The effects of equity accounts and per share data of a 20% stock dividend. Introduction: A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

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Answer 1

Question

Chapter 14, Problem 14.16P

a)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 20% stock dividend.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

b)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 5-4 stock split.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

c)

Summary Introduction

To discuss: The best option which accomplish W Company’s goal of reducing the stock price when maintaining the stable level of retained earnings.

d)

Summary Introduction

To discuss: The legal constraint which might encourage the firm to take the stock split over stock dividend.

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The common stock of Alexander Hamilton Inc. is currently selling at $120 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $70 per share. Nine million shares are issued and outstanding. Instructions Prepare the necessary journal entries assuming the following. a. The board votes a 2-for-1 stock split. b. The board votes a 100% stock dividend. c. Briefly discuss the accounting and securities market differences between these two methods of increasing the number of shares outstanding.

please help me asappp.... Consider the case of Tobotics Inc.: Tobotics Inc. currently has 20,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of two for one as described in the animation. If Tobotics Inc. declares a two-for-one stock split, what will be the price of the company’s stock after the split, assuming that the total value of the firm’s stock remains the same after the split? ______ Scorecard Corp. is one of Tobotics Inc.’s leading competitors. Scorecard Corp.’s market intelligence research team shares Tobotics Inc.’s plans of announcing a stock split, influencing the distribution policymakers. Consequently, executives at Scorecard Corp. decide to offer stock dividends to their shareholders. A stock dividend is another way of keeping the stock price from going too high. Scorecard Corp. currently has 1,100,000 shares of common stock outstanding.…

The company with the common equity accounts shown here has decided on a two-for-one stock split. The firm’s 35-cent-per-share cash dividend on the new (postsplit) shares represents an increase of 5 percent over last year’s dividend on the presplit stock. Common stock ($1 par value) $ 490,000 Capital surplus 1,557,000 Retained earnings 3,882,000 Total owners’ equity $ 5,929,000 a. What is the new par value of the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What was last year’s dividend per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer 2

Question

Chapter 14, Problem 14.16P

a)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 20% stock dividend.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

b)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 5-4 stock split.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

c)

Summary Introduction

To discuss: The best option which accomplish W Company’s goal of reducing the stock price when maintaining the stable level of retained earnings.

d)

Summary Introduction

To discuss: The legal constraint which might encourage the firm to take the stock split over stock dividend.

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Answer 3

Question

Chapter 14, Problem 14.16P

a)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 20% stock dividend.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

b)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 5-4 stock split.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

c)

Summary Introduction

To discuss: The best option which accomplish W Company’s goal of reducing the stock price when maintaining the stable level of retained earnings.

d)

Summary Introduction

To discuss: The legal constraint which might encourage the firm to take the stock split over stock dividend.

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Answer 4

Question

Chapter 14, Problem 14.16P

a)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 20% stock dividend.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

b)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 5-4 stock split.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

c)

Summary Introduction

To discuss: The best option which accomplish W Company’s goal of reducing the stock price when maintaining the stable level of retained earnings.

d)

Summary Introduction

To discuss: The legal constraint which might encourage the firm to take the stock split over stock dividend.

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Answer 5

Chapter 14, Problem 14.16P

a)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 20% stock dividend.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

b)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 5-4 stock split.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

c)

Summary Introduction

To discuss: The best option which accomplish W Company’s goal of reducing the stock price when maintaining the stable level of retained earnings.

d)

Summary Introduction

To discuss: The legal constraint which might encourage the firm to take the stock split over stock dividend.

Answer 6

Chapter 14, Problem 14.16P

a)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 20% stock dividend.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

Answer 7

Chapter 14, Problem 14.16P

a)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 20% stock dividend.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

Answer 8

b)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 5-4 stock split.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

Answer 9

b)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 5-4 stock split.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

Answer 10

c)

Summary Introduction

To discuss: The best option which accomplish W Company’s goal of reducing the stock price when maintaining the stable level of retained earnings.

Answer 11

c)

Summary Introduction

To discuss: The best option which accomplish W Company’s goal of reducing the stock price when maintaining the stable level of retained earnings.

Answer 12

d)

Summary Introduction

To discuss: The legal constraint which might encourage the firm to take the stock split over stock dividend.

Answer 13

d)

Summary Introduction

To discuss: The legal constraint which might encourage the firm to take the stock split over stock dividend.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 14.1 - What two ways can firms distribute cash to...Ch. 14.1 - Why do rapidly growing firms generally pay no...Ch. 14.1 - The dividend payout ratio equals dividends paid...Ch. 14.2 - Prob. 1FOP Ch. 14.2 - Prob. 14.4RQ Ch. 14.2 - Prob. 14.5RQ Ch. 14.2 - Prob. 14.6RQ Ch. 14.3 - Does following the residual theory of dividends...Ch. 14.3 - Contrast the basic arguments about dividend policy...Ch. 14.4 - Prob. 14.9RQ

The effects of equity accounts and per share data of a 20% stock dividend. Introduction: A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

Solution Summary: The author explains the effects of equity accounts and per share data of a 20% stock dividend.

To discuss: The effects of equity accounts and per share data of a 20% stock dividend.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

To discuss: The effects of equity accounts and per share data of a 5-4 stock split.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

To discuss: The best option which accomplish W Company’s goal of reducing the stock price when maintaining the stable level of retained earnings.

To discuss: The legal constraint which might encourage the firm to take the stock split over stock dividend.

Want to see the full answer?

Chapter 14 Solutions

The effects of equity accounts and per share data of a 20% stock dividend. Introduction: A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

Solution Summary: The author explains the effects of equity accounts and per share data of a 20% stock dividend.

To discuss: The effects of equity accounts and per share data of a 20% stock dividend. Introduction: A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

To discuss: The effects of equity accounts and per share data of a 5-4 stock split. Introduction: A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

To discuss: The best option which accomplish W Company’s goal of reducing the stock price when maintaining the stable level of retained earnings.

To discuss: The legal constraint which might encourage the firm to take the stock split over stock dividend.

Want to see the full answer?

Chapter 14 Solutions

To discuss: The effects of equity accounts and per share data of a 20% stock dividend.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

To discuss: The effects of equity accounts and per share data of a 5-4 stock split.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.