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
Cazden Motors' stock is trading at $30 a share. Call options on the company's stock are also available, some with a strike price
slava [35]

Answer:

d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.

Explanation:

A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.

A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.

Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid

wherein CMP=  Current Market Price

A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.

Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.

 

8 0
3 years ago
Data concerning three of the activity cost pools of Salcido LLC, a legal firm, have been provided below: Activity Cost Pool Tota
igor_vitrenko [27]

Answer:

Estimated manufacturing overhead rate (Meeting with clients)= $170 per hour

Explanation:

Giving the following information:

Activity Cost Pool -  Total Cost -  Total Activity

Researching legal issues $ 22,130 and 750 research hours

Meeting with clients $ 1,270,410 and 7,473 meeting hours

Preparing documents $ 93,490 and 5,850 documents

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate (Meeting with clients)= 1,270,410/7,473= $170 per hour

3 0
3 years ago
You purchased shares of stock one year ago at a price of $62.37 per share. During the year, you received dividend payments of $1
andreyandreev [35.5K]

Answer:

real rate of return= 10.93%

Explanation:

The return on equity is the sum of the dividends earned and capital gains made during the holding period of the investment.

Dividend is the proportion of the profit made by a company which is paid to shareholders.  

Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.

Therefore, we can can compute the return on the investment as follows:

Capital gain =  $69.49- 62.37 = 6.92

Dividend -= 1.77

Nominal return on stock= (1.77 + 6.92)/ 62.37 × 100 =  13.93 %

Inflation is the increase in the price level.It erodes the value of money.rise in the price of money  

Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation.  

Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation.  

The relationship between inflation, real return and nominal return rate is given using the Fishers Effect;  

N = ( (1+R) × (1+F)) - 1  

N- nominal rate, R-real rate, F- inflation  

real rate of return = (1.1393)/ (1.027)- 1 = 0.1093

real rate of return = 0.1093 × 100 = 10.93%

real rate of return= 10.93%

8 0
3 years ago
An amortized loan: Multiple Choice requires the principal amount to be repaid in even increments over the life of the loan. may
babymother [125]

Answer:

The correct answer is: may have equal or increasing amounts applied to the principal from each loan payment.

Explanation:

Amortization can be defined as the process of spreading out the loan in monthly payments. An amortized loan has scheduled periodic payments for both interests as well as principal. If the payments for each period are equal it is called a fully amortized loan.

In amortized loans the interest is paid off first then the amount excess of interest reduces the principal. A common example of amortized loans is auto loans, home loans.

The payments for amortized loans can be equal or unequal for each period.

7 0
3 years ago
Is there a passive form of perfect continuous tense? ​
ZanzabumX [31]
In passive sentences , the subject receives the action verb . The most commonly used verb tenses for this form are present continuous and past continuous. For now let’s keep going with the present continuous
3 0
3 years ago
Other questions:
  • Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to cater to its rapidly increasing number of p
    8·1 answer
  • The numbers on the bottom of a typical check represent all of the following EXCEPT? A Social Security Number B Routing Number C
    15·2 answers
  • The following information has been taken from the ledger accounts of Bridgeport Corporation.
    7·1 answer
  • When preparing the statement of cash flows by the indirect method, if accumulated depreciation increases the difference is
    10·2 answers
  • In the context of opportunity identification and selection, DuPont's discovery of Surlyn, a material with hundreds of potential
    11·2 answers
  • Substitution bias is a problem when measuring the consumer price index because A) consumers are eager to buy new products as the
    6·1 answer
  • Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: Alter
    9·1 answer
  • The weekly demand is 200 units . The cost to place an order is $2.00, and the time from ordering to receipt is four weeks. The w
    7·1 answer
  • When cash is received from a stockholder in exchange for common stock, the transaction is recorded by debiting Cash and creditin
    15·1 answer
  • If the potential gross rental income from a property is $20,000, the vacancy rate is 5 percent, and the additional income from t
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!