Exam 16: Dividemcqs AMCQ Other Payouts

Cat's has 41,800 shares of stock outstanding with a par value of $1 per share and a market value of $13.57 per share.The balance sheet shows $41,800 in the common stock account,$247,900 in the capital in excess of par value account,and $308,500 in retained earnings.The firm just announced a large stock dividend of 50 percent.What is the value of the retained earnings account after the dividend?

From a tax-paying shareholder's point of view,a stock repurchase

Winslow Co.has 74,200 shares of stock outstanding at a market price of $52 a share.The company just announced a five-for-two stock split.How many shares of stock will be outstanding after the split?

The Retail Outlet has 6,000 shares of stock outstanding with a par value of $1 per share.The current market value of the firm is $120,000.The company just announced a one-for-three reverse stock split.What will the par value per share be after the split?

A firm has a market value equal to its book value,excess cash of $500,other assets of $6,200,and equity of $8,200.The firm has 400 shares of stock outstanding and net income of $680.What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?

The Robert's Co.just paid an annual dividend of $1.49 a share.The firm has a target payout ratio of 0.38 and a speed of adjustment value of 0.7.What is the expected value of next year's annual dividend if the firm expects its earnings per share to be $4.87?

In a reverse stock split,

Assume the stockholders of EX stock are in the 25 percent tax bracket.The closing price of the stock today was $54.15 a share.The firm pays a quarterly dividend of $1.22 per share.What is the expected opening price of the stock tomorrow if tomorrow is an ex-dividend date?

The observed empirical fact that stocks attract particular investors based on the firm's dividend policy and the resulting tax impact on investors is called the

Pete's Pets has 18,500 shares of stock outstanding with a par value of $1 per share and a market price of $21 a share.The firm just announced a three-for-two stock split.How many shares of stock will be outstanding after the split?

A fixed repurchase strategy

The argument that selling stock involves too much leeway is the

Which statement is true?

You currently own 300 shares of Hanover Co.The stock closed at a price of $32.09 a share today.Tomorrow morning,a stock dividend of 8 percent will occur.What will be the change in the value of your investment tomorrow assuming there are no other factors affecting the market price of the stock?

Which one of these can a shareholder use to alter the dividend policy of a firm?

On the date of record,the stock price drop related to the dividend is

Bruno's has 13,000 shares of stock outstanding with a par value of $1 per share and a market value of $38.29 per share.The balance sheet shows $13,000 in the common stock account,$78,300 in the capital in excess of par value account,and $82,500 in retained earnings.The firm just announced a large stock dividend of 40 percent.What will be the balance in the capital in excess of par value account after the dividend?

A reverse stock split associated with a cash buyout is sometimes used as a means of

The Uptowner has 11,000 shares of stock outstanding with a par value of $1 per share and a market value of $14 per share.The balance sheet shows $11,000 in the common stock account,$60,300 in the capital in excess of par value account,and $72,100 in the retained earnings account.The firm just announced a large stock dividend of 65 percent.What is the value of the common stock account after the dividend?

Leslie owns 600 shares of Good Manners stock.The company will pay per share dividends of $1.42 1 year from now and $1.48 2 years from now.Leslie does not want any dividend income 1 year from now but does want as much dividend income as possible the following year.She plans on creating her own homemade dividends and can borrow and lend at 7 percent.Ignoring taxes,what will her homemade dividend per share be 2 years from now?