1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
stepladder [879]
3 years ago
15

The board of directors of McKay Company has approved a 20% stock dividend. The firm currently has net income of $900,000. There

are 300,000 common shares outstanding and the stock has a P/E ratio of 8. What will be the firm's common stock price after the stock dividend? Group of answer choices
Business
1 answer:
nlexa [21]3 years ago
6 0

Answer:

$20

Explanation:

Current Stock Price:

= (Net income ÷ common shares outstanding) × P/E ratio

= (900,000 ÷ 300,000) × 8

= $24

No of Stock Dividend issued:

= common shares outstanding × Percent of stock dividend approved

= 300,000 × 20%

= 60,000

No of Outstanding Sharing share after stock dividend:

= common shares outstanding + No. of Stock Dividend issued

= 300,000 + 60,000

= 360,000

Common stock price after the stock dividend:

= = (Net income ÷ common shares outstanding after stock dividend) × P/E ratio

= (900,000 ÷ 360,000) × 8

= $20

You might be interested in
1. A manager uses the following equation to predict monthly receipts: Y=450+10t time in weeks and y = receipts.) What is the for
Degger [83]

Answer:

1. 690

2. Do not reject the null hypothesis.

Explanation:

1. Month       t

At the end of Feb    6

March                       4

April                          4

May                           4

June                          2

14th of July               2

Total                         24

Therefore on 14th July, t = 24

Forecast: Y = 450+10t = 450 + 10*24 = 450+240 = 690

2. Options are <em>"a. Reject the null hypothesis. b. Do not reject the null hypothesis. c. Take a larger sample. d. Reserve judgment"</em>

In general, if test statistic is more extreme than the critical values at given level of significance then we reject the null hypothesis otherwise we do not reject the null hypothesis.

Here, test statistic for the given two tailed test is Z = -1.07 and critical value at level of significance α = 0.5 is ± 1.96 . Since -1.96<Z<1.96, we can say that we do not reject Null Hypothesis as the test statistic is not extreme than the critical value at given level of significance.

7 0
3 years ago
Which of the actions must be taken if a municipality wishes to raise its debt limit?
kaheart [24]

Answer:

Public referendum

Explanation:

Public referendum

Raising debt limit is not one side decision it always been bilateral decision between public and government. it is done to raise the treasury of government. it is yearly program which may be initiate on the basis of condition of municipality funds. therefore it need referendum from public side to decide whether to increase the debt limit or not

4 0
3 years ago
Entrepreneurial judgment Group of answer choices is necessary to make business decisions when no fixed decision rule can be used
Mila [183]
Which behavior would best describe someone who has good communication skills with customers ? a) Following up with some customers b) Talking to customers more than listening to them c) Repeating back what the customer says d) Interrupting customers frequently
4 0
3 years ago
Match the term to the example
topjm [15]

Answer:

li siento no puesobhsdar las resouestav

3 0
3 years ago
Wiggins Company has 1,000 shares of $10 par preferred stock, which were issued at par. It also has 25,000 shares of common stock
Ugo [173]

Answer:

Book value par common share will be $19.6

Explanation:

We have given number of preferred stock = 1000

Value of preferred stock = $10 par preferred stock

So preferred Stock = 1000 x $10 = $10000

Total Stockholder's equity = $500000

Thus Common stock value = $500000 - $10000 = $490000

Total number of common stock = 25000 shares

So the book value per common share is = \frac{490000}{25000}=19.6

5 0
3 years ago
Other questions:
  • City Movers announced that its next annual dividend will be $.40 a share. The following dividends will be $.60, and $.75 a share
    8·1 answer
  • Alyssa's monthly mortgage costs are lower than those of her neighbor, Steven. Steven doesn't understand how this is possible bec
    9·2 answers
  • Which loan type requires you to make loan payments while you’re attending school?
    7·1 answer
  • Grant Manufacturing purchased $10,000 of merchandise inventory on account from a vendor and was billed $300 for freight. The cre
    13·1 answer
  • Shen is interning to become a nurse. Mila is a very skilled and helpful nurse, but also very busy. Shen was glad to have the cha
    9·1 answer
  • On December 1, Victoria Company signed a 90-day. 8% note payable, with a face value of $16, 200. What amount of interest expense
    6·1 answer
  • g The balance in Accounts Receivable at the beginning of the year amounted to $16,000. During the year, $64,000 of credit sales
    14·2 answers
  • What happens when u eat too much hot cheetos.....asking for a friend​
    15·1 answer
  • What influences the behavior of employees and gives confidence to the strategic teams that make things happen?
    5·1 answer
  • TB MC Qu. 11-59 (Static) A limitation of the internal rate of return... A limitation of the internal rate of return method is th
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!