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
user100 [1]
3 years ago
8

Suppose the stock of Host Hotels​ & Resorts is currently trading for per share. a. If Host issued a stock​ dividend, what wo

uld its new share price​ be? b. If Host does a​ 3:2 stock​ split, what would its new share price​ be?
Business
1 answer:
gayaneshka [121]3 years ago
3 0

Answer:

A. $16.67 per share

B. $13.33 per share

C. $60.00 per share

Explanation:

a. Calculation to determine what will its new share price be If Host issued a 20% stock dividend

Using this formula

New share price (stock dividend) = Old price / (1 + Stock dividend rate)

Let plug in the formula

New share price (stock dividend) =$20/(1+0.20)

New share price (stock dividend) =$20/1.20

New share price(stock dividend) =$16.67 per share

Therefore If Host issued a stock​ dividend, its new share price will be $16.67 per share

b. Calculation to determine what will its new share price be If Host does a 3:2 stock split

Using this formula

New share price=Old price/Stock split

Let plug in the formula

New share price=$20/(3/2)

New share price=$20/1.5

New share price= $13.33 per share

Therefore If Host does a 3:2 stock split its new share price will be $13.33 per share

c. Calculation to determine what will its new share price be If Host does a 1:3 reverse split

Using this formula

New share price=Old price/Reverse split

Let plug in the formula

New share price=$20/(1/3)

New share price=$20/0.33333

New share price= $60.00 per share

Therefore If Host does a 1:3 reverse split its new share price will be $60.00 per share

You might be interested in
The following summarized data (amounts in millions) are taken from the September 27, 2014, and September 28, 2013, comparative f
Anarel [89]

Answer:

Apple Inc.

a. Calculate Apple Inc.'s working capital, current ratio, and acid-test ratio at September 27, 2014, and September 28, 2013. (Round your ratio answers to 1 decimal place. Enter "Working capital" in million of dollars.)

September 2014:

a) Working Capital = Current Assets - Current Liabilities

= $45,660,000 - $34,978,000 = $10,682,000

b) Current Ratio = Current Assets / Current Liabilities

= $45,660 / $34,978 = 1.3 : 1

c) Acid-Test Ratio = Current Assets - Inventory / Current Liabilities

= $45,660 - 930 / $34,978 = 1.3 : 1

September 2013:

a) Working Capital = Current Assets - Current Liabilities

= $41,940,000 - $21,160,000 = $20,780,000

b) Current Ratio  = Current Assets / Current Liabilities

= $41,940 / $21,160 = 2 : 1

c) Acid-Test Ratio Current Assets - Inventory / Current Liabilities

= $41,940 -1,200 / $21,160 = 1.9 : 1

b. Calculate Apple's ROE for the years ended September 27, 2014, and September 28, 2013. (Round your answers to 1 decimal place.)

September 2014

ROE = Net Income/Equity x 100 = $26,050/$77,290 x 100 = 33.7%

September 2013

ROE = Net Income/Equity x 100 = $14,160/$48,050 x 100 = 29.5%

c. Calculate Apple's ROI, showing margin and turnover, for the years ended September 27, 2014, and September 28, 2013. (Round "Turnover" answers to 2 decimal places. Round your percentage answers to 1 decimal place.)

September 2014

ROI = Margin x Turnover = Net Operating Income/Sales x Sales/Average Assets

= ($33,950/$108,400) x ($108,400/$120,880)

= 0.31 x 0.90

= 0.279 = 27.9%

Average Assets = $120,880 ($147,820 + 93,940) /2

September 2013

ROI = margin = turnover = Net Operating Income/Sales x Sales/Average Assets

= ($18,530/$65,370) x ($65,370/$70,880)

= 0.28 x 0.92

= 0.258 = 25.8%

Average Assets = $70,880 ($93,940 + 47,820) /2

Explanation:

<h3>Apple Inc. </h3><h3>Income Statement</h3>

For the Fiscal Years Ended September 27 and September 28, respectively:

                                                             2014                2013

Net sales                                           $108,400            $65,370

Costs of sales                                      64,580              39,690

Operating income                               33,950               18,530

Net income                                       $26,050              $14,160

Balance Sheet:

Assets

Current assets:

Cash and cash equivalents                                            $9,580      $10,630

Short-term marketable securities                                   16,280         14,510

Accounts receivable, less allowances of $84 & $99     5,520          5,670

Inventories                                                                           930           1,200

Deferred tax assets                                                          2,170            1,780

Vendor non-trade receivables                                       6,500           4,560

Other current assets                                                      4,680           3,590

Total current assets                                                     45,660          41,940

Long-term marketable securities                               85,770          25,540

Property, plant, and equipment, net                            7,930          22,670

Goodwill                                                                         1,060               890

Acquired intangible assets, net                                   3,690               490

Other assets                                                                  3,710              2,410

Total assets                                                             $147,820        $93,940

Liabilities and Shareholders Equity

Current liabilities:

Accounts payable                                                     $14,780          $12,160

Accrued expenses                                                      9,400             5,870

Deferred revenue                                                       4,250              3,130

Commercial paper                                                      6,548             0

Total current liabilities                                              34,978             21,160

Deferred revenue: noncurrent                                   1,840              1,290

Long-term debt                                                        23,452            17,760

Other noncurrent liabilities                                      10,260             5,680

Total liabilities                                                          70,530           45,890

Shareholders' Equity:

Common stock and additional paid-in capital,$0.00001

par value, 1,900,000 shares authorized; 929,430 & 916,130

shares issued & outstanding, respectively            13,490             10,810

Retained earnings                                                  63,200           37,320

Accumulated other comprehensive income (loss)    600                (-80)

Total shareholders' equity                                     77,290           48,050

Total liabilities & shareholders' equity              $147,820        $ 93,940

At September 29, 2012, total assets were $47,820 and total shareholders' equity was $31,800.

b) Working Capital is the excess of current assets over current liabilities.  It shows the amount of finance needed for meeting day-to-day operations of an entity.  Working capital measures a company's liquidity, operational efficiency, and its short-term financial health.  A healthy entity has some excess of current assets over current liabilities in order to continue to run the business operations in the short-run.  Working capital can also be measured in relative terms with the use of ratios, especially the current ratio and the acid-test ratio.

c) ROE means Return on equity.  It is a financial performance measure calculated by dividing net income by shareholders' equity.   Since shareholders' equity is equal to a company's assets minus its debt, ROE is considered as the return on net assets.  As with return on capital, a ROE measures management's ability to generate income from the equity available to it.

d) Return on Investment (ROI) is a financial performance measure which evaluates the efficiency of an investment or compares the efficiency of a number of different investments.  ROI tries to directly measure the amount of return on a particular investment, relative to the investment's cost.  As a financial metric, it measures the probability of gaining a return from an investment.

6 0
3 years ago
The positive relationship between price and quantity supplied, other things being equal, is considered to be:________
Bas_tet [7]

Answer:

The answer is D.

Explanation:

The correct answer is D. universally true for all markets

Other things being equal, as the price of goods and services increase, producers/firms tend to produce more(this is the popular law od supply) inorder to take advantage of the high revenue.

Unlike demand, for supply, price and quantity supplied are directly related.

4 0
2 years ago
Normally, mortgage brokers have nothing to lose by encouraging you to get a bigger loan than you may be able to afford.
jasenka [17]
The answer is true because
3 0
2 years ago
What event changed the laws in the US about companies bribing officials?
Margaret [11]
The Watergate scandal is what changed the laws in the US about companies bribing officials.
4 0
3 years ago
Bundle A is strictly preferred to bundle B, and bundle B is strictly preferred to bundle C. If the utility associated with B is
Nadya [2.5K]

Answer: (63, 50, 44)

Explanation:

Utility is the satisfaction that we derive as consumers when we consume or use a certain product.

Since Bundle A is strictly preferred to bundle B, and bundle B is strictly preferred to bundle C, it means that the value of Bundle A must be more than B and C while that of Bundle B must be more than bundle C.

Therefore, the correct option is B which is (63, 50, 44)

3 0
2 years ago
Other questions:
  • What to do if you lose your planet fitness card?
    6·1 answer
  • The inflation premium: A. increases the real return. B. is inversely related to the time to maturity. C. remains constant over t
    15·1 answer
  • Who helps the offender is helped through the case and is charged with protecting the rights of the offender?
    9·2 answers
  • _____ refers to the systematic process of regulating a company's activities to make them consistent with the expectations establ
    9·1 answer
  • A firm has a market value equal to its book value. Currently, the firm has excess cash of $900 and other assets of $5,100. Equit
    7·1 answer
  • "many business professions use the skill of​ __________ in order to work together and complete complex tasks."
    14·1 answer
  • Your product has been suffering from steadily eroding sales. You have tried a number of options to revitalize the product's sale
    8·1 answer
  • Jill buys a refrigerator and pays the company to have it delivered. While the contract covers both a good and a service, this tr
    9·1 answer
  • chapter 13Identify the type of cash flow activity for each of the following events (operating, investing, or financing). The com
    11·1 answer
  • The bank statement reveals an eft payment made to one of the company's suppliers that has not yet been recorded in the journal.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!