Problem 3
Gordon's Meats has 6,500 shares of stock outstanding. The market value is $26.50 per share. The statement of financial position shows $48,200 common stock account, and $142,900 in the retained earnings account. The firm just announced a 5 percent stock dividend. What will the balance be in the common stock and retained earnings accounts after the dividend?
Problem 4
Berk currently has 650,000 shares of stock outstanding that sell for $75 per share. Assuming no market imperfections or tax effects exist, what will the share price and the new number of shares after:
a.Berk has a six-for-four stock split?
b.Berk has a 17 percent stock dividend?
c.Berk has a 38.5 percent stock dividend?
d.Berk has a four-for-six reverse stock split?
Problem 3
Gordon's Meats has 6,500 shares of stock outstanding. The market value is $26.50 per share. The statement of financial position shows $48,200 common stock account, and $142,900 in the retained earnings account. The firm just announced a 5 percent stock dividend. What will the balance be in the common stock and retained earnings accounts after the dividend?
Problem 4
Berk currently has 650,000 shares of stock outstanding that sell for $75 per share. Assuming no market imperfections or tax effects exist, what will the share price and the new number of shares after:
a.Berk has a six-for-four stock split?
b.Berk has a 17 percent stock dividend?
c.Berk has a 38.5 percent stock dividend?
d.Berk has a four-for-six reverse stock split?
Related questions
Simmons Mineral Operations, Inc., (SMO) currently has 450,000 shares of stock outstanding that sell for $90 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:
| a. | SMO has a four-for-three stock split? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
| New share price | $ |
| b. | SMO has a 10 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
| New share price | $ |
| c. | SMO has a 47.5 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
| New share price | $ |
| d. | SMO has a four-for-seven reverse stock split? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
| New share price | $ |
| e. | Determine the new number of shares outstanding in parts (a) through (d). (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.) |
| a. | New shares outstanding | |
| b. | New shares outstanding | |
| c. | New shares outstanding | |
| d. | New shares outstanding | |
