Demonstrate the impact of share split on stockland ltd

Assignment Help Accounting Basics
Reference no: EM133011454

Question - Stockland Ltd had a total net profit of $19 million this year and 15 million common shares outstanding. Its ordinary share is currently trading at $35. Stockland Ltd. has recently declared an 8% share bonus.

Required -

a. Show the impact of the share bonus on Stockland Ltd's outstanding shares and current market share price.

b. Assume that instead of a share bonus, Stockland Ltd announces a 7 to 5 share split. Demonstrate the impact of share split on Stockland Ltd's outstanding shares and current market share price.

c. From shareholders' perspective, will they prefer a share bonus or a share split? Explain.

Reference no: EM133011454

Questions Cloud

Importance of studying human behavior : 1. As a college student, what is the importance of studying Human Behavior?
What share price would you expect : If Coca-Cola's equity cost of capital is 8%, what share price would you expect based on your estimate of the dividend growth rate
Which amount computed using horizontal analysis for lanson : Which would be an amount computed using horizontal analysis? What amount should be included in the current liabilities section of Lanson's December 31, 2021?
Concepts of health-health determinants-health policymaking : What connections do you see between the concepts of health, health determinants, and health policymaking?
Demonstrate the impact of share split on stockland ltd : Assume that instead of a share bonus, Stockland Ltd announces a 7 to 5 share split. Demonstrate the impact of share split on Stockland Ltd's outstanding shares
Markov analysis exercise : Based on the information provided, develop an action plan for hiring for the company next year, including an overview of individuals needed. What further recomm
Attracting talent to organizations : Many human resource professionals begin their careers as recruiter. This tendency means that in many cases, the most junior HR people are responsible for attrac
What amount should be included in the current assets section : Investments consist of treasury bills, What amount should be included in the current assets section of Janson's December 31, 2021, balance sheet?
What is professional development plan : Browning & Van Velsor (2004) argue effective employee development needs three ingredients: assessment of the employee's strengths & weaknesses, a challenging le

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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