If a firm has retained earnings of $3.7 million, a common shares account of $5.7 million, and additional paid-in capital of $11.4 million,how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book valueof equity. (Enter your answers in dollars not in millions. Input all amounts as positive values. Indicate the direction of the effect byselecting "increase," "decrease," or "no change" from the drop-down menu.)Retained earningsCommon stockAdditional paid-in capitaldecreaseincreaseincreasetototo

The stock dividend can be defined as a payment of dividends by issuing additional shares of common…

Answered: If a firm has retained earnings of $3.7…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 12P

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If a firm has retained earnings of $3.4 million, a common shares account of $5.4 million, and additional paid-in capital of $10.8 million, how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Input all amounts as positive values. Indicate the direction of the effect by selecting "increase," "decrease," or "no change" from the drop-down menu.)
Assume that you are a consultant to a company, and you have been provided with the following data: D1 = $0.67; P0 = $30.00; and g = 8.00% (constant). What is the cost of equity from retained earnings? 10.41% 8.80% 9.82% 10.23% 10.54%
Jolie Foster Care Homes Incorporated shows the following data: Total Assets $ 1,970,000 2,460,000 2,740,000 2,830,000 Year 20X1 20X2 20X3 20X4 Net Income $ 192,000 221,000 196,000 189,000 Year 20X1 20X2 20X3 20X4 a-1. Compute the ratio of net income to total assets for each year. Note: Input your answers as a percent rounded to 2 decimal places. Return on Assets Stockholders' Equity $ 1,460,000 1,845,000 1,910,000 1,900,000 % % % % Total Debt $ 510,000 615,000 830,000 930,000
K Using the data in the following table, calculate the return for investing in Boeing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock immediately. The realized return from January 2, 2008, to January 2, 2009 is%. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Historical Stock and Dividend Data for Boeing Dividend Date 1/3/2011 2/9/2011 5/11/2011 8/10/2011 11/8/2011 1/3/2012 Date 1/2/2008 2/6/2008 5/7/2008 8/6/2008 11/5/2008 1/2/2009 " Price $85.61 $79.69 $84.49 $66.96 $48.59 $45.42 $0.38 $0.38 $0.38 $0.00 Print Done Price $66.37 $71.74 $79.99 $56.99 $64.03 $75.65 Dividend $0.44 $0.44 $0.44 $0.44
If your company earned net profit of $50 million in Round 7 and paid $10 million in dividends, assuming no change in Total Liabilities and Common Stock, what would the Total Assets be at the end of Round 7? What would the Retained Earnings be at the end of Round 7?
Using the data in the following table, immediately. 9 calculate the return for investing in Boeing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock The realized return from January 2, 2008, to January 2, 2009 is Data table %. (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Dividend Historical Stock and Dividend Data for Boeing Date 1/3/2011 2/9/2011 5/11/2011 8/10/2011 11/8/2011 1/3/2012 Date 1/2/2008 2/6/2008 5/7/2008 8/6/2008 11/5/2008 1/2/2009 Price $87.75 $79.76 $85.01 $66.77 $47.75 $44.02 $0.37 $0.37 $0.37 $0.00 Print Done Price $67.58 $70.28 $80.89 $56.25 $64.88 $74.91 Dividend $0.41 $0.41 $0.41 $0.41 I X
A company reports the following year-end data: Sales of $100,000; Earnings per share of $5; Market price per (common) share of $50; and Annual cash dividends per share of $2. Compute the (a) dividend yield and (b) price-earnings ratio. Complete this question by entering your answers in the tabs below. Price Earnings Ratio Compute the dividend yield. Dividend Yield Choose Numerator: Dividend Yield Price Earnings Ratio Dividend Yield Choose Denominator: A company reports the following year-end data: Sales of $100,000; Earnings per share of $5; Market price per (common) share of $50; and Annual cash dividends per share of $2. Compute the (a) dividend yield and (b) price-earnings ratio. Complete this question by entering your answers in the tabs below. Compute the price-earnings ratio. Choose Numerator: Price-Earnings Ratio / Choose Denominator: Dividend yield Price Earnings Ratio >
Determine the missing amounts. (Hint: First determine the amount of increase or decrease in stockholders' equity during the year.) Round your answers to the nearest dollar. Enter your answers as positive values. Freeman Heyward Jones Ramirez Beginning of the year: Assets $ 693,100 $ 810,900 $ 298,000 $ Liabilities 415,900 421,700 226,500 377,400 End of the year: Assets 859,400 1,135,300 268,200 780,000 Liabilities 374,300 356,800 238,400 427,700 During the year: Additional common stock issued 162,200 29,800 125,800 Dividends 48,500 48,700 184,500 Revenue 228,700 342,700 352,300 Expenses 124,800 210,800 366,500 402,600
Question No 3 (part i) (remaining part) Answer the following. i) The future earnings, dividends, and common stock price of Nabeel Inc. are expected to grow 7% per year. Common stock currently sells for $23.00 per share; its last dividend was $2.00. d) If you have equal confidence in the inputs used for the three approaches, what is your estimate of cost of common equity?
If a company receives $12,600 from a stockholder, the effect on the accounting equation would be: Multiple Choice Assets decrease $12,600 and equity decreases $12,600. Assets increase $12,600 and liabilities decrease $12,60. Assets increase $12,600 and liabilities increase $12,600, Liabilities increase $12,600 and equity decreases $12,600. Assets increase $12,600 and equity increases $12,600. Type here to search
A firm's target dividend is $4.40 and the prior-period dividend is $2.75. What is the change in dividends if the adjustment coefficient (B) is equal to 1? O $-3.30 O $3.30 00 O $1.65
1. Calculate the required rate of return on equity National Co. as of the beginning of Year +1 using CAPM 2. Calculate the sum of the present value of total dividends for Years +1 through +5. (Dividend based valuation model) 3. Compute the present value of continuing value as of the beginning of Year +1 using the dividend valuation model

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