Problem 10-3A (Algo) Indicate effect of stock dividends and stock splits (LO10-6)Big Meadows Sports has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share.The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split.Required:1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equityaccounts, shares outstanding, par value, and share price.2. State whether the statement "The primary reason companies declare a large stock dividend or a stock split is to lower the tradingprice of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors." is true or false.Complete this question by entering your answers in the tabs below.Required 1 Required 2Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders'equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.)Common stock, $1 par valueAdditional paid-in capitalTotal paid-in capitalRetained earningsTotal stockholders' equityShares outstandingPar value per shareShare priceBeforeAfter 100%StockDividend$ 1,20051,00052,20023,050$ 75,250 $1,200$ 1.00$1140Required 2After 2-for-1Stock Split0 $00Required 1Required 2 >Problem 10-3A (Algo) Indicate effect of stock dividends and stock splits (LO10-6)Big Meadows Sports has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share.The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split.Required:1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equityaccounts, shares outstanding, par value, and share price.2. State whether the statement "The primary reason companies declare a large stock dividend or a stock split is to lower the tradingprice of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors." is true or false.Complete this question by entering your answers in the tabs below.Required 1State whether the statement "The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of thestock to a more acceptable trading range, making it attractive to a larger number of potential investors." is true or false.State whether the statement "The primary reason companies declare a large stock dividend or a stock split is to lower the trading price ofthe stock to a more acceptable trading range, making it attractive to a larger number of potential investors.< Required 1Required 2 >

The 100% stock dividend would increase the number of shares outstanding. The stock split also…

Problem 10-3A (Algo) Indicate effect of stock dividends and stock splits (LO10-6) Big Meadows Sports has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. 2. State whether the statement "The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors." is true or false. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.)

Problem 10-3A (Algo) Indicate effect of stock dividends and stock splits (LO10-6) Big Meadows Sports has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. 2. State whether the statement "The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors." is true or false. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.)

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 4FPE: The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million...

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! Required information Problem 10-3A Indicate effect of stock dividends and stock splits (LO10-6) [The following information applies to the questions displayed below.] Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Problem 10-3A Part 1 Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.) After 100% After 2-for-1 Before Stock Stock Split Dividend Common stock, $1 par value $ 1,000 Additional paid-in capital 44,000 Total paid-in capital 45,000 Retained earnings 22,350 Total stockholders' equity $ 67,350 0 $ Shares outstanding 1,000 Par value per share $ 1.00 Share price 100
! Required information [The following information applies to the questions displayed below.] Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.) X Answer is complete but not entirely correct. After 100% Stock Dividend $ 2,200 53,000 55,200 55,200 X 110,400 Common stock, $1 par value Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Shares outstanding Par value per share Share price Before $ 1,000 55,000 56,000 23,450 $ 79,450 1,000 $ 1.00 $ 122 $ $ 2,200 x After 2- for-1 Stock Split $ 1,100 x 53,000 54,100 55,200 $…
Required information Problem 10-3A Indicate effect of stock dividends and stock splits (LO10-6) [The following information applies to the questions displayed below.] Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Problem 10-3A Part 1 Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.) After 100% Stock After 2-for-1 Before Stock Split Dividend Common stock, $1 par value $ 1,200 Additional paid-in capital E Total paid-in capital Retained earnings 54,000 55,200 23,350 Total stockholders' equity $ 78,550 Shares outstanding Par value per share Share price 1,200 $ 1.00 $ 120
Problem 10-3A Indicate effect of stock dividends and stock splits (LO10-6) Skip to question [The following information applies to the questions displayed below.] Sammy’s Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Problem 10-3A Part 1 Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders’ equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.)
q6- You are using Bloomberg to look up financial information for Delta Ltd. You determine that the share price is currently $13.80 and that the value of dividends paid over the past year was $1.41. You paid $8.47 for the share exactly one year ago. What would you expect the dividend yield to be according to Bloomberg? a. 62.93% b. 10.22% c. 79.57% d. 16.65%
What effect will a two-for-one stock split have on the following items found on a firm's financial statements? a. Earnings per share $5.00. Round your answer to the nearest cent. Initial amount $5.00 $ b. Total equity $10,000,000. Round your answer to the nearest dollar. Initial amount $ New amount Initial amount $4,000,000 New amount $10,000,000 c. Long-term debt $4,600,000. Round your answer to the nearest dollar. Effect $ New amount Effect Initial amount $4,600,000 $ d. Additional paid-in capital $1,689,000. Round your answer to the nearest dollar. Effect New amount $ New amount -Select- Effect New amount Initial amount $1,689,000 e. Number of shares outstanding 800,000. Round your answer to the nearest whole number. Initial amount 800,000 f. Earnings $4,000,000. Round your answer to the nearest dollar. Effect -Select- -Select- -Select- Effect -Select- -Select-
Problem 10-3A Indicate effect of stock dividends and stock splits (LO10-6) Skip to question [The following information applies to the questions displayed below.] Sammy’s Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Problem 10-3A Part 2 2. The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors. True or False
ADC 1) Based on End-of-Chapter Problem 6 in Chapter 5 The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end- of-year price depend on the state of the economy by the end of the year as follows: Stock Price Dividend. $2.00 $50 1.00 43 0.50 34 a. Calculate the expected holding-period return and standard deviation of the holding- period return. All three scenarios are equally likely. Boom Normal economy Recession b. Calculate the expected return and standard deviation of a portfolio invested half in Business Adventures and half in Treasury bills. The return on bills is 4%.
Corporation Dividend Examples - Situation 1: Assume a company has 100,000 shares of common stock with a $1 par value outstanding when it declares a 2 for 1 stock split. After the split, how many shares are outstanding and what is the par value? Situation 2: Assume a company has 100,000 shares of common stock with a $1 par value outstanding when it declares a 1 for 4 reverse stock split. After the split, how many shares are outstanding and what is the par value? Situation 3: Assume that the Board of Directors of ABC Corporation meets on April 1 and declares a dividend of $500,000 payable on June 1 to stockholders of record on May 1. ABC Company currently has 100,000 shares of common stock and 20,000 shares of $100 par, 8% preferred stock outstanding. What happens on each date and how large is the dividend for each class of stock? Situation 4: Now assume dividends are 2 years in arrears for the information listed above. What is the dividend for common stockholders?
Consider the following data: Amount ($)Common stock ($1 par value) - 400,000Capital surplus - 900,000Retained earnings 5,000,000TOTAL OWNERS’ EQUITY 6,300,000 Current market price of shares = $51 per share. What will be the effect of a 10% stock dividend on the equity accounts? Supply the revised figures for all line items after the dividend. *Show manual workings. No Excel. You can type calculator inputs and outputs.
The Athletic Village has done very well the past year, and its stock price is now trading at $88 per share. Management is considering either a 100% stock dividend or a 2-for-1 stock split. Required: Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 3 decimal places.) Common stock, $0.01 par value Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Shares outstanding Par value per share Share price a Before $ $ 10 27,990 28,000 15,300 $ 43,300 $ $ After 100% Stock Dividend 1,000 0.01 88 0 0 After 2-for-11 Stock Split $ 0 0
The Athletic Village has done very well the past year, and its stock price is now trading at $80 per share. Management is considering either a 100% stock dividend or a 2-for-1 stock split. Required: Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders’ equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 3 decimal places.) Before After 100% Stock Dividend After 2-for-1 Stock Split Common stock, $0.01 par value $12 Additional paid-in capital 23,990 Total paid-in capital 24,002 Retained earnings 14,900 Total stockholders' equity $38,902 Shares outstanding 1,200 Par value per share $0.01 Share price $80