User Account

All Pages

Discuss the effects of the alternative actions

Assignment Help Accounting Basics
Reference no: EM131788974

On October 31, the stockholders' equity section of Heins Company consists of common stock $325,000 and retained earnings $895,000. Heins is considering the following two courses of action: (1) declaring a 6% stock dividend on the 32,500, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.

Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par value per share.

Before
Action		 After
Stock
Dividend		 After
Stock
Split
Stockholders' equity
   Paid-in capital
      Common stock $ 325000 $ $
      In excess of par      
         Total paid-in capital                     
   Retained earnings 895000    
         Total stockholders' equity $ 927500 $ $
Outstanding shares      
Par value per share $ $ $

Reference no: EM131788974

Questions Cloud

Discuses plan stakeholder management : In one page, discuses Plan Stakeholder Management, Manage Stakeholder Engagement and Control Stakeholder Engagements in project management terms.
Discuss the implications of the absolute threshold : Many studies have shown that our sensory detection abilities decline as we grow older. Discuss the implications of the absolute threshold for marketers.
How should this function information be stored : Complicating the situation is the possibility that one of these functions might also call itself-a phenomenon known as recursion
Find the price for which a fresh gallon of milk sells : find the price for which a fresh gallon of milk sells. Assume a service level of 97.5% and that the store purchases milk for $2.44 per gallon.
Discuss the effects of the alternative actions : Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity
Difference in distribution mechanism for goods and services : Explain the difference in the distribution mechanism for goods and services in the market and command systems. Discuss the implications of this difference.
Computer memory using a binary representation : Data items are stored in computer memory using a binary representation. In particular, positive integers are commonly stored using the base-two representation
Contents of the array referred : Give the value of my Top and the contents of the array referred to by my Array in the stack s after the code segment is executed, or indicate why an error occur
Explain effects of given factors on the economy price level : Explain the effects of each of the following factors on the economy's price level and real GDP. Illustrate your explanations with appropriate diagrams.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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