1. ((a) Progressive Services, Inc. has just declared a 7 for 3 stock split. The company's pre-split common stockholders' equity was as follows: Common stock($1.25 par, 2,000,000 shares) Contributed capital in excess of par Retained earnings Total common stockholders' equity $ 2,500,000 $ 17,500,000 182,100,000 $202,100,000 If the pre-split price of common stock was $40, what will be the amount of retained earnings after the split? (
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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).A corporation has 71,868 shares of $36 par stock outstanding that has a current market value of $312 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately a.$17,967 b.$9 c.$78 d.$276A corporation has 52,241 shares of $23 par stock outstanding that has a current market value of $304 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately a. $1,216.00 O b. $76.00 O c. $5.75 Od. $281.00
- PQR SAOG has issued and paid up capital of OMR 2 million OMR 1 par value common stock. The current market price of each share is OMR 3. The company board decided a 4 for 1 stock split. The Market capitalization value of share after stock split should be a. 8,000,000 b. 2,000,000 c. 6,000,000 d. 4,000,000The following information relates to X, Y, and Z as at 30 June 2021 Stock Share price Number of shares X 10 2,000,000 Y 15 6,000,000 Z 20 10,000,000 During the year the following activities occurred; A two for one stock split on Y Payment of 10% dividend on Z. It can be assumed that the entire dividend paid will be reinvested in shares of Z limited. On 30 June 2022 the stock prices of X, Y and Z were sh 12, sh 10 and sh 20 respectively. Required; New index value given that the beginning value index is 100. Explain how secondary markets benefit investors. State and explain the main risks faced by financial institutions in the course of conduct of their business.Answer with computation and explanation If the total authorized share capital is P1,000,000 at P10 par, the unissued share capital is 25,000 shares, and all the issued shares were sold at P15, then the total shareholders' equity before any operation activities is a 2 750,000. b P1,125,000 c. P375,000. d. P250,000.
- For items 29 to 31: The Merry Corporation has the following classes of stock outstanding: Common stock, par value P100 6% preferred stock, par value P100 P300,000 100,000 Retained earnings of P48,000 is to be distributed as dividends. Dividends have not been paid on preferred stock for the preceding two years. 29.The total dividends to be given to preferred stock, if preferred stock is cumulative and fully participating, would be: (a) P27,000 (b) P25,000 (c) P22,000 (d) P21,000 30.The total dividends to be given to common stock, if preferred stock is cumulative and fully participating, would be: (a) P23,000 (b) P26,000 (c) P29,000 (d) P27,000 31.The total dividends to be given to preferred stock, if preferred stock is non- cumulative and fully participating, would be: (a) P15,000 (b) P14,000 (c) P11,000 (d) P12,000The owners' equity accounts for Mars International are shown here: Common stock ($.50 par value) Capital surplus Retained earnings Total owner's equity Please show the equity accounts will change if: a. The company declares a 5-for-1 stock split. How many shares are outstanding now? What is the new par value per share? b. The company declares a 1-for-4 reverse stock split. $20,000 210,000 587,300 $817,300 c. The balance sheet for Mars International is shown below in Market value terms. There are 12,000 shares of stock outstanding. Market Value Balance Sheet Equity $817,300 Cash $ 99,660 Fixed assets 717,640 Total $817,300 Total $817,300 The company has declared a dividend of $1.45 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? d. suppose the company has announced it is going to repurchase $17,400 worth of stock. What effect…The owners' equity accounts for Vulcano International are shown here: Common stock ($.50 par value) Capital surplus Retained earnings $ 20,000 210,000 587,300 $ 817,300 Total owners' equity a-1.If the company declares a 4-for-1 stock split, how many shares are outstanding now? (Do not round intermediate calculations.) a- What is the new par value per share? (Do not round intermediate calculations and 2. round your answer to 3 decimal places, e.g., 32.161.) b- If the company declares a 1-for-5 reverse stock split, how many shares are 1. outstanding now? (Do not round intermediate calculations.) b- What is the new par value per share? (Do not round intermediate calculations and 2. round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. 160,000 0.125 8,000 800.00 a-1. New shares outstanding a-2. New par value b-1. New shares outstanding b-2. New par value GA $ per share per share
- A corporation has 50,000 shares of $100 par value stock outstanding that has a current market value of $180. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately: Oa. $36. Ob. $30. Oc. $50. Od. $45.Calgate Company had the following shares outstanding and retained earnings at the end of the current year: Preferred shares, 4% (par value $15; outstanding, 10,300 shares) Common shares (outstanding, 33,000 shares) Retained earnings The board of directors is considering the distribution of a cash dividend to both groups of shareholders. No dividends were declared during the previous two years. Three independent cases are assumed: Case A: The preferred shares are non-cumulative; the total amount of dividends is $51,600. Case B: The preferred shares are cumulative; the total amount of dividends is $63,000. Case C: Same as case B, except the amount is $97,500. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of shareholders for each case. (Round "Per share" to 2 decimal places.) Case A: Total Per share Case B: Total Per share $ 154,500 615,000 296,000 Case C: Total Per share Preferred Shares Common Shares1. The following is a list of stockholders' equity accounts appearing on the balance sheet for WhiteheartCorporation on December 31, 20X3.Common stock, $10 par value P300,000Paid-in capital in excess of par-common 200,000Retained earnings 225,000Preferred stock, P50 par value 150,000Paid-in capital in excess of par-preferred 30,000Determine the following:a) How many shares of preferred stock have been issued?b) What was the average issuance price of the preferred stock per share?c) How many shares of common stock have been issued?d) What is total paid-in capital?e) What is total stockholders' equity?
