Question
In: Finance
The shareholders’ equity account for Kowloonia Trust is shown here: Common Stocks (1,000 shares outstanding) $600,000...
The shareholders’ equity account for Kowloonia Trust is shown here:
Common Stocks (1,000 shares outstanding) $600,000
Retained Earning $790,000
Total $1,390,000
a) If Kowloonia declares a three-for-one stock split, how many shares will be outstanding? Show how the equity accounts will change.
b) If Kowloonia declares a one-for-four reverse stock split, how many shares will be outstanding? Show how the equity accounts will change.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
An all-equity company has common and preferred shares. There are 250,000 common shares outstanding with a...
An all-equity company has common and preferred shares. There are
250,000 common shares outstanding with a price of $31.30 per share
and with an expectation to continue to provide a dividend of $4.75
per share. There are 50,000 preferred shares outstanding, with a
3.10% dividend, $100 par value per share, and $61.80 market value
per share. Given this information, what is the company's WACC?
a) 13.53 %
b) 12.91%
c) 13.22 %
d) 12.61 %
e)12.30 %
Bluefield Corporation has 6 million shares of common stock outstanding, 600,000 shares of preferred stock that...
Bluefield Corporation has 6 million shares of common stock
outstanding, 600,000 shares of preferred stock that pays an annual
dividend of $8, and 200,000 bonds with a 10 percent coupon
(semiannual interest) and 20 years to maturity. At present, the
common stock is selling for $50 per share, the bonds are selling
for $950.62 per $1,000 of face value, and the preferred stock is
selling at $74 per share.
The estimated required rate of return on the market is 13...
Randy Company has 600,000 shares of common stock outstanding. Each share of common stock has a...
Randy Company has 600,000 shares of common stock outstanding.
Each share of common stock has a par value of $10. Please prepare
journal entries to record the following INDEPENDENT
transactions:
1. Randy’s directors declare a 10% stock dividend on September
1, 2019. On that date, the stock is trading on the market at $30
per share.
2. Randy purchases 1,000 of its outstanding shares on January
10, 2019 for $20 per share.
3. On April 1, 2019, Randy reissues 2,000...
Randy Company has 600,000 shares of common stock outstanding. Each share of common stock has a...
Randy Company has 600,000 shares of common stock outstanding.
Each share of common stock has a par value of $10. Please prepare
journal entries to record the following INDEPENDENT
transactions:
1. Randy’s directors declare a 10% stock dividend on September
1, 2019. On that date, the stock is trading on the market at $30
per share.
2. Randy purchases 1,000 of its outstanding shares on January
10, 2019 for $20 per share.
3. On April 1, 2019, Randy reissues 2,000...
Prudential Transportation has 600,000 shares of common stock outstanding at a market price of $25 a...
Prudential Transportation has 600,000 shares of common stock
outstanding at a market price of $25 a share. Last month,
Prudential Transportation paid an annual dividend in the amount of
$1.00 per share. The dividend growth rate is 5%. Prudential
Transportation also has 21,000 bonds outstanding with a face value
of $1,000 per bond. The bonds carry a 5% coupon, pay interest
annually, and mature in 10 years. The bonds are selling at 104% of
face value. The company's tax rate...
At the beginning of 2016, Copper Company had the shareholders’ equity as shown below: Common stock...
At the beginning of 2016, Copper Company had the shareholders’
equity as shown below:
Common stock $5
par
$35,000
Additional Paid in Capital
$49,000
Retained
Earnings
$63,000
During 2017, the following events and transactions occurred.
Copper had sales revenue of $108,000. It incurred Cost of Goods
Sold of $62,000 and Operating Expenses of $12,000.
Copper issued 1,000 shares of its $5 par common stock for $14
per share.
Copper invested $30,000 in Available-for-Sale securities. At the
end of the year,...
Record the journal entries for the following facts. 1,000 shares of common stock outstanding. 600 shares...
Record the journal entries for the following facts.
1,000 shares of common stock outstanding.
600 shares of cumulative preferred stock, dividend $3
The cumulative preferred stock has been outstanding for 20
years.
Paid dividends two years ago.
Paid no dividends last year.
The board of directors declared $5,000 of dividends for the
current year
Paid the dividends ten days after they were declared.
The company with the common equity accounts shown here hasdecided on a two-for-one stock split....
The company with the common equity accounts shown here has
decided on a two-for-one stock split. The firm’s 67-cent-per-share
cash dividend on the new (postsplit) shares represents an increase
of 10 percent over last year’s dividend on the presplit stock.Common stock ($1 par value) $ 225,000Capital surplus 1,070,000Retained earnings 2,543,000Total owners’ equity $ 3,838,000a. What is the new par value of the stock? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)b. What was...
The company with the common equity accounts shown here has declared a stock dividend of 20...
The company with the common equity accounts shown here has
declared a stock dividend of 20 percent at a time when the market
value of its stock is $30 per share.
Common stock ($1 par value)
$
460,000
Capital surplus
861,000
Retained earnings
3,870,800
Total owners' equity
$
5,191,800
What would be the number of shares outstanding, after the
distribution of the stock dividend? (Do not round
intermediate calculations.)
New shares outstanding
What would the equity accounts be...
The company with the common equity accounts shown here has declared a stock dividend of 15...
The company with the common equity accounts shown here has
declared a stock dividend of 15 percent at a time when the market
value of its stock is $41 per share.
Common stock ($1
par value)
$
395,000
Capital
surplus
848,000
Retained
earnings
3,740,800
Total owners'
equity
$
4,983,800
What would be the number of shares outstanding, after the
distribution of the stock dividend? (Do not round
intermediate calculations.)
New shares outstanding
{C} {C}{C}
What would the equity...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Select all that is /are true about the financial markets. A.financial markets bring together the buyers...
- QUESTION 3 Discuss the major issues in teaching and supervising students in counseling practice. (20 Marks)Explain...
- As a portfolio manager, you have a portfolio with one liability of a single payment 5...
- Below is a table displaying the number of employees (x) and the profits per employee (y)...
- Most people like the color blue; it is the favorite color of many people. Do we...
- 2.) Discuss in detail why masks are relatively ineffective as a means of preventing infection by...
- Which of the following statements is CORRECT? a. Sole proprietorships are subject to more regulations than...
ADVERTISEMENT