Outstanding Shares Pearce & Company has 4 million shares of $4 par value common stock outstanding. The company believes that its current market price of $150 per share is too high and decides to execute a 4-for-1 forward stock split to lower the price. How many shares (in millions) will be outstanding following the stock split, and what will be the new par value per share? # of shares Par value million per share
Q: How can the use of passwords actually circumvent security? What actions can be taken to minimize…
A: A password is a combination of letters (eg. a, b, E, etc.), numbers (eg. 1,4,7, etc.) or symbols…
Q: Marketable securities 759,000 Accounts and notes receivable (net) 310,500 Inventories 643,500…
A: Working capital is the amount of capital needed for daily operations of the business. This is…
Q: Daley Company prepared the following aging of receivables analysis at December 31. Y Days Past Due…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: A man is paid on a salary-plus-commission basis. He receives $275 weekly in salary and a commission…
A: Given information Weekly salary = $275 Commission = 5% over Sales of $2020 Weekly sales = $7825
Q: Krespy Corp. has a cash balance of $7,500 before the following transactions occur: received…
A: Cash: The term "cash" refers to any kind of money or coin that is recognized by the government as…
Q: Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes…
A: As per our guidelines we are supposed to answer only 3 parts of the question only.
Q: for 2021 revealed the following information: Samsung Corp.’s reported a Trademark at P520,000 at…
A: Goodwill refers to the concept of evaluating the value of the company on the basis of its reputation…
Q: A company reports the following amounts at the end of the year: Total sales revenue = $560,000;…
A: Introduction: Net revenues: Deduction of sales returns , sales allowances , and sales discounts from…
Q: Barga Company's net sales for Year 1 and Year 2 are $665,000 and $749,000, respectively. Its…
A: Days sales uncollected is a liquidity ratio that is used to estimate the number of days before…
Q: Units 100 50 80 40 60 120 Cost Beginning inventory Purchase (April 3) Sale (April 10) Purchase…
A: LIFO method is the method of inventory valuation where the goods which are purchased lately are sold…
Q: Dallas Parsons, CPA, began an accounting practice and completed these transactions during September…
A: Effects of transactions on the accounting equation are shown based on the basic accounting equation…
Q: nalyze the following: I – When a component of an entity was discontinued during the year, the…
A: Lets understand the basics. When any component of an entity discontinued during the year, then it is…
Q: onal Inc. believes that at its current stock price of P15.00 the firm is undervalued in the market.…
A: Pre share market price of shares: It is the price of the the shares which is estimated to earn a…
Q: son Publications established the following standard price and costs for a hardcover picture book…
A: Flexible Budget : It is the type of budgets that can be adjusted according to its units produced and…
Q: Analyze the following: I – Cumulative preference dividends in arrears should be reported as a note…
A: Analysis of Statement 1 :— Cumulative preference dividends in arrears should be reported as a note…
Q: Accounts receivable arising from sales to customers amounted to $77000 and $76000 at the beginning…
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…
Q: ABC Company sells inventory to XYZ Company for $2,400. If XYZ purchases additional inventory it…
A: Discount on purchase :— It is an offer provided to purchaser to Purchase Goods in Less Price then…
Q: Question 1 .Panther Corporation decided to establish Snake Company as a wholly owned subsidiary by…
A: A journal is a detailed account that records all the financial transactions of a business, to be…
Q: A process manufacturer that uses the weighted-average method reports the following. Compute the…
A: Process costing is used in an organization where a similar kind of product is produced and goods are…
Q: ABC Company reported net income and retained earnings for a two – year period as follows:…
A: First of all, we have to calculate the adjusted Retained Earning balance on December 31, 2020.
Q: 53 ABC Company reported net income and retained earnings for a two – year period as follows:…
A: Working Capital Calculation of working capital is the difference between the total current assets…
Q: Briefly explain the meaning of the following companies’ concepts; • Authorised share capital •…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: A company is taking bids on four construction jobs. Three contractors have placed bids on the jobs.…
A: Job costing is a accounting method to account for those firms which perform various jobs in the same…
Q: The following note transactions occurred during the year for Towell Company: On Nov. 25, Towell…
A: Interest is an expense which is to be paid to the lender or creditor for making late payment for the…
Q: W&W Tax Service offers tax and consulting services to individuals and small businesses. Data for…
A: Whenever an organization equals their variable costs and total fixed costs with the total sales…
Q: Current assets: Cash $655,500 Marketable securities 759,000 Accounts and notes receivable (net)…
A: Lets understand the basics. Working capital is a capital required to run day to day business…
Q: You own 30,000 shares of National Corporation stock. The company is planning to issue a stock…
A: Calculation of Market value of shares owned after stock dividend Particulars Amount (P) Market…
Q: The interest earned in 6 years on Php 400,000 deposited in an account paying 9% interest, compounded…
A: Lets understand the basics. For answering this question, we need to check how much amount will be…
Q: Mr Required information PA8-4 (Algo) Accounting for Accounts and Notes Receivable Transactions [LO…
A: Answer-solution in this question step2.
Q: Ross Enterprises has a contract with Big Steel Company Limited in respect of Information Technology…
A: IRAC method: The framework of legal analysis known as "Issue, Rule, Application, and Conclusion" is…
Q: Proceed Company acquired of the common stock of Stop Company on January 1, year one, for On that…
A: Consolidation is a process wherein a company acquires another company, the former company is known…
Q: Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The…
A: For the growth of an organization or a company variance analysis plays an important role through the…
Q: Find the exact interest on a loan of $8,000 at 8% annually for 60 days. $ (Round to the nearest cent…
A: Interest Amount = Amount of Loan x Interest Rate x Time (in years)
Q: You and a few of your classmates decided to become entrepreneurs. You came up with a great idea for…
A: There are two users of information one is internal as well as external users where as external users…
Q: Analyze the following: I – When a component of an entity was discontinued during the current year,…
A: Any loss on discontinued operation would be accounted in a single entry separately in the financial…
Q: Cash $655,500 759,000 Marketable securities Accounts and notes receivable (net) 310,500 Inventories…
A: Working capital is the amount of capital needed for daily operations of the business. This is…
Q: Willard Company established a $500 petty cash fund on September 9, 2020. On September 30, the fund…
A: Petty cash refers to the small amount of cash maintained by cashier of company in order to meet…
Q: 6. Rankin Ltd has entered into an agreement to lease an item of equipment that produces teddy bears.…
A: The interest rate is the proportion of the principal—the amount lent—charged by a lender to a…
Q: The general ledger of Grumpy Corporation as of December 31, 2021, includes the following accounts…
A: Intangible assets are the non physical assets the benefit of which can be reaped in more than a…
Q: Use the following information for the Exercises 3-7 below. (Algo) [The following information applies…
A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…
Q: Illustration 2. Business Combination Achieved in Stages and without transfer of consideration On…
A: In most cases, the transferred consideration is appraised at its fair market value. The communicated…
Q: A broker wants to sell a customer an investment costing $100 with an expected payoff in one year of…
A: Answer:- Expected return meaning:- The expected return can be defined as the profit or loss an…
Q: Under what circumstances are external auditors likely to be involved in operational auditing? Can…
A: Introduction:- An operational audit is systematic review of effectiveness, efficiency of operation.…
Q: Required information [The following information applies to the questions displayed below.] The…
A: INTRODUCTION: The accounting equation depicts the connection between assets, liabilities, and…
Q: 13. The process of transferring the information contained in the journal to the ledger is called OA.…
A: Any transaction that happens is first recorded in the journal. Those recorded transactions are then…
Q: Capri Company began the current period with a $37,000 credit balance in the K. Capri, Capital…
A: Adjusted Account Balance: A trial balance that has been changed provides a listing of the account…
Q: The Market Company won a contract to build a shopping center at a price of $300 million. The…
A: In the context of the given question, we are required to compute the revenue to be recognized in…
Q: According to COSO, internal control is a:
A: According to COSO: Internal control is not a set of rules because the internal control document…
Q: What is the asset turnover for 2021?
A: Introduction:- Ratio analysis used to analysis business performance. Ratios express the numerical…
Q: Blossom Co. as lessee records a finance lease of machinery on January 1, 2021. The seven annual…
A: Answer:- Amortization meaning:- Amortization is basically used to describe as the process of…
Outstanding Shares
Pearce & Company has 4 million shares of $4 par value common stock outstanding.
The company believes that its current market price of $150 per share is too high and
decides to execute a 4-for-1 forward stock split to lower the price.
How many shares (in millions) will be outstanding following the stock split, and what will be the new par value per share?
# of shares | Par value | ||
---|---|---|---|
million | per share |
Step by step
Solved in 2 steps with 1 images
- Stock Split Suppose you own 2,000 common shares of Laurence Incorporated. The EPS is $10.00, the DPS is $3.00, and the stock sells for $80 per share. Laurence announces a 2-for-1 split. Immediately after the split, how many shares will you have, what will the adjusted EPS and DPS be, and what would you expect the stock price to be?Stock Price after Recapitalization Lee Manufacturings value of operations is equal to 900 million after a recapitalization. (The firm had no debt before the recap.) Lee raised 300 million in new debt and used this to buy back stock. Lee had no short-term investments before or after the recap. After the recap, wd = 1/3. The firm had 30 million shares before the recap. What is P (the stock price after the recap)?Nutritious Pet Food Companys board of directors declares a 2-for-1 stock split on June 30 when the stocks market value per share is $30. At that time, there are 10,000 shares of $1 par value common stock outstanding (none held in treasury). What is the new par value of the shares and how many shares are outstanding after the split? What is the total amount of equity before and after the split?
