The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $43 per share. What effects on the equity accounts will the distribution of the stock dividend have? Common stock ($1 par value) Capital surplus Retained earnings Total owners’ equity $ 385,000 846,000 3,720,800 $4,951,800

Question

The company with the common equity accounts shown
here has declared a 15 percent stock dividend when the market value of its stock is
$43 per share. What effects on the equity accounts will the distribution of the stock
dividend have?
Common stock ($1 par value)
Capital surplus
Retained earnings
Total owners’ equity
$ 385,000
846,000
3,720,800
$4,951,800

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Finance

Accounting and Finance Analysis

Related Finance Q&A

Find answers to questions asked by students like you.

Q: Six years ago you acquired a 15-year loan of $140,400, charging 3.4% annual interest, compounded mon...

A: monthly payment formula: pmt=p×rm1-1+rm-m×n where,  p = principal r = rate of interest m = frequency...

Q: The Taylor Mountain Uranium Company currently has annual cash revenues of $1.2 million and annual ca...

A:   Potential investment Current investment potential investment-current investment Annual cash re...

Q: The White Corporation makes small Bozo replicas for sale in the growing Austin market. The firm's ca...

A: a) Maximum of preferred stock = $ 20 million, which has 10% share Therefore, Size of preferred stock...

Q: The buyer of a piece of real estate is often given the option of buying down the loan. This option g...

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If y...

Q: Q No. 2 Read carefully the following scenarios and answer the questions asked in each scenario after...

A: “Since you have posted a question with multiple subparts, we will solve first three subparts for you...

Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a...

A: Standard deviation A measurement of the variation of amount/ dispersion of the set of values. 

Q: Sales (30,000units)                                                                  P 150,000      ...

A: An organization’s ability to meet its long-term commitments and the impact on its profit-making capa...

Q: OLA#10.4 A company is evaluating the feasibility of investing in machinery to manufacture an automot...

A: Net present value = present value of future cashflow discounted at 7% Cashflow of year 1-7 =(8900 co...

Q: Bob uses 19481 to purchase a 10-year par-value bond (i.e. redeems at face-value). Coupons are paid o...

A: N (Time Period) = 10 Assuming Face Value of bond = 20,000 Coupon = 2%*Face Value = 2%*20,000 = 400 Y...

Q: The yield to maturity on a bond is A. below the coupon rate when the bond sells at a discount and e...

A: Yield to Maturity : It is the expected rate of return that an investor in the bond may earn on his i...

Q: Suppose you take a 15-year mortgage for a house that costs $253,368. Assume the following: The annu...

A: To determine the minimum monthly salary.

Q: Assume that your father is now 50 years old and plans to retire after 10 years from now. He is expec...

A: Age Year Cash Flow Required Present Value of cash flow = Cash Flow / (1+interest%)^Year Working 60...

Q: As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (i...

A: Click to see the answer

Q: On October 25, you plan to purchase a $1,200 computer by using one of your two credit cards. The Sil...

A: (A) For silver card: Interest on 10th November month=balance on 1st oct*18%=0*18%=0, remaining balan...

Q: Assume that you just inherited an annuity that Will pay you 10,000 per year, with the first payment ...

A:   Cash flows of your friend's mother  Assuming the total annuity period is 10 years. CF at Time 0 = ...

Q: 8. Inflation-induced tax distortions Rajiv receives a portion of his income from his holdings of int...

A: Real Int. rate is Interest rate that shows impact of inflation whereas Nominal Int. rate is actual I...

Q: The Estrella-Pantaleon Bridge connecting Estrella, Makati City to Barangka Drive in Mandaluyong is a...

A: (a) Cost of asphalt overlay =PhP 11,000/m2 Therefore, total initial cost of the asphalt overlay =PhP...

Q: Classify the following transactions as taking place in the primary or secondary markets:  IBM issues...

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts fo...

Q: Chhom Corporation makes a product whose direct labor standards are 0.9 hours per unit and $21 per ho...

A: Labor Efficiency Variance = (Actual Hours - Standard Hours) x Standard Rate      

Q: 1. Incremental costs - Initial and terminal cash flow Consider the case of Alexander Industries...

A: Initial investment / outlay : It includes cost equipment , installation & shipping charges and n...

Q: What elements and dynamics may have led to a drop in the required rate of return and Explain vigilan...

A: Elements and dynamics that may have led to a drop in the required rate of return are- Investment ris...

Q: Please show working   Please answer ALL OF QUESTIONS 1 AND 2A and 2B   1. Stock R has a beta of 1.2,...

A: Required return of stock R Required return = Risk free rate + beta * required return on average stoc...

Q: A 10-year loan of 2000 is to be repaid with payments at the end of each year. It can be repaid under...

A: Loan Amount, A=2000Yearly Payment, P=200Number of years=10Interest rate=5%Total amount paid in case ...

Q: 65. At the beginning of the slide, you were asked to derive the annualize rate of return for the U.S...

A: The annualized rate of return is the rate of return an investment earned in annual terms if held for...

Q: FFC is trying to establish its optimal capital structure. Its current capital structure consists of ...

A: Unlevered beta = levered beta  /  1+((1-taxrate)*D/E Unlevered beta = 1.50 / 1+((1-0.40)*0.25/0.75 U...

Q: A four-year ordinary annuity has a present value of P10,000. If the interest rate is 5% per annum, h...

A: Present value =10000 interest rate =5% Period =4 years  Present value FACTOR =1-(1.05)-4/0.05 Presen...

Q: Consider the following performance data for two portfolio managers (A and B) and a common benchmark ...

A: Given:

Q: Explain carefully how and why a decline in the required rate of return affects stock values and retu...

A: Required rate on stock decide value of stock because required rate depends on net income and capital...

Q: A lottery jackpot of one million is paid out $25,000 a year for 40 years. At a 10 percentrequired re...

A: Using excel PV function to calculate Present value of annuity due 

Q: 7. Calculating finance charges using the discount method and APRon a single-payment loan You a...

A: financial charge =p×r×tloan disbursed = principal - financial charge APR=FINANCE CHARGEPRINCIPALN

Q: 7) see picture

A: Formula to calculate stock value per share: Market value/No of outstanding shares Formula for Market...

Q: Please show working   Please answer ALL OF QUESTIONS 1 AND 2   1. A 7% semiannual coupon bond mature...

A: Since you have posted multiple questions, we will solve the first question for you. If you want any ...

Q: 4. A particular security’s equilibrium rate of return is 8 percent. For all securities, the inflatio...

A: The rate of return on a security refers to the compensation paid by the company to the investors who...

Q: 1.On August 15, you purchased 100 shares of stock in the Top Company at $65 a share anda year later ...

A: HPR or HPY = (Value of share at end - Value of share at beginning) / Value of share at beginning HPR...

Q: Sales price per unit R15 R19Variable cost per unit R6 R7Fixed cost (FC) per annum R650 000 R 855 500...

A: Break-Even quantity is that measure of units that must be produced and sold such that the revenue is...

Q: Uchi is a small restaurant chain specializing in Japanese dishes. Its equity has a market value of $...

A: Assumption: We assume that the value of debt given in the question is the market value of debt that ...

Q: stocks. ETFS can be purchased on the stock exchanges like individual stocks. Assume that you can exc...

A: Arbitrage opportunity exists when the market price of underlying securities is different from the pr...

Q: Please show working   Please answer ALL OF QUESTIONS 1 AND 2   1. Suppose you are the money manager ...

A: Beta of the portfolio is weighted average beta of individual stock Therefore portfolio beta = 0.8035

Q: The Market Cap of a company with 1,700,000 shares outstanding and a market price per share of $25 is...

A: Market capitalisation is generally referred as market cap. It represents the value of the outstandin...

Q: Find the amount that results from the investment. Round the answer to the nearest cent. $480 investe...

A: This question is asking about the value of investment of amount $ 480 @ 14% for 9 year and compounde...

Q: 3. Analysis of a replacement project At times firms will need to decide if they want to continue...

A: Analysis of Replacement Projects

Q: Slobe Telecom is considering a project for the coming year that will cost P50 million. Slobe plans t...

A: Capital structure is the adequate formation and combination of sources of finance needed to operate ...

Q: An $80,000 loan is amortized by payments of $1950 at the end of every quarter at a rate of 9% compou...

A: Case : As the question said that $ 1950 per quarter to amortize the loan amount $ 80000 but time is ...

Q: A couple who borrow $70,000 for 15 years at 8.4%, compounded monthly, must make monthly payments of ...

A: formula for remaining balance: remaining balance=princial×1+rmn-pmt×1+rmn-1rm where, r = rate of int...

Q: How to solve this problem? The year-end operating and maintenance costs of a certain machine are est...

A: Equivalent Annual Cost (EAC) : It is a capital budgeting method, it is used where only annual cost o...