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
Sholpan [36]
3 years ago
7

Happy Monkey Manufacturing currently has 20,000 shares of common stock outstanding. Its management believes that its current sto

ck price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of 4 for 1 as described in the animation. If Happy Monkey Manufacturing declares a 3-for-l stock split, what will be the price of the company's stock after the split, assuming that the total value of the firm's stock remains the same after the split, will be_____.
Scorecard Athletics Corp. is one of Happy Monkey's leading competitors. Scorecard's market intelligence research team shares Happy Monkey's plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Scorecard decide to offer stock dividends to its shareholders. Scorecard currently has 1, 900,000 shares of common stock outstanding. If the firm pays a 6% stock dividend, what will be the total number of shares outstanding after the stock dividend?
a. 2, 215, 400 shares
b. 2, 014,000 shares
c. 1, 812, 600 shares
d. 1, 711, 900 shares
Business
1 answer:
Margarita [4]3 years ago
3 0

Answer:

1) $30

2) 2,014,000 shares

Explanation:

1). A 4 for 1 stock split means that for every one stock outstanding, there would be two stocks outstanding port the split. However, the value of the firm is not increased here. So, the value of firm won't change

Value of firm pre-split = Value of firm post-split

Therefore,

Number of shares pre-split * Share Price pre-split = Number of shares post-split * Share Price post-split

1 * $90 = 3 * Share price post-split

Solve for share price post slip:

Share price post-split = $90/3 = $30

2) Number of shares post stock dividend = Number of shares pre stock dividend * (1 + Dividend %)

Number of shares post stock dividend = 1,900,000 * (1 + 6%) = 2,014,000 shares

You might be interested in
A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) $90,000 Production
umka21 [38]

Answer:

d.$18,900

Explanation:

Gross Profit is the net of Sales value and production cost in the period for the units sold. Under absorption costing all the direct and indirect costs incurred in the production of products are included in the total production cost. As the cost is available for 100 units produced we need to calculate the cost of 90 unit and deduct this cost from the sales value to determine the gross profit and then deduct the operating expenses to calculate the operating income.

Sales (90 units)                                                                  $90,000

Less: Production costs:

Direct materials ( $40,000 x 90/100 )              $36,000

Direct labor ( 20,000 x 90/100 )                       $18,000

Variable factory overhead ( 2,000 x 90/100 ) $1,800

Fixed factory overhead ( 7,000 x 90/100 )      <u>$6,300</u>

Total Production cost                                                       <u>($62,100)</u>

Gross Profit                                                                        $27,900

Less Operating expenses:

Variable operating expenses $8,000

Fixed operating expenses      $1,000

                                                                                          <u>($9,000)</u>

Operating Income                                                             <u>$18,900</u>

6 0
3 years ago
A target income refers to: ?a. income at the break-even point.?b. income from the most recent period.?c. income planned for a fu
Shkiper50 [21]
The target income refers to the income planned for the future. The answer is letter C. This type of income is expected by the management at a given specified accounting period. This now would direct the key functions of the management in relation to the action that it will do to achieve the certain income. 
5 0
3 years ago
To​ economists, the social cost of unions depends primarily on
Arisa [49]
To economist, the social cost of union depends primarily on the people. People do not start their lives with fully developed theories about systems of society where unions are formed to fight for socialism. This organize monopolies to break down competition. 
4 0
3 years ago
Which three approaches to management are considered historical perspectives?
cestrela7 [59]
The three approaches to management which are considered to be historical perspectives are:
1. The classical view point: this emphasize finding ways to manage work more efficiently.
2. The behavioral view point: emphasize the need to understand human behavior and to encourage employees toward achieving the company's goals.
3. The quantitative view point: this emphasizes the application of quantitative measures to management.<span />
7 0
3 years ago
Some economists believe that permanently lower marginal income tax rates __________ the incentive to work and thus shift the ___
gtnhenbr [62]

Answer:

The answer is "increase; LRAS curve to the right".

Explanation:

The curve LRAS represents the flow between all the level of wages and economic GDP supplied because all prices are fully flexible, also with nominal salaries; its cost may change all along LRAS, however, the output cannot, as it represents the complete output of workers, that's why the several economists say that lower marginal rate consistently increases the motivation to work, shifting the LRAS curve to the left.

6 0
2 years ago
Other questions:
  • Candy is trying to decide between two job offers. The compensation package for job A includes a $300 per-month health insurance
    6·1 answer
  • As dvds become popular substitutes for video cassettes, demand for video cassettes is likely to
    14·1 answer
  • Esther is ninety years old, but she still shops for her own groceries every morning. When Esther was younger, she would head to
    12·1 answer
  • Unsystematic Risk:a. can be effectively eliminated by portfolio diversificationb. is compensated for the risk premiumc. is measu
    13·1 answer
  • Money is to food as ________ is to ________.
    11·1 answer
  • The standard deviation of a portfolio:
    11·1 answer
  • A life insurance salesperson who takes advantage of the foot-in-the-door phenomenon would be most likely to
    10·1 answer
  • Who is responsible for following label instructions for using animal care products, or medications in the food supply continuum?
    5·1 answer
  • Ross Wrigley refuses to buy the Billy Goat brand of beer. His attitude toward this brand is called
    14·1 answer
  • Tyrell Corporation, headquartered in Indiana, and Blender Corporation, headquartered in Michigan, entered into a contract with a
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!