1st only. On July 1, your company has 400,000 shares of $60 par value common stock that are issuedand outstanding. On September 2, your company splits its stock 3-for-2 and reduces the parvalue to $40 per share. How many shares of common stock are issued and outstandingimmediately after the stock split?For the year 2016, LOOP has 5,400 millions of authorized shares, 2,976 millions of issuedshares, and 776 millions of treasury stock. How many common shares are outstanding as ofDecember 31, 2016?

Stock Split: A stock split occurs when a company reduces the face value of its shares. This has the…

On July 1, your company has 400,000 shares of $60 par value common stock that are issued and outstanding. On September 2, your company splits its stock 3-for-2 and reduces the par walue to $40 per share. How many shares of common stock are issued and outstanding mmediately after the stock split?

On July 1, your company has 400,000 shares of $60 par value common stock that are issued and outstanding. On September 2, your company splits its stock 3-for-2 and reduces the par walue to $40 per share. How many shares of common stock are issued and outstanding mmediately after the stock split?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 5MCQ

See similar textbooks

Related questions

Q: The relationship between financial management and microeconomics

A: Financial management - Financial management refers to making plans, organizing, controlling, and…

Q: Syaherah is applying for a RM50,000 hire purchase from BCD Bank. The interest rate of the loan is 6%…

A: The term charges are the interest amount of a loan. These are calculated on the principal amount of…

Q: Assume you purchased 200 shares of GE common stock on margin at $100/share using 40% margin. How…

A: Solution:- In equity market, margin means the amount of money borrowed from the broker in order to…

Q: Please use this information to answer the question below: A US firm's expected Accounts Receivables…

A: Given: Accounts receivables = EUR 15,000,000 Spot rate 1EURO = USD 1.25 Interest rate in US = 5%…

Q: Explain in details the rationale and the treatment of change in net working capital items during the…

A: NPV: When performing financial research to assess the viability of investing in a project or…

Q: What rate of interest (in %) compounded quarterly will yield an effective interest rate of 8.6%?…

A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…

Q: A 3,000,000 peso loan is to be amortized at 4.55% quarterly for 2 years. Solve for the value inside…

A: Quarterly payment for loan will be, Where, P = Loan amount =3000000 r = Quarterly interest rate =…

Q: 1.2) APR, or stated rate, in each of the following cases: Stated rate (APR) Number of Times…

A: As per Bartleby honor code, when multiple sub-parts of a question are asked, the expert is required…

Q: Here are the cash flows for two mutually exclusive projects: Project C0…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: Suppose the term structure of annualized interest rate is flat at 5%. Consider the following three…

A: Bonds can be defined as investment securities in which the investor lends capital or money to an…

Q: Banana Airways. has an expected EBIT of $1,515,000 in perpetuity and tax rate of 25%. The Banana's…

Q: The total maintenance expense of a certain machine is 15,845 and can be disbursed by paying 3,458 at…

A: Annual equivalent cost is that is equivalent to the cost today considering the interest rate and…

Q: Assume us government's issues 170,000,000 treasury bill for settlement of citizen's claims. So which…

A: Here the government issues 170000000 treasury bills to settle the claim, so we have to decide which…

Q: Jennifer Richards went to her credit union to borrow $5,500 at a rate of 8.11 % p.a. The date of the…

A: Data given: P=Loan amount = $ 5,500 r=Rate= 8.11% p.a. Date of the loan = September 7 Date of…

Q: Heavy Metal Corporation is expected to generate the following free cash flows over the next five…

A: The enterprise value is used to determine the economic value of a company. It gives the whole…

Q: five years: -29.1 percent, 16.4 percent, 35.8 percent, 3.7 percent, and 22.7 percent. The average…

A: Nominal interest rate is interest rate without effect of inflation rate and real interest rate is…

Q: The parents of a 3 year old child decide they need to start saving for their child's college fund.…

A: Here, Future value (FV) = 22,000 Time period = 15 years Interest rate = 3.5% To Find: Present value…

Q: An analyst at PJ Dealers estimates that the CAPM beta for ZLX stock is 1.9. Given this information…

A: Given: Risk free rate = 2% Market rate = 12% Beta = 1.9

Q: Anna-Mae Inc is going to issue a bond whereby they would pay a coupon with rate equal to the markets…

A: Price of bond depends on the coupon rate ,yield to maturity and period of maturity of bond. Price of…

Q: -2 Zeda Enterprises has the option to invest in machinery in projects A and B but finance is only…

