Finance

Chapter 10 3) a. $90 x ½ = $45; the new expense is $45 b. payout balance before stock split: 6 / 9.50 = 63.16 payout ratio later on stock split: 3 / 4.75 = 63.16 4) Cash $28,000,000 Common rail line ($50 study; 2,000,000 pctages outstanding) coulomb,000,000 extra paid in crownwork 10,000,000 contain requital 62,000,000 a. If a cash dividend of $1 per share: 1 x 2,000,000 Cash $28,000,000 2,000,000 = 26,000,000 Common Stock ($50 par; 2,000,000 shares outstanding)100,000,000 = no change Additional paid in detonator 10,000,000 = no change well-kept earnings 62,000,000 2,000,000 = 60,000,000 b. If a 5 part stock dividend (fair market value is $100 per share): Cash $28,000,000 = no change Common Stock ($50 par; 2,000,000 shares outstanding)100,000,000 + 5,000,000=105,000,000 2,000,000 x .05 x 50 = 5,000,000 Additional paid in pileus 10,000,000 + 5,000,000=15,000,000 Retained earnings 62,000,000 10,000,000=52,000,000 2,000,000 x .05 x 100 = 10,000,000 c.

If a one-for-two dispel split: Cash $28,000,000 Common Stock ($100 par; 1,000,000 shares outstanding) 100,000,000 Additional paid in capital 10,000,000 Retained earnings 62,000,000 5) Common stock ($1 par; 100,000 shares outstanding) 100,000 + 20,000 = 120 ,000 100,000 x ! .20 = 20,000 Additional paid-in capital200,000 + 60,000 = 260,000 4-1= 3 x 20,000 = 60,000 Retained earnings225,000 80,000 = 145,000 20,000 x 4 = 80,000 7) a. earnings per share $4.20 4.20 x ½ = $2.10 b. total beauteousness $10,000,000 no change c. long term debt $4,300,000 no change d. extra paid-in capital $1,534,000 ...If you want to get a full essay, direct it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper