Practice question 8: The board of directors of PQR Company recently announced a 15% stock dividend. Assuming that the current stock price is OMR 8 and there are 1,000,000 total ordinary shares outstanding of OMR o.800 each. You are required to determine the following: Determine the market capitalization of the Company before the stock dividend. • Determine the increase in shares outstanding due to a 15% stock dividend. • Determine the new total shares outstanding. • Determine the price per share of the Company after stock dividend.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
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Problem 5E: Stock Dividend Comparison Although Oriole Company has enough retained earnings legally to declare a...
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Practice question 8: The board of directors of
PQR Company recently announced a 15% stock
dividend. Assuming that the current stock price is
OMR 8 and there are 1,000,000 total ordinary shares
outstanding of OMR 0.800 each.
You are required to determine the following:
• Determine the market capitalization of the
Company before the stock dividend.
• Determine the increase in shares
outstanding due to a 15% stock dividend.
Determine the new total shares
outstanding.
• Determine the price per share of the
Company after stock dividend.
Transcribed Image Text:Practice question 8: The board of directors of PQR Company recently announced a 15% stock dividend. Assuming that the current stock price is OMR 8 and there are 1,000,000 total ordinary shares outstanding of OMR 0.800 each. You are required to determine the following: • Determine the market capitalization of the Company before the stock dividend. • Determine the increase in shares outstanding due to a 15% stock dividend. Determine the new total shares outstanding. • Determine the price per share of the Company after stock dividend.
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