True or False, pls explain why 3) A 3 for 1 stock split will result to same number of shares as a 200% stock dividend True False
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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).Using the P/E ratio approach to stock valuation, caclulate the value of a share of stock of Wallmart where expected earnings per share (EPS) are $ 4.25 and similar shares of stock sell at multiples (P/E) of 35.69 times earnings per share (EPS) a. $ 35.69 b. $ 151.68 c. $ 141.68 d. $ 4.253. A property holdings declared a dividend of P9 per share for the common stock. If the common stock closes at P76, how large is the stock yield ratio on this investment? a. 27. 17% c. 11.04% b. 27. 07% d. 11.84%
- (b) If, instead of announcing a 20% stock dividend, Carson declares a 3-for-2 stock split, andassuming that Carson’s current dividend is RM0.60 per share:(i) Calculate Carson’s market capitalisation, dividend yield, dividend per share andearnings per share before and after the 3-for-2 stock split. (ii) Based on the calculations in part (b)(i) above, explain the impact of the 3-for-2 stocksplit on the shareholders of the company.1. How many shares are outstanding at December 31, 2018? _____________ 2. Using the same information given in above. After the split, what will be the cost per share of the treasury shares? _____________Ifyouareaninvestorhaving4,000sharesandtheboarddeclaresthedistributionof0.03additional shares per share already owned, how many stock dividends would you receive? a. 100 b. 120 c. 110 d. 140
- Required: Determine the following items based on Eldon's balance sheet. Round all calculations except per-share amounts to the nearest whole number; round per-share amounts to the nearest cent. 4. The par value of the common stock $? per share 7. The total stockholders' equity $? 8. The per-share book value of the common stock assuming that there are no dividends in arrears and that the preferred stock can be redeemed at its par value $? per shareWhat would be the park value for one share of common stock after 2:1 stock split If the company had a 2:1 stock split on it's common stock would common stock increase decrease or start the same if the company had a2:1 stock split on it's common stock would total owners equity increase decrease or stay the sameIf the company had a2:1 stock split on it's common stock would retained earnings increase decrease or stay the same?
- Which one of the following is basically equivalent to a 2-for-1 stock split? 200% Stock dividend 100% Stock dividend 25% Stock dividend 50% Stock dividendGonzales Corporation’s common stock (Ordinary Shares) account for 2023 and 2022 showed: (check the attached photo) Calculate the (A) dividend yield, and (B) dividend payout. Choose the bullet with correct answer (A) 2023 – 0.025, 2022 – 0.036, (B) 2023 – 0.23, 2022 – 0.30 (A) 2023 – 0.035, 2022 – 0.046, (B) 2023 – 0.33, 2022 – 0.40 (A) 2023 – 0.045, 2022 – 0.056, (B) 2023 – 0.43, 2022 – 0.50 (A) 2023 – 0.055, 2022 – 0.066, (B) 2023 – 0.53, 2022 – 0.60 (A) 2023 – 0.065, 2022 – 0.076, (B) 2023 – 0.63, 2022 – 0.70Question 4- We have those information available to make a calculation. Number of shares: 2.000.000 Nominal value of each share: 1.000 TL Market price declared by the Stock Exchange: 12 TL Stock Exchange declares the price of a 1 lot of shares and 1 lot denotes 1000 TL nominal value of shares. What is the market value of the shares we have?