(Solution) If A Firm Has Retained Earnings Of $23.9 Million, A Common Shares Account Of $275.9 Million, And Additional Paid-in Capital Of $100. | Snapessays.com


(Solution) If a firm has retained earnings of $23.9 million, a common shares account of $275.9 million, and additional paid-in capital of $100.


If a firm has retained earnings of $23.9 million, a common shares account of $275.9 million, and additional paid-in capital of $100.9 million, how would these accounts change in response to a 20 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.Indicate the direction of the effect by selecting "increase" , "decrease" and "no change" from the dropdown menu.)

 

 

 

 

Retained earnings No Change $

 

Common stock No Change $

 

Additional paid-in capital No Change $

 

 

Next Question

 

 

 

If a firm has retained earnings of $3.9 million, a common shares account of $5.9 million, and additional paid-in capital of $11.8 million, how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Input all amounts as positive values. Indicate the direction of the effect by selecting "increase" , "decrease" and "no change" from the dropdown menu.)

 

 

 

 

Retained earnings decrease to $

 

Common stock increase to $

 

Additional paid-in capital increase to $

 

 

Next question

 

 

Gen Corp. is expected to pay a dividend of $3.40 per year indefinitely. The appropriate rate of return on this stock is 10 percent per year, and the stock consistently goes ex-dividend 30 days before dividend payment date.

 

 

What will be the expected minimum price in light of the dividend payment logistics? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)

 

 

Minimum stock price $

 

 

What will be the expected maximum price in light of the dividend payment logistics? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)

 

 

Maximum stock price $

 

 

 

Next Question

 

 

 

Kenzie Cos. is expected to pay a dividend of $2.15 per year indefinitely. The appropriate rate of return on this stock is 15 percent per year, and the stock consistently goes ex-dividend 30 days before dividend payment date.

 

 

What will be the expected minimum price in light of the dividend payment logistics? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)

 

 

Minimum stock price $

 

 

What will be the expected maximum price in light of the dividend payment logistics? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)

 

 

Maximum stock price $

 


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This question was answered on: May 23, 2022

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