Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
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 (2,400,000 shares at $5 par)
$
12,000,000
Capital in excess of par*
5,000,000
Retained earnings
23,000,000
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 (Market price - Par value).
The company's stock is selling for $20 per share. The company had total earnings of $4,800,000 during the year. With 2,400,000 shares outstanding, earnings per share were $2. The firm has a P/E ratio of 10.
a.
What adjustments would have to be made to the capital accounts for a 10 percent stock dividend? Show the new capital accounts. (Do not round intermediate calculations. Input your answers in dollars, not millions (e.g. $1,230,000).)
Common stock
Capital in excess of par
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 your answers to 2 decimal places.)
EPS
Stock price
c.
How many shares would an investor end up with if he or she originally had 70 shares? (Do not round intermediate calculations and round your answer to the nearest whole share.)
Number of shares
d.
What is the investor's total investment worth before and after the stock dividend if the P/E ratio remains constant? (Do not round intermediate calculations and round your answers to the nearest whole dollar.)
Total Investment
Before stock dividend
After stock dividend
the SEC’s Division of Corporate Finance, illustrate what comments may Danle expect to receive regarding its disclosure in that period? Discuss the basis for the comments you have identified
Cashen Co. paid $2,400,000 to acquire all of the common stock of Janex Corp. on January 1, 2010. Janex's reported earnings for 2010 totaled $432,000, and it paid $120,000 in dividends during the year. On the consolidated financial statements for 2010..
The amount of joint cost allocated by physical measure method - Evaluate the amount of joint cost allocated to each product if the physical-measure method is used.
Compute the predetermined overhead rate for the year and compute the amount of underapplied or overapplied overhead for the year.
Sale on the financial statements What should Milley do?
Bee Wood, Inc., a construction company, decides to build a new warehouse. The following information is applicable to the project: Construction will begin January 1, 2016, and is expected to end December 31,2017. How much interest must be capitalized ..
Porschia is considering the acquisition of new machinery that will produce uniform benefits over the next 9 years. The following information is available:
Definition of Return on Investment and Cash Flow and identification of their role in finance
Determine the accounts receivable turnover ratio and average day's sales in receivables for the current year and Explain the meaning of each number
oung and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 3% uncollectible rate. Accounts more than 60 days are considered old and have a 40% uncollectible ..
question 1the first case focuses on madoff securities and in particular the role that his accountant david friehling
Masterson, Inc., which uses a process-cost accounting system, passes completed production from Department A to Department B for further manufacturing. The journal entry to record completed production in Department A requires:
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd