How much does the firm currently earn per share

Assignment Help Finance Basics
Reference no: EM131109232

Sarah Warren currently holds 400 shares of Nutri-Foods. The firm has 40,000 shares outstanding. The firm most recently had earnings available for common stockholders of $80,000, and its stock has been selling for $22 per share. The firm intends to retain its earnings and pay a 10% stock dividend.

a. How much does the firm currently earn per share?

b. What proportion of the firm does Warren currently own?

c. What proportion of the firm will Warren own after the stock dividend? Explain your answer.

d. At what market price would you expect the stock to sell after the stock dividend?

e. Discuss what effect, if any, the payment of stock dividends will have on Warren's share of the ownership and earnings of Nutri-Foods.

Reference no: EM131109232

Questions Cloud

Use the kingdon concepts as a guide to provide structure : OVERVIEW: When attempting to prove a point, attempt to balance and share both opinion and factual statements. You must explain your thought process by saying "why". Give a clear explanation for "why" you reached your conclusion.
Determine the firm''s current earnings per share : Determine the firm's current earnings per share. If Sam Waller currently owns 500 shares of the firm's stock, determine his proportion of ownership currently and under each of the proposed stock dividend plans. Explain your findings.
Why did not the fasb cover both types of postretirement : Why didn't the FASB cover both types of postretirement benefits-pensions and healthcare-in the earlier pension accounting rules?
Effective communication in a business environment : Effective communication skills are essential in the workplace. Some businesses invest in training their employees on how to effectively communicate, because effective communication skills go beyond conversations.
How much does the firm currently earn per share : How much does the firm currently earn per share. What proportion of the firm does Warren currently own?
Mass percent of silica : A type of clay is found to be 48% silica. A field sample of this clay is 15% water. What is the mass percent of silica in a dry sample of this clay?
Rows on the periodic table : And how is electronegativity determined (not by relative size, but by concrete numbers) for the other rows on the periodic table?
What are the significant differences : Show the effects on the firm of a 1%, 5%, 10%, and 20% stock dividend. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends? Personal Finance Problem
Human aspect of ethics and its links to business success : Because of the human aspect of ethics and its links to business success, corporate leaders must be careful about their behaviors, and how they address problems. For this assignment, you must select the code of ethical conduct for one (1) of the f..

Reviews

Write a Review

Finance Basics Questions & Answers

  1 if the euro appreciates how will this affect your

1. if the euro appreciates how will this affect your purchases of u.s. and german goods? explain.2. suppose that you

  List of systemically important financial institution

List and describe reportable business segments in fiscal years 2010 and 2014 - Is this company on Fed's list of systemically important financial institution

  What would the approximate price of a stock be

What would the approximate price of a stock be if an average investor requires a return of 14% for an average stock, junk bonds are yielding 22% and 3 month T-Bills are yielding just 4.5%.

  Find the missing amounts for companies

Find the missing amounts for companies A, B, and C. And make the journal entries necessary to record the following eight transactions.

  Demonstrate to your colleagues how you would calculate the

demonstrate to your colleagues how you would calculate the expected rate of returnr-hat also called r-hat and beta on a

  You have 100 000 to invest in a portfolio containing share

you have 100 000 to invest in a portfolio containing share x and share y. your goal is to create a portfolio that has

  Test the hypothesis at the 005 level of significance that

a ucla researcher claims that the average life span of mice can be extended by as much as 8 months when the calories in

  What is the project''s net present value

What is the project's net present value? While Kim expects the cash flows to be $3 million a year, it recognizes that he cash flows could, in fact, be much higher or lower, depending on whether he Korean government imposes a large hotel tax.

  Create an expense on the income statement

Why do capital expenditures increase assets while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings? Explain in ..

  Social security money

I have some good news and some bad news. The bad news is: no member of you family has ever lived past age 60. The good news is: think of how much social security money you family has saved the rest of us! Anyway you just "celebrated" your 40t..

  Evaluation of company from the metrics

Suppose You are working at BM Corporation has paid off in many thousand of dollars of profit sharing to you this year. You know it is best to diversity your investment and not put it all back into your company through stocks.

  After investing the additional funds she wants the funds

portfolio beta a mutual fund manager has a 20 million portfolio with a beta of 1.5. the risk-free rate is 4.5 and the

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