Differentiate the effect on EPS of the sale of new shares, a stock dividend or stock split, and the reacquisition of shares.

Q: Compute the value of a share of Fellows Company stock using the price-earnings multiples method

A: Value of share by Price earnings ratio = P/E ratio * Earnings per share

Q: A company’s own stock that it has issued and repurchased is called outstanding stock. dividend…

A: The correct answer is Option (d).

Q: A company’s own stock that it has issued and repurchased is called a. outstanding stock. b. dividend…

A: a) Outstanding stock is the stock issued by company and owned bu outside shareholders other than the…

Q: Describe the accounting entry for a stock dividend, if any.Describe the accounting entry for a stock…

A: Stock dividend declaration has two type. Declaration of stock dividend more than 30% represents…

Q: Identify whether stockholders’ equity would increase (I), decrease (D), or have no effect (NE) as a…

A: Calculation of any changes to stockholder's equity:

Q: Compute the added number of shares to be issued

A: Purchase Consideration can be in the form of Assets like cash or stock or in the form of Equity.

Q: How many shares are ISSUED after the above transactions are completed? How many shares are…

A: The Issued shares are those which are issued to the public in large and the outstanding shares are…

Q: Mandatorily redeemable preferred stock (preference shares) is reported among liabilities and their…

A: International Financial Reporting Standards:They are commonly known as IFRS. It is a set of…

Q: Treasury stock is a contra-shareholders' equity account and it shows the total dollar amount a…

A: Treasury stock denotes the shares the company keep on his own treasure after buy back or repurchase.…

Q: Define stock dividend.

A:

Q: he par value of a share of common stock…… Select one: a. is stated in the charter. b. is determined…

A: The par value is the face value of the shares issued to the shareholders.

Q: Discuss the similarities in dividends, share repurchases, and stock splits/stock dividends.

A: Stock Dividend: Dividend payments to shareholders provided in the form of stock rather than cash are…

Q: Describe the two components of the proceeds used in the treasury stock method and howrestricted…

A: The term treasury stock method is basically used when the outstanding number of shares are created…

Q: Explain how Stock Splits Effected in the Form of Stock Dividends.

A:

Q: Stockholders are eligible for a dividend if they own the stock on the date ofa. declaration.b.…

A: correct option is B. Record Stockholders are eligible for a dividend if they own the stock on the…

Q: Distinguish between a stock split and a stock dividend. Isthere any reason for the difference in…

A: Stock splits: Stock split is the increase in number of shares due to splitting or decreasing par…

Q: What is the difference between a stock split and a stock split effected in the form of a stock…

A: Stock split: It is the way of reducing the value of a share by split one share into multiple shares.…

Q: What is a stock dividend?  How does a common stock dividend distributed to common stockholders…

A: When dividend is issued to stockholders in form of stock instead of cash then it is called as Stock…

Q: Explain how convertible securities are determined to bepotentially dilutive common shares and how…

A:

Q: What happens to the par value, the share’s trading price, and the number of shares outstanding in a…

A: If stock is split in a 2-for-1, there were following changes: Par value: The par value of share gets…

Q: How do you calculate outstanding shares of stock?

A: Outstanding stock refers to the number of shares that are held by the existing stockholders of the…

Q: Explain the accounting for issuance of par value shares and no-par value shares.

A: The base cost at which a class of shares or stocks can be exchanged on the underlying contribution…

Q: Define Stock Dividends and Stock Splits.

A: Dividend: Dividend is the return on stock investment earned by the shareholders of a firm.

Q: Explain the significance of CALLS to the business that issued shares?

A: Shares are the units of the total stock of a company which shows the fractional ownership of the…

Q: Which of the following affects the total Shareholders’ Equity? Appropriation of retained earnings…

A: Appropriation of retained earnings: The appropriation of retained earnings means to allocate the…

Q: The journal entry to record the declaration of a stock dividend includes Oa credit to Stock…

A: Answer -  As a Stock Dividend represent an increase in common stock without any receipt of cash it…

Q: Share capitalization referes to the issue of shares to new shareholders in lieu of dividend. OA.…

A: Capitalization in accounting means including the costs to the values of assets or liabilities…

Q: Stock splits and stock dividends may be used by a corporation to change the number of shares of its…

A: Definition:   Stock split: It is a method of increasing the total number of outstanding shares…

Q: Prepare the stockholders' equity section after the stock dividend is distributed. (assume no other…

A: Share capital is an important source of finance for the business. Two type of shares that are being…

Q: Describe the corporate form and the issuance of shares of stock.

A: Describe a corporation form of business.   A corporation is a form of business where the business is…

Q: Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is…

A:

Q: Differentiate between the stock dividend and stock split and their effects on the stock prices.

A: Stock Dividend: It is a form of equity dividend paid to the shareholders by the company. Stock…

Q: How does declaring a stock dividend affect the corporation’s assets, liabilities, and total equity?…

A: Stock dividends:   Stock dividends are dividends paid in the form of additional stock rather than in…

Q: Write down the reasons for stock dividend.

A: Dividends: This is the amount of cash distributed to stockholders by a company out its earnings,…

Q: As of the date of the financial statements, the number of common shares issued will exceed the…

A: Treasury stocks are repurchased shares of the company. The firm has the power to reissue these…

Q: If a company’s outstanding shares are increased through a stock dividend or a stock split, how would…

A: EPS represents Earnings per share.  Formula to calculate EPS = (Net income - Preferred dividend) /…

Q: When is the equity method used when purchasing another company's stock? How is it recorded?

A: Companies with huge cash balance tend to purchase another company's stock to excercise significant…

Q: Discuss the impact of issuance of share dividends to the existing shareholders. Knowledge)

A: A stockholder is a person who owns stock in a company. Stockholders own a portion of the company. If…

Q: value a share of common stock.

A: Common stock is the ordinary shares issued by the company. It shows the equity that offers the share…

Q: Explain stock dividends and stock splits and how we account for them.

A: Stock dividends: Stock dividends involve the issuance of additional shares of stock to existing…

Q: What terminology best describes the EPS (earnings per share) formula below?  Net income available…

A: Earnings per share (EPS) represent the earnings earned for each share of the company. As per the…

Q: Distinguish between accounting for retired shares and for treasury shares.

A: Retire stock: Buy back of shares from the shareholders by paying cash and obtaining the status of…

Q: A stock split applies to all common shares including the?

A: The stock split is a method of decreasing the par value of the stock by increasing the number of…

Q: Describe the usual nature of the following features as theyapply to a share of preferred stock: (a)…

A: The company can increase the capital by issuing the shares, bonds, debentures, etc., These are…