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Effect of Stock Split Gino's Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Midwest....

Effect of Stock Split

Gino's Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Midwest. Gino's Restaurant Corporation, which had 18,000 shares of common stock outstanding, declared a 3-for-1 stock split.

a. What will be the number of shares outstanding after the split?
shares

b. If the common stock had a market price of $144 per share before the stock split, what would be an approximate market price per share after the split?
$ per share

A corporation, which had 37,000 shares of common stock outstanding, declared a 3-for-1 stock split.

(a) What will be the number of shares outstanding after the split?
shares

(b) If the common stock had a market price of $123 per share before the stock split, what would be an approximate market price per share after the split?
$ per share

(c) Is a journal entry required for a stock split?

In: Accounting

It is desired to compare the after-tax economics of two mutually exclusive alternatives with the following...

It is desired to compare the after-tax economics of two mutually exclusive alternatives with the following before-tax data for a study period (planning horizon) of 4 years:

   Semiautomatic Machine                   Automatic Machine

First cost                                            $100,000                                       $150,000

Useful life                                              4 years                                             5 years

Market value at end of useful life             $0                                                     $0

Annual before-tax cash disbursements $50,000                                            $15,000

Annual cash revenues                           $110,000                                          $90,000

MARR (after tax) = 15% p.a.

Study Period = 4 years

Both alternatives are to be depreciated using straight-line depreciation over the life of the machine. It is assumed that the automatic machine can be sold at the book value after 4 years,

I.e. 20% of the first cost of the machine after 4 years of depreciation.

A 40% tax rate is assumed.

Which alternative is preferred on the basis of net present value?

Can i have a detailed answer, please! And also not in excel.

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