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Tree House Foods(THS), Inc. has the following shareholders’ equity account is as follows: SI No                    Item                                            Value 1                    Common stock (at par value)        $ 2,000,000 2                          Additional paid - in capital       1,600,000 3                     Retained earnings                         8,400,000 4                  shareholders’ equity                    $12,000,000 The current market price of the stock is $60 per share and par value of the share is $8.   A. At what price will THS, Inc. share will sell after the 20% stock dividend? i. In the absence of an informational or signalling effect, ii. If there were a signalling effec

Tree House Foods(THS), Inc. has the following shareholders’ equity account is as follows: SI No                    Item                                            Value 1                    Common stock (at par value)        $ 2,000,000 2                          Additional paid - in capital       1,600,000 3                     Retained earnings                         8,400,000 4                  shareholders’ equity                    $12,000,000 The current market price of the stock is $60 per share and par value of the share is $8.   A. At what price will THS, Inc. share will sell after the 20% stock dividend? i. In the absence of an informational or signalling effect, ii. If there were a signalling effec

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
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/ Tree House Foods(THS), Inc. has the following shareholders’ equity account is as follows:
SI No                    Item                                            Value
1                    Common stock (at par value)        $ 2,000,000
2                          Additional paid - in capital       1,600,000
3                     Retained earnings                         8,400,000
4                  shareholders’ equity                    $12,000,000
The current market price of the stock is $60 per share and par value of the share is $8.

 

A. At what price will THS, Inc. share will sell after the 20% stock dividend?
i. In the absence of an informational or signalling effect,
ii. If there were a signalling effect

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