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
What is the term that is concerned with a population's size, age structure, geographic distribution, ethnic mix, and income dist
Rom4ik [11]

Answer:

Demographic segmentation

Explanation:

Demographic segmentation - it is the term used for segmentation of the population on the basis of sex, culture, income, etc. The main reason behind the segmentation of the population is to target the customers according to their needs.  

for example -  if in any locality, the majority of people believing in one culture or having the same status then the corporation must target the customers according to belief or their status. which can be achieved by demographic segmentation.

8 0
3 years ago
Read 2 more answers
Please help meeee!!!!!
mestny [16]

Answer:

Banks are owned by shareholders, while credit unions are owned by members

Explanation:

Banks are financial institutions established by the founders to make profits. Due to their capital requirements, banks are large corporations owned by the private sector or government. Like other corporations, the owners of a bank are its shareholders.

Large organizations form credit unions to cater to their employees well being. Credit unions are not for profit organizations since they are formed to cater to its members' well beings. It means membership to the credit union is limited to the founding organization's employees unless otherwise stated. The members of the credit unions are its owners.

8 0
3 years ago
Which describes the process of diagnosing an organization's external and internal environments, including deciding on a vision a
Rudiy27

Strategic planning

Explanation:

Process to identify the external and internal conditions of the organisation, determine a strategy and goal, formulate general goals, establish and choose general approaches, and allocate resources for the organization's objectives.

Strategic planning is the method of documenting and guiding the small company— by evaluating where they are and where they're going. The strategic plan actually provides them with the opportunity to record the mission, vision and principles and their lengthy-term goals and intervention plans to achieve them.

5 0
2 years ago
Karl Corporation was organized on January 2, 2018. During 2018, Karl issued 40,000 shares at $24 per share, purchased 6,000 shar
labwork [276]

Answer:

The answer is $1,404,000

Explanation:

Total amount realized from the issuance: 40,000 shares x $24

= $960,000

Treasury stock repurchased:

6,000 shares x $26

=$156,000

Net income = $600,000

The total amount of stockholders' equity at December 31, 2018 is:

Net income + amount realized from issuance - amount of treasury stock

$600,000 + $960,000 - $156,000

$1,404,000

3 0
3 years ago
An investment costs $5,200 today. this investment is expected to produce annual cash flows of $2,100, $1,300, $1,800 and $1,200,
worty [1.4K]
5,200 + 21,000 + 1,300 + 1,200 = 10,400 ÷ 10 totally investment 1,040 %
3 0
3 years ago
Other questions:
  • Your project to obtain charitable donations is now 30 days into a planned 40-day project. The project is divided into 3 activiti
    7·1 answer
  • Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 300,000 shares of $10 par common stock and 50,000 shar
    11·1 answer
  • Excerpt from Areojet Corporation Per Unit Per Month Selling price $ 200,000 Direct materials 40,000 Direct labor 10,000 Variable
    15·1 answer
  • Inefficient capitalism socialism or communism
    10·1 answer
  • Productivity is the
    15·1 answer
  • Sterling, Inc. is a manufacturer of state-of-the-art computers. For the past ten years, Sterling has acquired all of its microch
    15·1 answer
  • Allison has worked at an insurance company for several years. Many of her male coworkers have Sports Illustrated calendars, whic
    11·1 answer
  • The tennis club where you play tennis charges $50.00 per month and $10.00 per hour of court time. If your current month's bill i
    9·1 answer
  • Which option identifies the component of the SMART objective (specific, measurable, attainable, realistic, and time-bound) missi
    5·1 answer
  • Write a research paper based on any microeconomics topic that is of particular interest to you. The paper should be at least 5 d
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!