Capital surplus-what is new par value per share

Assignment Help Financial Management
Reference no: EM13939337

The owners' equity accounts for Freya International are shown here. Common stock ($.40 par value) $ 32,500 Capital surplus 315,000 Retained earnings 698,120 Total owners’ equity $ 1,045,620

a-1 If Freya declares a four-for-one stock split, how many shares are outstanding now? (Do not round intermediate calculations.) New shares outstanding

a-2 What is the new par value per share? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.) New par value $ per share

b-1 If Freya declares a one-for-five reverse stock split, how many shares are outstanding now? (Do not round intermediate calculations.) New shares outstanding

b-2 What is the new par value per share? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) New par value $ per share References

Reference no: EM13939337

Questions Cloud

What is the value of safeco stock when required return : Financial analysts forecast Safeco Corporation (SAF) growth for the future to be a constant 8 percent. Safeco's recent dividend was $0.88. What is the value of Safeco stock when the required return is 12 percent?"
What is the rate of return on this security : The preferred stock of Er Railroad Ties pays an annual dividend of $8.20 and sells for $51.70 a share. What is the rate of return on this security?
Market risk premium-reward-to-risk ratios : Stock Y has a beta of 1.4 and an expected return of 15.3 percent. Stock Z has a beta of .6 and an expected return of 8.3 percent. If the risk-free rate is 5.4 percent and the market risk premium is 6.4 percent, the reward-to-risk ratios for stocks Y ..
What is the current share price of your stock : You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.40 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $72 per share. The required return on Avondale stock is 20 percent. what is the ..
Capital surplus-what is new par value per share : The owners' equity accounts for Freya International are shown here. Common stock ($.40 par value) $ 32,500 Capital surplus 315,000 Retained earnings 698,120 Total owners’ equity $ 1,045,620. What is the new par value per share? If Freya declares a on..
What rate is the dividend projected to be growing : Shares of Shot Donuts common stock are currently selling for $15. Next year’s dividend is expected to be $1.50 per share and the market rate of return is 10%. At what rate is the dividend projected to be growing?
Annual dividend-policy of increasing the dividend : Walgreens just paid a $3.25 annual dividend. The company has a policy of increasing the dividend by 3.5% annually. You would like to purchase stock in this firm but realize that you will not have the funds to do so for another three years. If you req..
Stock commands a market rate of return : Ross Ice Gardens stock commands a market rate of return of 12.5% per year, pays dividends that are expected to increase by 3% per year, and currently sells for $32 a share. Based on this information, what is the expected amount per share of the next ..
Dividend for foreseeable future : In the last three years, Merry Theaters paid annual dividends of $0.32, $0.42, and $0.50 a share respectively. The company now predicts that it will keep the same dividend for the foreseeable future given that business has leveled off. Given the lack..

Reviews

Write a Review

Financial Management Questions & Answers

  Compute weighted average cost of capital if firms tax rate

Sirom Scientific Solution has $10 million of outstanding equity and $10 million of bank debt. The bank debt costs 7% per year. The estimated equity beta is 2. IF the market risk premium is 8%, and the risk -free rate is 5%, compute the weighted avera..

  Consider an exchange traded put option to sell

Consider an exchange traded put option to sell 100 shares for $30. Give (a) the strike price and (b) the number of shares that can be sold after:

  What is the effective annual interest rate of trade credit

The D.J. Masson Corporation needs to raise $400,000 for 1 year to supply working capital to a new store. Masson buys from its suppliers on terms of 1/10, net 90, and it currently pays on the 10th day and takes discounts. What is the effective annual ..

  What is the target variable cost per mouse

A company believes it can sell 5,500,000 of its proposed new optical mouse at a price of $10.50 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the targ..

  What is the future worth of this investment

Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The system costs $60,000. It has an expected life of 7 years at which time its salvage value will be $7,500. Operating and mainten..

  Enable a company to raise additional equity capital

Which of the following actions will best enable a company to raise additional equity capital, other things held constant?

  Degree of operating leverage

The CFO of Jupiter Jibs (JJ) expects this year's sales to be $2.5 million. EBIT is expected to be $1 million. The CFO knows that if sales actually turn out to be $2.3 million, JJ's EBT will be $888,000. What is JJ's degree of operating leverage (DOL)..

  What are the floatation costs for issuing preferred share

(Cost of preferred stock) The preferred stock of Gator Industries sells for $35.08 and pays $2.71 per year in dividends. What is the cost of preferred stock financing? If Gator were to issue 525,000 more preferred shares just like the ones it current..

  What is allisons cost of new outside equity capital

Allison Engines Corporation has established a target capital structure of 40% debt and 60% common equity. The current market price of the firm's stock is P0 = $36; its last dividend was D0 = $2.80, and its expected dividend growth rate is 8%. What is..

  Discuss the problems that loans tied to a banks base rate

Discuss the problems that loans tied to a bank's base rate present in measuring interest rate risk where the base rate is not tied directly to a specific market interest rate that changes on a systematic basis.

  Ordinary annuity cash flow

What is the future value in 27 years of an ordinary annuity cash flow of $704 every quarter of a year at the end of the period, at an annual interest rate of 8.89 percent per year, compounded quarterly?

  Draw the profit diagrams at maturity

Draw the profit diagrams at maturity for the following portfolios consisting of options. Clearly label all the important points in the diagrams.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd