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- Research walmart and Review its most recent 10-K report and announcement of quarterly or annual dividends per share, an announcement of a stock split of one to two and the purchase of treasury stock. Choose ONE of the questions below to discuss: Discuss the primary reporting alternatives the company has for the repurchase of its own shares and how each option would affect total shareholders’ equity. How would the stock split of one for two be accounted for and how would it affect shareholder’s equity and why? How would the company account for the cash dividends from declaration to the date of payment? What are the important dates for dividends payment and how would it affect the balance sheet and why? Work to demonstrate your understanding of the material from this module and, where necessary, include your sources.please help me asappp.... Consider the case of Tobotics Inc.: Tobotics Inc. currently has 20,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of two for one as described in the animation. If Tobotics Inc. declares a two-for-one stock split, what will be the price of the company’s stock after the split, assuming that the total value of the firm’s stock remains the same after the split? ______ Scorecard Corp. is one of Tobotics Inc.’s leading competitors. Scorecard Corp.’s market intelligence research team shares Tobotics Inc.’s plans of announcing a stock split, influencing the distribution policymakers. Consequently, executives at Scorecard Corp. decide to offer stock dividends to their shareholders. A stock dividend is another way of keeping the stock price from going too high. Scorecard Corp. currently has 1,100,000 shares of common stock outstanding.…Mid-State BankCorp recently declared a 7-for-2 stock split. Prior to the split, the stock sold for $100 per share. If the firm's total market value is unchanged by the split, what will be the stock price following the split?
- A company is undertaking a 2-for-1 stock split. Which of the following is most likely to be true? (choose the single best response) Group of answer choices Shareholder value will double after the split. Before the split, the price range of the stock was around $25 per share. The company is Berkshire-Hathaway. The shares will be converted to bonds. Before the split, the price range of the stock was around $200 per share.Mid-State BankCorp recently declared a 7-for-2 stock split. Prior to the split, the stock sold for $100 per share. If the firm's total market value is unchanged by the split, what will the stock price be following the split? Select one: a. $28.57 b. $25.43 c. $26.29 d. $28.86 e. $35.71The common stock of Alexander Hamilton Inc. is currently selling at $120 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $70 per share. Nine million shares are issued and outstanding. Instructions Prepare the necessary journal entries assuming the following. a. The board votes a 2-for-1 stock split. b. The board votes a 100% stock dividend. c. Briefly discuss the accounting and securities market differences between these two methods of increasing the number of shares outstanding.
- Calculate stock and bond valuations for PepsiCo. Specifically, the following critical elements must be addressed: Stock Valuation Based on the figures provided from the financial information you prepared for your selected company, calculate each of the following in Part I of the spreadsheet tab: Stock and Bond Valuation: Fill in the yellow highlighted cells with the matching data prepared for your selected company. Identify the new dividend yields if the company increased its dividend per share by $1.75. Identify the dividend yield if the firm doubled its outstanding shares using a stock split. Note that other numbers will be affected by a stock split such as new stock price, actual dividends paid, and number of outstanding shares. Stockholders' equity will not change. Calculate the rate of return on investment based on the data you calculated in Question 1. What effect would each of the calculations you performed have on shareholder value? In other words, suppose the company's…Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases. Consider the following case: Tolbotics Inc. currently has 15,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of 4 for 1 as described in the animation. If Tolbotics Inc. declares a 4-for-1 stock split, the price of the company’s stock after the split, assuming that the total value of the firm’s stock remains the same after the split, will be ________ Fuzzy Muffin Manufacturing Company is one of Tolbotics’s leading competitors. Fuzzy Muffin’s market intelligence research team shares Tolbotics’s plans of announcing a stock split, influencing the distribution policymakers. Consequently, executives at Fuzzy Muffin decide to offer stock dividends to its shareholders. Fuzzy Muffin currently has 1,900,000 shares of common stock…SoFi Technologies Inc. (SOFI) currently has 13 million shares of common stock outstanding and is selling for $215 a share. The company is planning to conduct a 5-for-1 stock split. If SOFI declares a 5-for-1 stock split, what will the price of the company’s stock be after the split—assuming that the total value of the firm’s stock remains the same before and after the split? How many shares of SOFI will be outstanding? Now imagine of instead of performing a stock split, SOFI decides to pay a stock dividend. If SOFI declares a 5.5% stock dividend, how many shares will the firm issue to existing shareholders? Now, in lieu of conducting a stock split or declaring a stock dividend, SOFI decides to buyback 1,500,000 shares of stock at market price. How much cash will it take to perform this buyback? Using the same information as Question #4, if SOFI performs the buyback, what should the new market share price be assuming the total value of the company hasn't changed? Round answer to…
- You are an investment adviser. One of your clients approaches you for your advice on investing inequity shares of Theta Company. You have collected the following data:Earnings per share last year $6.00Payout ratio 0.40Return on equity 0.30Cost of equity capital 0.20The company plans to increase the payout ratio to 60% from year 5.Required:i) Estimate the price of an equity share of this company using an appropriate dividenddiscount model and advise your client whether they should buy a share of the company.ii) Your client is keen to know whether there are any growth opportunities from theirinvestment. Explain to your client the meaning of this concept using appropriatecalculations.iii) If there are positive or negative growth opportunities, explain the reason for suchopportunities.a) “A stock repurchase carries information content”. What type ofinformation has been referred to in this statement? What impact islikely to have on the stock price of a firm?b) The Olive Vase has 56,000 shares of stock outstanding with a par valueof $1 per share and a market value of $11 a share. The company justannounced a 3-for-4 reverse stock split. Currently, you own 500 sharesof this stock. What is the total value of your stock? What will thetotal value of your shares be after the reverse stock split?PLEASE START FROM SECTION C INSTRUCTIONS: Answer the following questions, using spreadsheet financial functions to do the calculations. Use the following information about SV Inc. to calculate the company’s Cost of Capital. The stock of SV Inc. sells for $50, and last year’s dividend was $2.10. A flotation cost of 10% would be required to issue new common stock. SVs’ preferred stock pays a dividend of $3.30 per share, and new preferred could be sold at a price to net the company $30 per share. Security analysts are projecting that the common dividend will grow at a rate of 7% a year. The firm can issue additional long-term debt at an interest rate (or a before-tax cost) of 10%, and its marginal tax rate is 35%. The market risk premium is 6%, the risk-free rate is 6.5%, and Supreme Ventures’ beta is 0.83. In its cost-of-capital calculations, SV Inc. uses a target capital structure with 45% debt, 5% preferred stock, and 50% common equity. REQUIRED: SECTION A Calculate the…
