The ownersâ equity accounts for Overby International are shown here:
Common stock ($1 par value) $ 70,000 Capital surplus 197,000 Retained earnings 650,000 Total ownersâ equity $ 917,000
a. Assume the company's stock currently sells for $46 per share and a stock dividend of 5 percent is declared.
How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
New shares issued
Show the new balance for each equity account. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Common stock $ Capital surplus Retained earnings Total ownersâ equity $
b. Now assume that instead the company declares a stock dividend of 10 percent.
How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
New shares issued
Show the new balance for each equity account. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Common stock $ Capital surplus Retained earnings Total ownersâ equity $
The ownersâ equity accounts for Overby International are shown here:
| Common stock ($1 par value) | $ | 70,000 | ||
| Capital surplus | 197,000 | |||
| Retained earnings | 650,000 | |||
| Total ownersâ equity | $ | 917,000 | ||
a. Assume the company's stock currently sells for $46 per share and a stock dividend of 5 percent is declared.
How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
New shares issued
Show the new balance for each equity account. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
| Common stock | $ | ||
| Capital surplus | |||
| Retained earnings | |||
| Total ownersâ equity | $ | ||
b. Now assume that instead the company declares a stock dividend of 10 percent.
How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
New shares issued
Show the new balance for each equity account. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
| Common stock | $ | ||
| Capital surplus | |||
| Retained earnings | |||
| Total ownersâ equity | $ | ||
Related questions
The ownersâ equity accounts for Overby International are shown here:
| Common stock ($1 par value) | $ | 40,000 | ||
| Capital surplus | 188,000 | |||
| Retained earnings | 620,000 | |||
| Total ownersâ equity | $ | 848,000 | ||
a. Suppose the company declares a two-for-one stock split.
How many shares are outstanding now? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
New shares outstanding
What is the new par value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
New par value $ per share
b. Suppose the company declares a one-for-five reverse stock split.
How many shares are outstanding now? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
New shares outstanding
What is the new par value per share? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
New par value $ per share
The ownersâ equity accounts for Alexander International are shown here:
| Common stock ($0.50 par value) | $ | 42,500 |
| Capital surplus | 355,000 | |
| Retained earnings | 778,120 | |
| Total ownersâ equity | $ | 1,175,620 |
| a-1 | If Alexander stock currently sells for $20 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? |
| New shares issued |
| a-2 | Show how the equity accounts would change. |
| Common stock | $ |
| Capital surplus | |
| Retained earnings | |
| Total ownersâ equity | $ |
| b-1 | If instead Alexander declared a 20 percent stock dividend, how many new shares will be distributed? |
| New shares issued |
| b-2 | Show how the equity accounts would change. (Negative amount should be indicated by a minus sign.) |
| Common stock | $ |
| Capital surplus | |
| Retained earnings | |
| Total ownersâ equity | $ |
