What effect will a two-for-one stock split have on the following items found on a firm's financial statements? a. Earnings per share $4.10. Round your answer to the nearest cent. Initial amount $4.10 Initial amount $4,600,000 New amount b. Total equity $11,000,000. Round your answer to the nearest dollar. Initial amount New amount $11,000,000 $ Initial amount $1,664,000 $ c. Long-term debt $4,600,000. Round your answer to the nearest dollar. Effect Initial amount $4,100,000 New amount $ Effect -Select- d. Additional paid-in capital $1,664,000. Round your answer to the nearest dollar. New amount $ LA Effect -Select- New amount -Select- e. Number of shares outstanding 1,000,000. Round your answer to the nearest whole number. Initial amount 1,000,000 Effect -Select- f. Earnings $4,100,000. Round your answer to the nearest dollar. New amount $ Effect -Select- Effect -Select-

What effect will a two-for-one stock split have on the following items found on a firm's financial statements? a. Earnings per share $4.10. Round your answer to the nearest cent. Initial amount $4.10 Initial amount $4,600,000 New amount b. Total equity $11,000,000. Round your answer to the nearest dollar. Initial amount New amount $11,000,000 $ Initial amount $1,664,000 $ c. Long-term debt $4,600,000. Round your answer to the nearest dollar. Effect Initial amount $4,100,000 New amount $ Effect -Select- d. Additional paid-in capital $1,664,000. Round your answer to the nearest dollar. New amount $ LA Effect -Select- New amount -Select- e. Number of shares outstanding 1,000,000. Round your answer to the nearest whole number. Initial amount 1,000,000 Effect -Select- f. Earnings $4,100,000. Round your answer to the nearest dollar. New amount $ Effect -Select- Effect -Select-

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
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).
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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?
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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)