Share when the dividend is declared

Assignment Help Financial Management

Reference no: EM132007534

Lawrenceville Co. reported the following: Common stock, $3 par, 10,000 shares authorized, 5,000 shares issued and outstanding What is the effect of a 10% stock dividend if the market price of the common stock is $30 per share when the dividend is declared? a. Additional Paid-In Capital decreases $30,000. b. Cash decreases $30,000. c. Retained earnings in the amount of $15,000 is transferred to the contributed capital accounts. d. A stock dividend has no effect on any stockholders' equity accounts.

Reference no: EM132007534

Questions Cloud

Risk-free rate of interest-what is its beta : Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 14%. What is its beta?

What time frame should she try to reach for emergency fund : What amount and within what time frame should she try to reach for her emergency fund? What type of account would you recommend she hold it in (and why)?

Discuss relevant research on the causation and diagnosis : Personality disorders are chronic and persistent behavioral and emotional disturbances that are often difficult to treat. Some professionals have argued.

What is compelling about the category : Select ONE (1) category from the completed World View Chart. Provide a rationale for choosing this category. What is compelling about this category?

Share when the dividend is declared : What is the effect of a 10% stock dividend if the market price of the common stock is $30 per share when the dividend is declared?

What is expected rate of return on each stock : What are the betas of the two stocks? What is the expected rate of return on each stock if the market return is equally likely to be 5% or 23%?

Discuss the importance of assisstance : I think that the ways in which people think about their drug or alcohol experience plays a role in addiction as well.

Stock is expected to pay constant dividend in perpetuity : Assume that the stock is expected to pay a constant dividend in perpetuity.

Present and future values of a cash flow stream : If other investments of equal risk earn 5% annually, what is its present value? What will be the monthly loan payment?

User Account

All Pages