Problem 14.01 – Sabrina, and Callahan, Inc.
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition and 11th Edition
Determine the stock value on the ex-dividend date for Callahan, Inc.
Determine the stock value on the ex-dividend date for Callahan, Inc.
Determine the total portfolio value on the ex-dividend date.
Determine the ex-dividend price given that the new IRS regulations require that taxes be withheld.
Calculate how many new shares will be distributed after a stock dividend is declared, and determine how the common stock account, the capital surplus account, the retained earnings account and the total owners’ equity would change as a result of the stock dividend.
If the company declares a stock split, determine the new number of shares outstanding and the new par value per share.
Stockton Mineral Operations, Inc. (SMO) or Bermuda Triangle Corporation (BTC) currently has a certain number of shares of stock that sell for a certain price per share. Assuming no market imperfections or tax effects, what will the share price be after:
Calculate the new share price and the new number of shares outstanding for each scenario.
Quin Corp. or Tempest, Inc. has a balance sheet with certain market values for cash, fixed assets, and equity. The company has a certain number of shares of stock outstanding and has declared a dividend of a certain amount per share. The stock will go ex-dividend tomorrow, and any tax effects are ignored. Calculate the stock price today and tomorrow, and determine the balance sheet after the dividends are paid.
NOTE: There are 2 versions of this problem! This version asks you to determine the stock price today and the stock price tomorrow. Then complete a balance sheet for the company.
There are 2 versions of this problem! This version asks you to determine the effect of the transaction on the equity of the firm, the shares outstanding, and the share price after the repurchase.
Determine the ex-dividend price for the manufacturing firm after a stock dividend, which is given as a percentage.
Given the common equity accounts, declared a stock dividend, and share price… find the new shares outstanding and the effect on the accounts. How will the distribution of the stock dividend impact the equity accounts?