Reference no: EM132685567
Bonus Plans, Inc. has 100,000 shares of common stock outstanding, no preferred stock, and common shares are selling at $35 per share. At the recent year-end, net earnings were at $200,000, which will be retained in entirety for investment purposes. A share-dividend of 10% is planned instead of cash dividends.
(A) Calculate the current earnings per share before stock dividend.
(B) You own 1,000 shares of the firm's stock. Compute your current proportionate ownership of stock. Next, calculate your proportionate ownership after the share-dividend payout.
(C) Calculate the market price per share after the share-dividend payout.
(D) Calculate the earnings per share after the share-dividend payout.
(E) What is the value of your ownership both before and after the share-dividend payout?
(F) Should you have a preference, either before or after the share-dividend payout? Explain.
|
How would set a company vision based on metrics
: How would you set a company's vision, goals and objectives based on metrics that leads you to measure the company's performance accurately.
|
|
Problem - Sales Mix and Break-Even Analysis
: Sales Mix and Break-Even Analysis - The sales mix for products L and M is 60% and 40%, respectively. Determine the breakeven point in units of L and M
|
|
Calculate abc operating cycle
: The recent income statement for ABC Co. shows sales were $4.4 million for the fiscal year, while cost of goods sold was $3.3 million.
|
|
Assess how IT governance will improve the effectiveness
: Developing IT Compliance Program, Assess how IT governance will improve the effectiveness of the IT Division to attain regulatory compliance
|
|
Calculate current earnings per share before stock dividend
: Bonus Plans, Inc. has 100,000 shares of common stock outstanding, no preferred stock, and common shares are selling at $35 per share. At the recent year-end
|
|
Determine the apparent dividend payout ratio
: Determine the apparent dividend payout ratio and amount of potential dividends.
|
|
Calculate the break-even point in sales units
: Ivey Inc. sells a product for $100 per unit. The variable cost is $75 per unit, and fixed costs are $30,000. Calculate the break-even point in sales units
|
|
Examine the list of characteristics of guerrilla marketing
: Examine Coca-Cola's Instagram and Pinterest pages. What is available on the sites? Does it integrate well with the guerrilla marketing campaign?
|
|
What is the last possible trade date to buy the shares
: Euro Consolidated has announced a cash dividend of $1.00 for holders of record to be executed on Wednesday, June 10.
|