- Nutritious Pet Food Companys board of directors declares a 2-for-1 stock split on June 30 when the stocks market value per share is $30. At that time, there are 10,000 shares of $1 par value common stock outstanding (none held in treasury). What is the new par value of the shares and how many shares are outstanding after the split?Profit or Loss on New Stock Issue Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as follows: The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $300,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price? $5 per share $6 per share $4 per sharePreferred Stock Dividends Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has $200,000 available for dividends in 2019, how much could it pay to the common stockholders Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has S200,000 available for dividends in 2019, how much could it pay to the common stockholders
- Suppose IWT has decided to distribute $50 million, which it presently is holding in liquid short-term investments. IWT’s value of operations is estimated to be about $1,937.5 million; it has $387.5 million in debt and zero preferred stock. As mentioned previously, IWT has 100 million shares of stock outstanding. Assume that IWT has not yet made the distribution. What is IWT’s intrinsic value of equity? What is its intrinsic stock price per share? Now suppose that IWT has just made the $50 million distribution in the form of dividends. What is IWT’s intrinsic value of equity? What is its intrinsic stock price per share? Suppose instead that IWT has just made the $50 million distribution in the form of a stock repurchase. Now what is IWT’s intrinsic value of equity? How many shares did IWT repurchase? How many shares remained outstanding after the repurchase? What is its intrinsic stock price per share after the repurchase?In the spring of 1984, Disney Productions' stock was selling for about 3.125 per share. (All prices have been adjusted for 4-for-l splits in 1986 and 1992.) Then Saul Steinberg, a New York financier, began acquiring it; after he had 12%, he announced a tender offer for another 37% of the stockwhich would bring his holdings up to 49%at a price of 4.22 per share. Disney's management then announced plans to buy Gibson Greeting Cards and Arvida Corporation, paying for them with stock. It also lined up bank credit and (according to Steinberg) was prepared to borrow up to 2 billion and use the funds to repurchase shares at a higher price than Steinberg was offering. All of these efforts were designed to keep Steinberg from taking control. In June, Disney's management agreed to pay Steinberg 4.84 per share, which gave him a gain of about 60 million on a 2-month investment of about 26.5 million. When Disney's buyback of Steinberg's shares was announced, the stock price fell almost instantly from 4.25 to 2.875. Many Disney stockholders were irate, and they sued to block the buyout. Also, the Disney affair added fuel to the fire in a congressional committee that was holding hearings on proposed legislation that would (1) prohibit someone from acquiring more than 10% of a firm's stock without making a tender offer for all the remaining shares; (2) prohibit poison pill tactics such as those Disney's management had used to fight off Steinberg; (3) prohibit buybacks, such as the deal eventually offered to Steinberg, (greenmail) unless there was an approving vote by stockholders; and (4) prohibit (or substantially curtail) the use of golden parachutes (the one thing Disney's management did not try). Set forth the arguments for and against this type of legislation. What provisions, if any, should it contain? Also, look up Disney's current stock price to see how its stockholders have fared. Note that Disney's stock was split 3-for-l in July 1998.In the spring of 1984, Disney Productions stock was selling for about 3.125 per share. (All prices have been adjusted for 4-for-1 splits in 1986 and 1992.) Then Saul Steinberg, a New York financier, began acquiring it; after he had 12%, he announced a tender offer for another 37% of the stockwhich would bring his holdings up to 49%at a price of 4.22 per share. Disneys management then announced plans to buy Gibson Greeting Cards and Arvida Corporation, paying for them with stock. It also lined up bank credit and (according to Steinberg) was prepared to borrow up to 2 billion and use the funds to repurchase shares at a higher price than Steinberg was offering. All of these efforts were designed to keep Steinberg from taking control. In June, Disneys management agreed to pay Steinberg 4.84 per share, which gave him a gain of about 60 million on a 2-month investment of about 26.5 million. When Disneys buyback of Steinbergs shares was announced, the stock price fell almost instantly from 4.25 to 2.875. Many Disney stockholders were irate, and they sued to block the buyout Also, the Disney affair added fuel to the fire in a congressional committee that was holding hearings on proposed legislation that would (1) prohibit someone from acquiring more than 10% of a firms stock without making a tender offer for all the remaining shares, (2) prohibit poison pill tactics such as those Disneys management had used to fight off Steinberg, (3) prohibit buybacks, such as the deal eventually offered to Steinberg, (greenmail) unless there was an approving vote by stockholders, and (4) prohibit (or substantially curtail) the use of golden parachutes (the one thing Disneys management did not try). Set forth the arguments for and against this type of legislation. What provisions, if any, should it contain? Also, look up Disneys current stock price to see how its stockholders have fared. Note that Disneys stock was split 3-for-1 in July 1998 and 1,014-for-1,000 in June 2007.