Question
1. The Alpine Aircraft Co. has the following capital structure: Common stock ($2 par) $76 million...
1. The Alpine Aircraft Co. has the following capital structure:
Common stock ($2 par) $76 million
Paid-in capital $817 million
Retained earnings $910 million
Total cap 1.803 bil
- What was the stock price at the time of original issue?
Shares=38m
893m/38m = 23.50
B. Show the capital structure if the firm declares a 5% stock dividend and the current stock price is $58.
Homework Answers
Answer #1
Both of the parts for calculation of stock price and capital structure is provided below
The capital structure after and before stock dividend would remain same as shown below
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