Question
In: Finance
The stockholders' equity portion of Brimstone Tire Company follows: Common Stock (2 million shares at $10...
The stockholders' equity portion of Brimstone Tire Company follows:
|
Common Stock (2 million shares at
$10 par) |
$ 20,000,000 $ 33,00,000 |
The current market value of Brimstone's stock is $25. Show what the balance sheet will look like if Brimstone declares a 5% stock dividend.
Solutions
Expert Solution
VALUE OF RESERVES HAS 1 ZERO LESS. I HAVE TAKEN IT AS
33,000,000 OTHERWISE TOTAL WILL NOT TALLY. THANK
YOU
jeff jeffy answered 1 year agoRelated Solutions
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10...
On October 10, the stockholders’ equity of Sherman Systems
appears as follows.
Common stock–$10 par value, 76,000 shares
authorized, issued, and outstanding$760,000
Paid-in capital in excess of par value, common stock 236,000
Retained earnings 896,000
Total stockholders’ equity$1,892,000
1. Prepare journal entries to record the following transactions for
Sherman Systems.
Purchased 5,400 shares of its own common stock at $29 per share
on October 11.
Sold 1,100 treasury shares on November 1 for $35 cash per
share.
Sold...
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par...
On October 10, the stockholders’ equity of Sherman Systems
appears as follows.
Common stock–$10 par
value, 81,000 shares
authorized, issued, and outstanding
$
810,000
Paid-in capital in excess of par
value, common stock
261,000
Retained earnings
936,000
Total stockholders’ equity
$
2,007,000
1. Prepare journal entries to record the following
transactions for Sherman Systems.
a. Purchased 5,900 shares of its own common stock at $34 per
share on October 11.
b. Sold 1,225 treasury shares on November 1 for...
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par...
On October 10, the stockholders’ equity of Sherman Systems
appears as follows.
Common stock–$10 par value, 87,000 shares
authorized, issued, and outstanding
$
870,000
Paid-in capital in excess of par value, common stock
291,000
Retained earnings
984,000
Total stockholders’ equity
$
2,145,000
1. Prepare journal entries to record the following
transactions for Sherman Systems.
Purchased 6,500 shares of its own common stock at $40 per share
on October 11.
Sold 1,375 treasury shares on November 1 for $46 cash...
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value,...
On October 10, the stockholders’ equity of Sherman Systems
appears as follows. Common stock–$10 par value, 81,000 shares
authorized, issued, and outstanding $ 810,000 Paid-in capital in
excess of par value, common stock 261,000 Retained earnings 936,000
Total stockholders’ equity $ 2,007,000 1. Prepare journal entries
to record the following transactions for Sherman Systems. Purchased
5,900 shares of its own common stock at $34 per share on October
11. Sold 1,225 treasury shares on November 1 for $40 cash per...
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value,...
On October 10, the stockholders’ equity of Sherman Systems
appears as follows. Common stock–$10 par value, 93,000 shares
authorized, issued, and outstanding $ 930,000 Paid-in capital in
excess of par value, common stock 321,000 Retained earnings
1,032,000 Total stockholders’ equity $ 2,283,000 1. Prepare journal
entries to record the following transactions for Sherman Systems.
Purchased 7,100 shares of its own common stock at $46 per share on
October 11. Sold 1,525 treasury shares on November 1 for $52 cash
per...
P14–4Dividend constraints The Howe Company’s stockholders’ equity account follows: Common stock (400,000 shares at $4 par)...
P14–4Dividend constraints The Howe Company’s
stockholders’ equity account follows:
Common stock (400,000 shares at $4 par)
$1,600,000
Paid-in capital in excess of par
$1,000,000
Retained earnings
$1,900,000
Total stockholders’ equity
$4,500,000
The earnings available for common stockholders from this
period’s operations are $100,000, which have been included as part
of the $1.9 million retained earnings.
What is the maximum dividend per share that the firm can pay?
(Assume that legal capital includes all paid-in capital.)
If the firm has $160,000...
Stockholders' equity of Ziyech Corporation is as follows: Common stock, $20 par; issued and outstanding 90,000...
Stockholders' equity of Ziyech Corporation is as follows:
Common stock, $20 par; issued and outstanding 90,000 shares:
$1,800,000
Paid-in capital – excess of par: $900,000
Retained earnings: $760,000
The current market price of Ziyech’s stock is $37 per share. If
Ziyech declares and distributes a 20% stock dividend, paid-in
capital – excess of par balance will be:
Multiple Choice
$1,566,000
$1,206,000
$1,260,000
$900,000
Carington Corp. has outstanding 10 million shares of $2 par value common stock and 1 million...
Carington Corp. has outstanding 10 million shares of $2 par
value common stock and 1 million shares of 7% $4 par value
preferred stock. The company declares total dividends amounting to
$50,000, $250,000, and $600,000 during 2017,2018, and 2019,
respectively. Calculate the amount of dividends to be distributed
to preferred and common shareholders under each of the two
following scenarios:
A) The preferred stock is noncumulative
B) The preferred sock is cumulative
Roman Company had the following stockholders’ equity as of January 1, 2010. Common Stock, $2 par...
Roman Company had the following stockholders’ equity as of
January 1, 2010.
Common Stock, $2 par value, 50,000 shares
issued
$100,000
Paid-in capital in excess of
par
$300,000
Paid-in capital Treasury
Stock
$ 1,000
Retained
earnings
$319,000
Total stockholder’s equity
$720,000
During 2010, the following transactions occurred:
Jan 31 Roman issued
5,000 shares of common stock at $10 per share.
Feb 25 Roman repurchased
1,900 shares of treasury stock at a price of $18 per share.
Mar 2 1,200...
Testing Company, Inc. has the following combination of Debt and Equity: Common Stock: 15.5 million shares...
Testing Company, Inc. has the following combination of Debt and
Equity:
Common Stock:
15.5 million shares outstanding
Par value of $5/share
Book value of $20/share
Current price on the market of $65.25
Current Beta per a reliable source 1.13
Debt:
Maturity value of $500,000,000
Current price on the market of 97.3
Coupon rate if 4%
Semiannual payments
10 years until maturity
Other information:
Treasury bill rates — 2.45%
Market premium on this type of stock — 7.1%
Tax rate —...
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