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Stock splits, stock dividends, reverse stock split

Bermuda Triangle Corporation (BTC) currently has 400,000 shares of stock outstanding that sell for $90.00 per share. Assuming no market imperfections or tax effects exit, what will the share price be after: A. BTC has a five-for-three stock split? B. BTC has a 15 percent stock dividend? C. BTC has 42.5 percent stock dividend? D. BTC has a four-for-seven split? E. Determine the new number of shares outstanding in parts A-D.

Subject:

Business

Topic:

Finance

Posting ID:

19247

OTA ID:

103477

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Stock dividends

The company with the following common equity accounts has declared an 8 percent stock dividend at a time when the market value of its stock is $10.00 per share. What effects on the equity accounts will the distribution of the stock dividend have? Common stock ($1.00 par value): $450,000 Capital surplus: $1,550,000 Retained earnings: $3,000,000 Total owners equity: $5,000,000

Subject:

Business

Topic:

Finance

Posting ID:

19248

OTA ID:

103060

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Residual Dividend Policy

Sheffield, Inc. predicts that earnings in the coming year will be $20 million. There are 8 million shares, and Sheffield maintains a debt-equity ration of 1.4. A. Calculate the maximum investment funds available without issuing new equity and the increase in borrowing that goes along with it. B. Suppose the firm uses a residual dividend policy. Planned capital expenditures total $40 million. Based on this information, what will the dividend per share be? C. In part B, how much borrowing will take place? What is the addition to retained earnings? D. Suppose Sheffield plans no capital outlays for this coming year. What will the dividend be under a residual policy? What will new b... click for more

Subject:

Business

Topic:

Finance

Posting ID:

19250

OTA ID:

103477

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Caculating cost of equity using CAPM (Capital Asset Pricing Model)

Jet Corp. common stock has a beta of 1.27. If the risk-free rate is 5% and the expected return on the market is 13%, what is Jet's cost of equity capital?

Subject:

Business

Topic:

Finance

Posting ID:

19252

OTA ID:

103477

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Calculating Cost of Preferred stock.

Walk me through this problem: A bank has as issue of preferred stock with a $6.50 stated dividend that just sold for $90.00 per share. What is the banks cost of preferred stock?

Subject:

Business

Topic:

Finance

Posting ID:

19253

OTA ID:

103058

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