ABC distributes a 20% stock dividend. Before distributing the stock dividend, ABC had 20 million shares. How many outstanding shares does the firm have after it makes the stock dividend distribution?
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- Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).Hi, If a company has 32,000 common stock shares outstanding $10 par value, then purchases 2,300 shares of treasury stock at $25 per share. How would this be jouralized? Also, after those transaction the same company declared a $0.10 per share cash dividend on the common stock outstanding. How would this be jouralized?Bob's Stuff, Inc has preferred stock with a stated dividend of $2.04, which currently trading at $27.40 per share, and Bob believes that the company can issue additional shares at that price net. What is Bob's cost of preferred stock?
- OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5 thousand bonds. If the common shares sell for $17 per share, the preferred shares sell for $126 per share, and the bonds sell for 117 percent of par ($1,000), what weight should you use for preferred stock in the computation of OMG's WACC?Mann Co. has outstanding 60,000 shares of 8% preferred stock with a P10 par value and 150,000 shares of P3 par value common stock. Dividends have been paid every year except last year and the current year. If the preferred stock is cumulative and nonparticipating and P300,000 is distributed, the common stockholders will receive?Beldon, Inc., has outstanding 10,000 shares of $50 par value, 7% nonparticipating, cumulative preferred stock and 10,000 shares of $10 par value common stock. If the dividend on preferred stock is one year in arrears, and the total cash dividend declared this year is $72,000, then the total amounts distributed to preferred and common stockholders, respectively, are: Select one: a. $21,000 and $51,000 b. $70,000 and $2,000 c. $27,000 and $45,000 d. $60,000 and $12,000 e. None of the above
- Your corporation currently has 200,000 shares of stock outstanding that sells for $50.00 per share. What will be the amount of shares outstanding and the share price after the stock dividend. Please show your calculations in the space provided.Your corporation has declared a 10% stock dividend.Fido Corporation has common and 5% preferred stock outstanding as follows: Preferred stock: 20,000 shares, $30 par value Common stock: 60,000 shares, at $50 par value The company declares a total dividend of $100,000. If the dividends on preferred stock are TWO years in arrears (in addition to the current year), how will the total dividend be divided between the common and preferred stock? a) Preferred stock dividends: b) Common stock dividends:National Company has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the announcement, the firm's shares were trading at P60.00 per share. After the stock dividend, the firm's shares should trade at ________ per share.
- Gary corporation has a price to book ratio of 1.2 and have 100,000 shares outstanding. Consider the following information( in Thousands)( in attached image). a)Calculate the stock price using the price to book ratio. b) If their stock price is listed on the stock market at $23 , should stock holder sell or hold the stock?Belmont, Inc., has outstanding 10,000 shares of $200 par value, 7% nonparticipating, cumulative preferred stock and 10,000 shares of $40 par value common stock.If the dividend on preferred stock is one year in arrears, and the total cash dividend declared this year is $288,000, then the total amounts distributed to preferred and common stockholders, respectively, are:The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $35 per share. What effects on the equity accounts will the distribution of the stock dividend have? Common stock ($1 par value) $ 406,000Capital surplus 1,340,000Retained earnings 3,427,000Total owners’ equity $5,173,000