Which of the following would cause a decrease in stockholders' equity? (A) Purchase of equipment (B) Payment of cash dividend (C) Declaring cash dividend (D) Issuing stock certificate for stock dividends nswer OA OB OD
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- Hi there, could you please check if my answers were correct? Testbank Exercise 136 Indicate the effect of each of the following transactions on total stockholders' equity by placing an "X" in the appropriate column. Increase Decrease No Effect 1. Treasury stock is resold at more than cost. X 2. Operating loss for the period. X 3. Retirement of bonds payable at more than book value. X 4. Declaration of a stock dividend. x 5. Acquisition of machinery for common stock. X 6. Conversion of bonds payable into common stock. X 7. Not declaring a dividend on cumulative preferred stock. x 8. Declaration of cash dividend. X 9. Payment of cash dividend. X7. Use the information in Exercise 6, but assume instead that a 20% stock dividend was declared. Answer the same requirements. (see attached images especially for the information in Exercise 6 in the uploaded images. Please answer it. thank you so much) NOTE: Please answer letter a to b7. Use the information in Exercise 6, but assume instead that a 20% stock dividend was declared. Answer the same requirements. (see attached images especially for the information in Exercise 6 in the uploaded images. Please answer it. thank you so much) c) Compare with the accounts and figures given above and explain the effects of this stock dividend on the a) assets, b) liabilities, and c) shareholders' equity. d) Prepare again the shareholders' equity immediately after the stock dividend was distributed. Compare the accounts against no 1 above and explain the effects of this distribution on the a) assets, b) liabilities, and c) shareholders' equity.
- 3. Below is a snapshot of some information about Microsoft Corporation from Yahoo! Finance on 10/16/2019. B) What is the Microsoft stock price and the market cap? C) Based on the information you collected in question (1), what is the total number of shares outstanding for Microsoft? (Hint: Market cap is the short name for “Market capitalization”. It represents the market value of a company’s total outstanding shares. It is equal to the stock price per share* total number of shares outstanding). D)What is Microsoft dividend payment and dividend yield?17. Analyze the equity section of Gingerbread Corp's balance sheet and determine the following. Be careful to discriminate between a non monetary value and a monetary value. Use a $ sign to indicate a dollar value. 1.Number of shares of common stock that have been issued 2.Number of shares of preferred stock that have been issued 3.BlankDollar value the company paid to repurchase their own stock 4.How many shares of stock are in treasury stock?7. Use the information in Exercise 6, but assume instead that a 20% stock dividend was declared. Answer the same requirements. (see attached images especially for the information in Exercise 6 in the uploaded images. Please answer it. thank you so much)
- Q2. a) Why companies are issuing stock dividend? What are the influential factors and the impact of it to the business and stockholders’ point of view. b) The board of directors of ABC Company recently announced a 24% stockdividend. Assuming that the current stock price is OMR 8 and there are 700,000 total ordinary shares outstanding of OMR 0.600 each.You are required to determine the following:i) Determine the market capitalization of the Company before the stock dividend.ii) Determine the increase in shares outstanding due to a 20% stock dividend.iii) Determine the new total shares outstanding.iv) Determine the price per share of the Company after stock dividendi will 10 upvotes urgent. Stockholders that do not get benefits even if company's earnings grow are classified as. A. preferred stockholders B. common stockholders C. hybrid stockholders D. debt holdersMatch (by letter) the following terms with their definitions. Each letter is used only once.Terms_____ 1. PE ratio._____ 2. Stockholders’ equity section of the balance sheet._____ 3. Accumulated deficit._____ 4. Growth stocks._____ 5. 100% stock dividend._____ 6. Statement of stockholders’ equity._____ 7. Treasury stock._____ 8. Value stocks._____ 9. Return on equity._____ 10. Retained earnings.Definitionsa. A debit balance in Retained Earnings.b. Priced high in relation to current earnings as investors expect future earnings to be higher.c. Effectively the same as a 2-for-1 stock split.d. The earnings not paid out in dividends.e. The stock price divided by earnings per share.f. Summarizes the changes in the balance in each stockholders’ equity account over a period of time.g. Priced low in relation to current earnings.h. Measures the ability of company management to generate earnings from the resources that owners provide.i. Shows the balance in each equity account at a point in…
- A firm’s common stock has D1 = $1.50, P0 = $30.00, g = 5%, and F = 4%. If the firmmust issue new stock, what is its cost of new external equity?7. Use the information in Exercise 6, but assume instead that a 20% stock dividend was declared. Answer the same requirements. (see attached images especially for the information in Exercise 6 in the uploaded images. Please answer it based on your knowledge. thank you so much!) NOTE: only letter C and D is the unanswered so please answer it thank you! a) Prepare the required entries to for the declaration and distribution. b) Prepare the shareholders’ equity section immediately after the stock dividend was declared. c) Compare with the accounts and figures given above and explain the effects of this stock dividend on the a) assets, b) liabilities, and c) shareholders' equity. d) Prepare again the shareholders' equity immediately after the stock dividend was distributed. Compare the accounts against no 1 above and explain the effects of this distribution on the a) assets, b) liabilities, and c) shareholders' equity.7. Use the information in Exercise 6, but assume instead that a 20% stock dividend was declared. Answer the same requirements. (see attached images especially for the information in Exercise 6 in the uploaded images. Please answer it based on your knowledge. thank you so much!) b) Prepare the shareholders’ equity section immediately after the stock dividend was declared.