The marginal tax rate is Tc = 0.35.a. A $1,800, one-year loan at 10% b. A four-year loan of $1,800 at 10%. Assume no principal is r..

  Semi annual bonds outstanding-what is the yield to maturity

Signature Sweets, Inc. has 10 percent semi annual bonds outstanding with 20 years to maturity. The latest quote on these bonds is 120.00 percent of the face value. What is the yield to maturity?

  Increase the current value of a stock

Which one of the following will increase the current value of a stock?

  Criticisms applies to net present value analysis

Which one of these criticisms applies to net present value analysis?

  Not exercise the option and what would be your gain or loss

You have purchased a call option contract on Smith & Smith common stock. The option contract is for 100 shares. The option has an exercise price of $43.00 and S & S’s stock currently trades at $40.00. The option premium is quoted at $2.00. If the sto..

  Establish a coverdale education

The Jones’ want to save for their child’s education. They have four options:   (1) Establish a 529 plan; (2) Establish a custodian Roth IRA; (3) Establish a Coverdale Education IRA; (4) Establish a “regular” non-tax deferred account.   State which on..

  Responding to ordinary supply and demand factors

Every time gas prices go up charges fly back and forth in the news about whose fault it is. Some say the oil companies are getting rich off the backs of the rest of us and cite Exxon-Mobil’s record profits to prove it, but others say they are just re..

  What is maximum amount of cost recovery cassie can deduct

In July 2014, Cassie purchases equipment for $55,000 to be used in her business. Assuming Cassie has a small net loss from her business prior to the deduction, what is the maximum amount of cost recovery Cassie can deduct? In 2008, Naila purchased la..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd