The share price after 5-3 stock split. Introduction: Stock split: A company divides its share into multiple shares and issues them 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 17, Problem 4QP

a)

Summary Introduction

To determine: The share price after 5-3 stock split.

Introduction:

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

Summary Introduction

To determine: New outstanding shares.

b)

Summary Introduction

To determine: The share price at 15% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Summary Introduction

To determine: New outstanding shares.

c)

Summary Introduction

To determine: The share price at 42.5% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Summary Introduction

To determine: New outstanding shares.

d)

Summary Introduction

To determine: The share price after 4-7 reverse stock split.

Introduction:

Reverse stock split: The Company reduces its share, which are outstanding. It is the opposite of forward stock splits. This works normally as a regular dividend but reverse action will take place.

Summary Introduction

To determine: New outstanding shares.

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Answer 2

Question

Chapter 17, Problem 4QP

a)

Summary Introduction

To determine: The share price after 5-3 stock split.

Introduction:

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

Summary Introduction

To determine: New outstanding shares.

b)

Summary Introduction

To determine: The share price at 15% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Summary Introduction

To determine: New outstanding shares.

c)

Summary Introduction

To determine: The share price at 42.5% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Summary Introduction

To determine: New outstanding shares.

d)

Summary Introduction

To determine: The share price after 4-7 reverse stock split.

Introduction:

Reverse stock split: The Company reduces its share, which are outstanding. It is the opposite of forward stock splits. This works normally as a regular dividend but reverse action will take place.

Summary Introduction

To determine: New outstanding shares.

Expert Solution & Answer

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Answer 3

Question

Chapter 17, Problem 4QP

a)

Summary Introduction

To determine: The share price after 5-3 stock split.

Introduction:

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

Summary Introduction

To determine: New outstanding shares.

b)

Summary Introduction

To determine: The share price at 15% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Summary Introduction

To determine: New outstanding shares.

c)

Summary Introduction

To determine: The share price at 42.5% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Summary Introduction

To determine: New outstanding shares.

d)

Summary Introduction

To determine: The share price after 4-7 reverse stock split.

Introduction:

Reverse stock split: The Company reduces its share, which are outstanding. It is the opposite of forward stock splits. This works normally as a regular dividend but reverse action will take place.

Summary Introduction

To determine: New outstanding shares.

Expert Solution & Answer

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Answer 4

Question

Chapter 17, Problem 4QP

a)

Summary Introduction

To determine: The share price after 5-3 stock split.

Introduction:

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

Summary Introduction

To determine: New outstanding shares.

b)

Summary Introduction

To determine: The share price at 15% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Summary Introduction

To determine: New outstanding shares.

c)

Summary Introduction

To determine: The share price at 42.5% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Summary Introduction

To determine: New outstanding shares.

d)

Summary Introduction

To determine: The share price after 4-7 reverse stock split.

Introduction:

Reverse stock split: The Company reduces its share, which are outstanding. It is the opposite of forward stock splits. This works normally as a regular dividend but reverse action will take place.

Summary Introduction

To determine: New outstanding shares.

Expert Solution & Answer

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Answer 5

Chapter 17, Problem 4QP

a)

Summary Introduction

To determine: The share price after 5-3 stock split.

Introduction:

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

Summary Introduction

To determine: New outstanding shares.

b)

Summary Introduction

To determine: The share price at 15% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Summary Introduction

To determine: New outstanding shares.

c)

Summary Introduction

To determine: The share price at 42.5% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Summary Introduction

To determine: New outstanding shares.

d)

Summary Introduction

To determine: The share price after 4-7 reverse stock split.

Introduction:

Reverse stock split: The Company reduces its share, which are outstanding. It is the opposite of forward stock splits. This works normally as a regular dividend but reverse action will take place.

Summary Introduction

To determine: New outstanding shares.

Answer 6

Chapter 17, Problem 4QP

a)

Summary Introduction

To determine: The share price after 5-3 stock split.

Introduction:

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

Answer 7

Chapter 17, Problem 4QP

a)

Summary Introduction

To determine: The share price after 5-3 stock split.

Introduction:

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

Answer 8

Summary Introduction

To determine: New outstanding shares.

Answer 9

Summary Introduction

To determine: New outstanding shares.

Answer 10

b)

Summary Introduction

To determine: The share price at 15% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Answer 11

b)

Summary Introduction

To determine: The share price at 15% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Answer 12

Summary Introduction

To determine: New outstanding shares.

Answer 13

Summary Introduction

To determine: New outstanding shares.

Answer 14

c)

Summary Introduction

To determine: The share price at 42.5% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Answer 15

c)

Summary Introduction

To determine: The share price at 42.5% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

Answer 16

Summary Introduction

To determine: New outstanding shares.

Answer 17

Summary Introduction

To determine: New outstanding shares.

Answer 18

d)

Summary Introduction

To determine: The share price after 4-7 reverse stock split.

Introduction:

Reverse stock split: The Company reduces its share, which are outstanding. It is the opposite of forward stock splits. This works normally as a regular dividend but reverse action will take place.

Answer 19

d)

Summary Introduction

To determine: The share price after 4-7 reverse stock split.

Introduction:

Reverse stock split: The Company reduces its share, which are outstanding. It is the opposite of forward stock splits. This works normally as a regular dividend but reverse action will take place.

Answer 20

Summary Introduction

To determine: New outstanding shares.

Answer 21

Summary Introduction

To determine: New outstanding shares.

Answer 22

Expert Solution & Answer

Answer 23

Expert Solution & Answer

Answer 24

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Answer 25

Ch. 17.1 - Prob. 17.1ACQ Ch. 17.1 - What are the mechanics of the cash dividend...Ch. 17.1 - How should the price of a stock change when it...Ch. 17.2 - How can an investor create a homemade dividend?Ch. 17.2 - Prob. 17.2BCQ Ch. 17.3 - Prob. 17.3ACQ Ch. 17.3 - Why do flotation costs favor a low payout?Ch. 17.4 - Why might some individual investors favor a high...Ch. 17.4 - Prob. 17.4BCQ Ch. 17.5 - How does the market react to unexpected dividend...

The share price after 5-3 stock split. Introduction: Stock split: A company divides its share into multiple shares and issues them to the shareholders as an additional share; as per the decisions by the management is termed as stock split.

Solution Summary: The author explains that S incorporation has 490,000 shares of stock outstanding, sells at 73 per share with stock dividend of 15%.

Concept explainers

Videos

To determine: The share price after 5-3 stock split.

Introduction:

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

To determine: New outstanding shares.

To determine: The share price at 15% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

To determine: New outstanding shares.

To determine: The share price at 42.5% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

To determine: New outstanding shares.

To determine: The share price after 4-7 reverse stock split.

Introduction:

Reverse stock split: The Company reduces its share, which are outstanding. It is the opposite of forward stock splits. This works normally as a regular dividend but reverse action will take place.

To determine: New outstanding shares.

Want to see the full answer?

Chapter 17 Solutions

The share price after 5-3 stock split. Introduction: Stock split: A company divides its share into multiple shares and issues them to the shareholders as an additional share; as per the decisions by the management is termed as stock split.

Solution Summary: The author explains that S incorporation has 490,000 shares of stock outstanding, sells at 73 per share with stock dividend of 15%.

Concept explainers

Videos

To determine: The share price after 5-3 stock split. Introduction: Stock split: A company divides its share into multiple shares and issues them to the shareholders as an additional share; as per the decisions by the management is termed as stock split.

To determine: New outstanding shares.

To determine: The share price at 15% stock dividend. Introduction: Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

To determine: New outstanding shares.

To determine: The share price at 42.5% stock dividend. Introduction: Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

To determine: New outstanding shares.

To determine: The share price after 4-7 reverse stock split. Introduction: Reverse stock split: The Company reduces its share, which are outstanding. It is the opposite of forward stock splits. This works normally as a regular dividend but reverse action will take place.

To determine: New outstanding shares.

Want to see the full answer?

Chapter 17 Solutions

To determine: The share price after 5-3 stock split.

Introduction:

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

To determine: The share price at 15% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

To determine: The share price at 42.5% stock dividend.

Introduction:

Stock dividend: Distribution of dividend in the form of additional shares is termed as stock dividend. It is also termed as ‘Scrip dividend’.

To determine: The share price after 4-7 reverse stock split.

Introduction:

Reverse stock split: The Company reduces its share, which are outstanding. It is the opposite of forward stock splits. This works normally as a regular dividend but reverse action will take place.