Question

Company x has 950,000 shares of stock outstanding. A share of stock currently trades for $112.26. Suppose that company x decides to approve an 18% stock dividend. How many shares would company X have after the stock dividend and what would the share price be?

Answer #1

Suppose that a company currently trades for $35.25 per share and
has 4,000,000 shares outstanding. The firm has 6 directors up for
election this year. If the firm uses straight voting, how many
shares will you need to purchase if you already own 500,000 shares.
(Enter a whole number)

Suppose an all-equity financed company has 400,000 shares of
stock currently outstanding. Each share currently has a true value
of $40. Suppose the company uses internal cash to repurchase100,000
shares of stock at the following prices: $50, $40, and $30.What
will be the effect of each of these alternative repurchase prices
on the final(i.e., after the market realizes the true value of
shares) market price of the shares? (Ignore issues such as taxation
and transactions costs).

Air Taxi, Inc. currently has 576,000 shares of stock outstanding
that sell for $97 per share. Assuming no market imperfections or
tax effects exist, what will the share price be after:
BTC has a three for one stock split?
BTC has a 18 percent stock dividend?
BTC has a 51.6 percent stock dividend?
BTC has a three-for-six reverse stock split?
Determine the new number of shares outstanding in parts (1)
through (4).

Excellent Corporation has 10,000 shares outstanding and a share
currently sells for $40 per share. Excellent is short of cash, so
they have decided to issue a 12% stock dividend. Angela owns 300
shares of Excellent.
What is the value of Angela’s investment in Excellent
BEFORE the dividend?_________
How many shares will Angela own AFTER the
dividend? _____________
What will each share be worth AFTER the
dividend? ____________
What will be the total value of Angela’s investment
AFTER the dividend?...

A company at present has 250,000 shares of stock outstanding
that sell for $15 per share. Assuming no market imperfection or tax
effects exist.
if the company has 10% stock dividend announcement?
a) Determine the new number of shares outstanding after the
dividend announcement?
b) what is the new stock price per share after the stock
dividend announcement?

ABC Company currently has 310,000 shares of stock outstanding
that sell for $94 per share. Assume no market imperfections or tax
effects exist.
Determine the share price AND new number of shares outstanding in
each of the following independent situations: (Do not round
intermediate calculations. Round your price per share answers to 2
decimal places, e.g., 32.16, and shares outstanding answers to the
nearest whole number, e.g., 32.)
a. ABC has a five-for-three stock split.
b. ABC has a 11...

Lenix is planning on merging with Kelly Company. Lenix currently
has 80,000 shares of stock outstanding at a market price of $31.50
a share. Kelly Company has 52,000 shares outstanding at a price of
$26.00 a share. The merger will create $440,000 of synergy. How
many of its shares should Lenix offer in exchange for all of Kelly
Company share if it wants its acquisition cost to be
$1,450,000?
40,117
40,316
40,425
40,531
40,682

Acme Inc. currently has 500,000 common shares outstanding that
are currently trading at $35 per share. When the shares were
originally issued one year ago, their price was $20. The Beta of
the company is 1.1 and the market risk premium is 4.5%. The company
also has 250,000 shares of preferred stock outstanding for which it
pays an annual dividend of $2.50 per share. These preferred shares
currently trade at $60 per share. Acme has also just issued 1,500
bonds...

bellhaven corp currently has 16,000 shares outstanding that sell
for $48 per share. the company plans to issue a stock dividend of
12.5 percent. the stock has a par value of $2. what is the total
capital surplus on the new shares?

Great Lake Corp. currently has 20,000 shares of common stock
outstanding. The company plans to build a new distribution center
in Northern Ohio and needs to raise another $200,000. The company
decides to issue total of $200,000 preferred stocks with 5%
preferred stock dividend. If this option can help to boost the EBIT
to $1,000,000, and tax rate of 50%, determine the earnings per
share for this option.

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