A: Pay Back period is a capital budgeting technique under which we will know the period under which our…

Q: How much must Queenie deposit in the bank that pays 10% compounded monthly, so she will have…

A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…

Q: Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought…

A: There are 2 types of cost while evaluating a capital budgeting decision: 1. Sunk cost 2. Relevant…

Q: Under this new and more debt-oriented arrangement, the after-tax cost of debt is 8.8%; the cost of…

A: The question is related to cost of capital. The Weighted Average Cost of Capital WACC is calculated…

Q: uhler Industries is a farm implement manufacturer. Management is currently evaluating a proposal to…

A: NPV It is a capital budgeting tool to decide on whether the capital project should be accepted by…

Q: W of the following engineering project when the MARR IS 1 project acceptable? Investment cost =…

A: Present worth is the difference between the present value of cash inflows and cash outflows. it must…

Q: Aero Motorcycles is considering opening a new manufacturing facility in Fort Worth to meet the…

A: As per the given information: Amount spend for a marketing study - $300,000 Land purchased 5 years…

Q: "The dividend discount model is used to find the price of a stock based on the expected dividends…

A: The Dividend Discount model is used to calculate the Price of share considering time value of money.…

Q: You own a put option on Ford stock with a strike price of $14. When you bought the put, its cost to…

A: Given: Particulars Amount Strike price 14 Stock trading 9 Stock trading 25 Period 6…

Q: What should be the balance in a Registered Retirement Income Fund (RRIF) that w rovide $2,500 at the…

A: More is the compounding of interest more is the interest being accumulated over the period of time…

Q: You go to the loan fund of the company where you work and find that they have an emergency fund…

A: Given, that the payments in month 3,6,9,12 is double than the normal payments in other months.…

Q: This type of risk is related to overall market or the economy and it is Non-diversifiable. However,…

A: Risk is an uncertainty of loss whereas in finance it is related to financial loss. There are two…

Q: These are the objectives of Central Bank of Malaysia based on Central Bank of Malaysia Act 1958…

A: Central bank is referred as the public institution, which helps in managing the nations' currency…

Q: Assume you have $1600 to invest in a 4 year CD with an APR 2.8% compounded daily. When the CD…

A: Certificate of deposit (CD) A certificate of deposit (CD) is a type of savings account where the…

Q: You own a call option on Intuit stock with a strike price of $39. When you purchased the option, it…

A: Data given: Strike price = $39 Cost of option( premium paid) = $7…

Q: Calculate the Payback Period of Project A (expressed in years, months and days).

A: Solution:- Payback period means the period at which the summation of cash flows from a project are…

Q: Another client at ZBX Fin Planning currently has $95,000 in their retirement account that is…

A: Current Amount in account is $95,000 Deposits per month is $950 Interest rate is 10.56% APR…

Q: Assume that your company has the cost of equity of 3% (for the purpose of preventing error carried…

A: Growth rate 0.03227 D1 1.73422 P0 26.78

Q: ants to make a few deposits so that she can withdraw $5000 per year at the end of each year for the…

A: The present value of future cash flow is the equivalent value of money today considering the…

Q: It is desired to determine the present economic value of an old machine by considering of how it…

A: Net Present Value is a technique in Capital budgeting which is used for evaluation of project on the…

Q: The expected market return is E(RM)is estimated to be 12% per annum, while the risk-free return (rf)…

A: Solution:- Capital Asset Pricing Model (CAPM) is the equity model, which computes required return of…

Q: Suppose you purchase a $1000 Face-Value Zero-Coupon Bond with maturity 30 years and yield to…

A: Par Value of Bond is $1,000 Time period is 30 years Yield to maturity is 4% To Find: Price of bond…

Q: 2) An account earns (12) = 2% for the first two years, i(12) = 3% for the net two years, and (12) =…

A: The accumulated value of an annuity is the future value of all the payments that have been made. It…

Q: A contractionary monetary policy decreases interest rates in order to slow the growth of the money…

A: A country's central bank can use a variety of measures known as monetary policy to encourage stable…

Q: You want to save 10,000 for a down payment on a home by making regular monthly deposits over 4…

A: Given: Particulars Amount Down payment(FV) $10,000 Years 4 Interest rate 7.50%

Q: If P100,000 is invested for 6 months at 1.5% per annum, how much interest is earned? P750 P100,750…

A: Interest Earned = Principal Amount * Rate of Interest * Number of months/12

Q: 10 million for a feasibility study. If the company goes ahead with the project, it must immediately…

A: NPV is the net present value that is the difference between the present value of cash flow and…

