What is the new par value per share

Assignment Help Financial Management

Reference no: EM13724900

The company with the common equity accounts shown here has declared a 4-for-one stock split when the market value of its stock is $33 per share. The firm’s 80-cent per share cash dividend on the new (post split) shares represents an increase of 25 percent over last year’s dividend on the presplit stock. What is the new par value per share? What was last year's dividend per share?

Common Stock ($1 par value) $415,000

Capital Surplus $852,000

Retained Earnings $3,780,800

Total Owner's Equity $5,047,800

Reference no: EM13724900

Questions Cloud

What is the firms degree of financial leverage : Irresistible Chips is reviewing its financial condition. Sales are $15,667,426 from which the firm generated an operating profit of $2,445,157 and a net profit after tax of $943,674. The firm’s interest expense was $1,192,195.

Calculate the degree of operating leverage : Deci-Bell, Inc. is producing new headphones. Deci-Bell Inc. has a base level of sales of 312,464 units. Sales price per unit is $148.61 and variable cost per unit is $61.52. Total annual operating fixed costs are $6,294,441.

Calculate deci-bells degree of operating leverage : Deci-Bell, Inc. is producing new headphones, but first management wants to determine its degree of operating leverage. Deci-Bell Inc. has a base level of sales of 325,784 units. Sales price per unit is $151.98 and variable cost per unit is $ $69.78. ..

What is the firms break-even point in sales volume : Proper English Tea, Inc. expects to introduce a new line of teapots, but first management wants to determine its break-even point. Proper English Tea’s expected price per unit is $37.08. The company expects to sell 4,018 units. Variable costs per uni..

What is the new par value per share : The company with the common equity accounts shown here has declared a 4-for-one stock split when the market value of its stock is $33 per share. The firm’s 80-cent per share cash dividend on the new (post split) shares represents an increase of 25 pe..

Relate to the airlines overall business strategy : Discuss how successful airlines acknowledge different pricing strategies as they relate to the airline's overall business strategy. Provide an example(s). If possible exclude Southwest airlines in your discussion.

What is the present value of each option : Banks everywhere are offering a rate of 5%. You have just won the $1,000,000 lottery and they are offering you four options to receive your winnings:

Preferred stock currently trades : EcoTours, Inc.'s perpetual preferred stock currently trades at $69.75 per share, and it pays a $1.35 quarterly dividend. If the company were to sell a new preferred issue, it would incur flotation costs of 4.50% of the issue price. What is EcoTours' ..

What is the best estimate of value of sunshines operations : Sunshine Resorts, Inc. is a fast growing hotel chain whose free cash flow (FCF) in the year just ended was $225 (in millions of dollars). Analysts expect the company's FCF to grow by 40% this year, by 25% in Year 2, by 15% in Year 3, and at a constan..

User Account

All Pages