Question
In: Finance
The market value balance sheet for Bobaflex Manufacturing is shown here. The company has declared a...
|
The market value balance sheet for Bobaflex Manufacturing is shown here. The company has declared a 25 percent stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). |
| Market Value Balance Sheet | ||||||
| Cash | $ | 99,000 | Debt | $ | 158,000 | |
| Fixed assets | 830,000 | Equity | 771,000 | |||
| Total | $ | 929,000 | Total | $ | 929,000 | |
| a. |
There are 34,000 shares of stock outstanding. What is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b. | What will the ex-dividend price be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Solutions
jeff jeffy answered 2 years agoRelated Solutions
The balance sheet for the Chrome Corp. is shown here in market value terms. There are...
The balance sheet for the Chrome Corp. is shown here in market
value terms. There are 9,300 shares of stock outstanding.
The balance sheet for the Chrome Corp. is shown here in market
value terms. There are 9,300 shares of stock outstanding.
Market Value Balance Sheet
Cash
$29,500
Equity
$133,920
Fixed Assets
$104,420
Total
$133,920
Total
$133,920
The company has declared a dividend of $0.72 per share. The
stock goes ex-dividend tomorrow. Ignoring any tax effects, what is
the stock...
The balance sheet for Fourth Corp. is shown here in market value terms. There are 5,000...
The balance sheet for Fourth Corp. is shown here in market value
terms. There are 5,000 shares of stock outstanding. Market Value
Balance Sheet Cash $ 44,300 Equity $ 414,300 Fixed assets 370,000
Total $ 414,300 Total $ 414,300 The company has declared a dividend
of $2.00 per share. The stock goes ex-dividend tomorrow. Ignoring
any tax effects, what is the stock selling for today? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)...
The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are...
The balance sheet for Sinking Ship Corp. is shown here in market
value terms. There are 6,000 shares of stock outstanding.
Market Value Balance Sheet
Cash
$
44,900
Equity
$
474,900
Fixed assets
430,000
Total
$
474,900
Total
$
474,900
The company has declared a dividend of $1.80 per share. The
stock goes ex dividend tomorrow.
Ignoring any tax effects, what is the stock selling for
today?
Ignoring any tax effects, what will it sell for tomorrow?
Ignoring...
The balance sheet for Pie Crust, Inc., is shown here in market value terms. There are...
The balance sheet for Pie Crust, Inc., is shown here in market
value terms. There are 15,000 shares of stock outstanding.
Market Value Balance Sheet
Cash
$140,000
Fixed assets
470,000
Equity
$610,000
Total
$610,000
Total
$610,000
In lieu of a dividend of $1.20, the company has announced it is
going to repurchase $18,000 worth of stock instead of paying a
dividend.
Requirement 1:
What effect will this transaction have on the
equity of the firm? (Do not round
intermediate calculations....
The balance sheet for Tempest, Inc., is shown here in market value terms. There are 26,000...
The balance sheet for Tempest, Inc., is shown here in market
value terms. There are 26,000 shares of stock outstanding.
Market Value Balance Sheet
Cash
$
111,000
Fixed assets
484,920
Equity
$
595,920
Total
$
595,920
Total
$
595,920
The compay has announced it is going to repurchase
$33,800 worth of stock instead of paying a dividend of $1.30.
a.
What effect will this transaction have on the equity of the
firm? (Input the answer as positive value. Do...
The balance sheet for Tempest, Inc., is shown here in market value terms. There are 26,000...
The balance sheet for Tempest, Inc., is shown here in market
value terms. There are 26,000 shares of stock outstanding.
Market Value Balance Sheet
Cash
$
156,000
Fixed assets
514,800
Equity
$
670,800
Total
$
670,800
Total
$
670,800
The compay has announced it is going to repurchase
$26,000 worth of stock instead of paying a dividend of $1.00.
a.
What effect will this transaction have on the equity of the
firm? (Input the answer as positive value. Do...
Here are book- and market-value balance sheets of the United Frypan Company: Book-Value Balance Sheet Net...
Here are book- and market-value balance sheets of the United
Frypan Company:
Book-Value Balance Sheet
Net working capital
$
35
Debt
$
40
Long-term assets
65
Equity
60
$
100
$
100
Market-Value Balance Sheet
Net working capital
$
35
Debt
$
40
Long-term assets
190
Equity
185
$
225
$
225
Assume that MM’s theory holds except for taxes. There is no
growth, and the $40 of debt is expected to be permanent. Assume a
37% corporate tax rate....
Here are book and market-value balance sheets of the United Frypan Company: Book-Value Balance Sheet Net...
Here are book and market-value balance sheets of the United
Frypan Company:
Book-Value Balance Sheet
Net working capital
$
70
Debt
$
60
Long-term assets
30
Equity
40
$
100
$
100
Market-Value Balance Sheet
Net working capital
$
70
Debt
$
60
Long-term assets
150
Equity
160
$
220
$
220
Assume that MM’s theory holds except for taxes. There is no
growth, and the $60 of debt is expected to be permanent. Assume a
36% corporate tax rate....
Balance Sheet Preparation The December 31, 2016, balance sheet accounts of Hitt Company are shown here...
Balance Sheet Preparation
The December 31, 2016, balance sheet accounts of Hitt Company
are shown here in alphabetical order:
Accounts Payable
$20,800
Equipment
$72,400
Accounts Receivable
21,000
Inventory
37,200
Accumulated Depreciation: Buildings
53,000
Land
30,000
Accumulated Depreciation: Equipment
35,100
Marketable Securities (short-term)
6,100
Additional Paid-in Capital on Common Stock
24,000
Patents (net)
9,500
Additional Paid-in Capital on Preferred Stock
11,500
Preferred Stock, $100 par
21,000
Allowance for Doubtful Accounts
800
Retained Earnings
53,740
Bonds Payable (due 2024)
77,000
Revenues
107,000...
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...
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