Q: oman just retired, and has $700,000 to invest. A very safe Certificate of Deposit (CD) account pays…

A: Let x = the CD amount and y = the bond amount. As per case, x+y = 700000 y = 700000 - x

Q: Use the information provided below to calculate the Internal Rate of Return (expressed to two…

A: Internal Rate of return (IRR) is the rate at which the Net present Value (NPV) of the project is…

Q: Wd-20%, Wc= 80% Cost of debt (rd)= 12% wwwww Tax rate= 30% bL=1.2 Plan Alpha 20% debt & 80% equity…

A: Rs or cost of equity using the CAPM Equation = Risk free rate + Beta * Market risk premium WACC or…

Q: A machine with a purchase price of R1 200 000 is estimated to eliminate manual operations by R400…

A: Initial Cost R 12,00,000.00 Saving R 4,00,000.00 Time Period 4 Years

Concept explainers

Balance Sheet Regulations

A balance sheet is a financial statement that shows the position of a company's assets and liabilities on a specific date. The balance sheet is prepared after preparing the statement of profit and loss statement (income statement). The balance sheet and other financial statements differ in the sense that the balance sheet shows the financial position at any given point in time. In contrast, the other financial statements show the financial performance over a particular duration.

Question

1st only.

On July 1, your company has 400,000 shares of $60 par value common stock that are issued
and outstanding. On September 2, your company splits its stock 3-for-2 and reduces the par
value to $40 per share. How many shares of common stock are issued and outstanding
immediately after the stock split?
For the year 2016, LOOP has 5,400 millions of authorized shares, 2,976 millions of issued
shares, and 776 millions of treasury stock. How many common shares are outstanding as of
December 31, 2016?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

During 2012, Ponce Towers issued 30,000 additional shares of common stock on June 1 and 24,000 on November 1. The company earned 602,000 from continuing operations and 28,000 from another segment of the business that was discontinued during the year. Use your completed worksheet to prepare a computation of earnings per share for 2012. Erase any data in the Data Section that are not required for 2012. Save the solution for 2012 as EPS3 and print the results.
According to a company press release, on January 5, 2012, Hansen Natural Corporation changed its name to Monster Beverage Corporation. According to Yahoo Finance, on that day the value of the company stock (symbol: MNST) was $15.64 per share. On January 5, 2018, the stock closed at $63.49 per share. This represents an increase of nearly 306%. A. Discuss the factors that might influence the increase in share price. B. Consider yourself as a potential shareholder. What factors would you consider when deciding whether or not to purchase shares in Monster Beverage Corporation today?
Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?
Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.
Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.
Nutritious Pet Food Companys board of directors declares a 2-for-1 stock split on June 30 when the stocks market value per share is $30. At that time, there are 10,000 shares of $1 par value common stock outstanding (none held in treasury). What is the new par value of the shares and how many shares are outstanding after the split? What is the total amount of equity before and after the split?
Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.
On January 1, 2016, Dexon Corp had 20,000 shares of common shares outstanding. It sold another 2,600 shares on July 1, 2016, and reacquired 600 shares on November 1, 2016. The corp earned P337,600 net income and has 15,000 shares of P10 par value, 6% cumulative preferred stock on which the last dividends were declared in 2012. Select the year's basic earnings per share. a.P15.92 b.15.65, c.15.50, d.15.08
On January 1, 2016, Ben Corporation had 20,000 shares of common shares outstanding. Ben sold another 2,600 shares on July 1, 2016, and reacquired 600 shares on November 1, 2016. Ben corp earned P337,600 net income and has 15,000 shares of P10 par value, 6% cumulative preferred stock on which the last dividends were declared in 2012. Select the year's basic earnings per share. 1.15.92 2.15.65 3.15.50 4.15.08
The Sirap Corp. issued 20000 shares of Common Stock $1 Par at $25 on 1/3/17. The following transactions occurred in 2018. Reacquired 2000 shares of Treasury Stock $40 per share. The Co, then sold 800 shares of the Treasury Stock at $50 per share. C) The Co. then sold 500 shares of the Treasury Stock at $36 per share. How do you Journalize the above 4 Transactions in good form?
Sakura Co. was established on January 1, 2011. On January 1, 2011, Sakura issued 100, 000 common shares for $500,000. The par value of each share is $1. On July 15, Sakura purchased back 2,000 of its own common shares at $6 each. On December 31, 2011, the stock market price of Sakura's common shares was $9 each. What is the balance of Sakura's common stock account on Dec 31, 2011?