Foundations Of Finance
10th Edition
ISBN: 9780134897264
Author: KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher: Pearson,
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Chapter 13, Problem 14SP
a)
Summary Introduction
To determine: The financial statement by assuming that a 15% stock dividend is issued.
b)
Summary Introduction
To determine: The financial statement by assuming that a 2-for-1 stock split is declared.
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market value of the stock was $27 per share.
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b. Show the effects of the stock dividend on the financial statements using a horizontal statements model.
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market value of the stock was $30 per share.
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b. Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column,
indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected
by the event, leave the cell blank.
Complete this question by entering your answers in the tabs below.
Required A Required B
Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating
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minus sign.)…
Chapter 13 Solutions
Foundations Of Finance
Ch. 13 - What is meant by the term dividend payout ratio?Ch. 13 - Prob. 2RQCh. 13 - Prob. 3RQCh. 13 - Prob. 4RQCh. 13 - Prob. 5RQCh. 13 - Prob. 6RQCh. 13 - Prob. 7RQCh. 13 - Prob. 8RQCh. 13 - Prob. 9RQCh. 13 - Prob. 10RQ
Ch. 13 - Prob. 1SPCh. 13 - (Dividend policy and the issue of new shares of...Ch. 13 - Prob. 3SPCh. 13 - (Dividend policy and stock prices) The issue as to...Ch. 13 - (Residual dividend policy) FarmCo, Inc. follows a...Ch. 13 - (Legal restrictions on dividend payments) Describe...Ch. 13 - (Practical considerations in setting dividend...Ch. 13 - Prob. 8SPCh. 13 - Prob. 9SPCh. 13 - Prob. 10SPCh. 13 - Prob. 11SPCh. 13 - Prob. 12SPCh. 13 - Prob. 13SPCh. 13 - Prob. 14SPCh. 13 - Prob. 15SPCh. 13 - Prob. 16SPCh. 13 - Prob. 1.1MCCh. 13 - The executive vice-president in charge of finance...Ch. 13 - Prob. 2.1MCCh. 13 - Prob. 2.2MCCh. 13 - Prob. 2.3MC
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- The table below shows the market performance for a share of common stock in a multi-national corporation. Date Price Dividends Paid January 24, 2005 P60.00 P5.00 January 24, 2006 63.00 5.50 January 24, 2007 67.00 6.05 January 24, 2008 74.00 7.49 a) If an investor purchased shares on January 24, 2005, determine the rate of return realized for a two year holding period. (Ans. 15%) b) the holding period is until January 24, 2008. (Ans. 17%)arrow_forwardA company declares a 5% stock dividend. The debit to Retained Earnings is anamount equal toa. the market value of the shares to be issued.b. the par value of the shares to be issued.c. the book value of the shares to be issued.d. the excess of the market price over the original issue price of the shares to be issued.arrow_forwardThe balance sheet caption for common stock is the following: Common stock, $2 par value, 2,070,000 shares authorized, 1,310, 000 shares issued, 1,050,000 shares outstanding $? Required: a. Calculate the dollar amount that will be presented opposite this caption. b. Calculate the total amount of a cash dividend of $0.27 per share. c. What accounts for the difference between issued shares and outstanding shares? a. Amount b. Cash dividend c. Difference between issued shares and outstanding sharesarrow_forward
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- The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 2, is as follows. Note: The market value per share of the common stock is $38, and the market value per share of the preferred stock is $18. Required What is the par value per share of the preferred stock? What is the dividend per share on the preferred stock? What is the number of common stock shares outstanding? What was the average issue price per share (price for which the stock was issued) of the common stock? If Mann Equipment Company declared a 2-for-1 stock split on the common stock, how many shares would be outstanding after the split? What amount would be transferred from the Retained Earnings account because of the stock split? Theoretically, what would be the market price of the common stock immediately after the stock split? Stockholders’ Equity Paid-in capital Preferred stock, ? par value, 5% cumulative, 160,000 shares…arrow_forwardThe following information is for questions 12 and 13. The Liang Company's balance sheet has the following capital section. Liang's stock is currently selling for $5 per share. Common Stock (50,000 shares at $1 par) Capital in Excess of Par Retained Earnings $50,000 50,000 100,000 $200,000 Liang plans to declare a 2 for 1 stock split. Show the relevant section of the Balance sheet after this. 12. Common Stock (100,000) shares at $ 0.50 par) Capital in Excess of Par Retained Earnings $ 50,000 50,000 100,000 $ 200,000 (fill in all 5 lines.) Total If Liang declared a 10% stock dividend instead of doing the stock split, what would the relevant section of the balance sheet look like? 13. Common Stock (__ ) shares at $ par) Capital in Excess of Par Retained Earnings 2$ (fill in all 5 lines.) Totalarrow_forwardWhich of the following statements are true regarding dividends? Which of the following statements are true regarding dividends? check all that apply A large stock dividend is a distribution of more than 25% of previously outstanding shares. A stock split can be used to keep the stock price affordable. A small stock dividend is a distribution of 50% or less of previously outstanding shares. The date of payment reflects the date a cash dividend is paid to stockholders.arrow_forward
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