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41.
Which one of the following statements is correct?
42.
Which of the following balance sheet accounts are affected by a small stock
dividend?
I. cash
II. common stock
III. retained earnings
IV. capital in excess of par value
43.
A small stock dividend is defined as a stock dividend of less than _____
percent.
44.
Which one of the following is a result of a small stock dividend?
45.
Which of the following account balance changes occur as a result of a large
stock dividend?
I. increase in common stock
II. decrease in capital in excess of par
III. increase in capital in excess of par
IV. decrease in retained earnings
46.
Revol-Tech is a technology firm with excellent growth prospects. The firm
wishes to do something to acknowledge the loyalty of the shareholders but
needs all of its available cash to fund the firm's rapid growth. The market
price of the stock is currently trading at the upper end of its preferred
trading range. The firm is most apt to consider which one of the following in
this situation?
47.
Which two of the following are the best justifications for a reverse stock
split?
I. combine a reverse stock split with a stock repurchase to enable a firm to
go dark
II. increase the respectability of the stock
III. avoid delisting
IV. reduce transaction costs for shareholders
48.
A stock split:
49.
Stock splits can be used to:
50.
Which one of the following is a direct result of a 2-for-1 stock split?
51.
Sligo Minerals stock is currently trading at $6 a share. The firm believes its
primary clientele can afford to spend between $1,500 and $2,000 to
purchase a round lot of 100 shares. The firm should consider a:
52.
A one-for-four reverse stock split will:
53.
A firm wants to maintain a minimum stock price of $15 a share. Due to a
recent market downturn, the stock is currently selling for $6 a share. The
firm should consider a:
54.
Plyler Cabinets declared a dividend of $1.20 a share on May 15 to holders of
record on Monday, June 1. The dividend is payable on June 15. Sara
purchased 500 shares of Plyler Cabinets stock on Friday, May 29. How
much dividend income will she receive on June 15 from Plyler Cabinets?
55.
Steve purchased 300 shares of Alpha Beta stock on May 9. On May 15, he
purchased another 300 shares and then on May 22 he purchased a final 400
shares of Alpha Beta stock. The company declared a dividend of $1.60 a
share on April 30 to holders of record on Friday, May 23. The dividend is
payable on June 2. How much dividend income will Steve receive on June 2
from Alpha Beta?
56.
On July 7, you purchased 500 shares of Wagoneer, Inc. stock for $21 a
share. On August 1, you sold 200 shares of this stock for $28 a share. You
sold an additional 100 shares on August 17 at a price of $25 a share. The
company declared a $0.95 per share dividend on August 4 to holders of
record as of Wednesday, August 15. This dividend is payable on September
1. How much dividend income will you receive on September 1 as a result of
your ownership of Wagoneer stock?
57.
Webster United is paying a $1.10 per share dividend today. There are
350,000 shares outstanding with a market price of $25 per share. Ignore
taxes. Before the dividend, the company had earnings per share of $1.74. As
a result of this dividend, the:
58.
You own 2,200 shares of Deltona Hardware. The company has stated that it
plans on issuing a dividend of $0.42 a share at the end of this year and then
issuing a final liquidating dividend of $2.90 a share at the end of next year.
Your required rate of return on this security is 16 percent. Ignoring taxes,
what is the value of one share of this stock to you today?
59.
Al owns 800 shares of The Good Life Co. The company recently issued a
statement that it will pay a dividend per share of $0.55 this year and a $0.60
per share dividend next year. Al does not want any dividend income this
year but does want as much dividend income as possible next year. Al earns
9 percent on his investments. Ignoring taxes, what will Al's total homemade
dividend be next year?
60.
Jenningston Mills has a market value equal to its book value. Currently, the
firm has excess cash of $1,200, other assets of $5,800, and equity valued at
$3,750. The firm has 250 shares of stock outstanding and net income of
$420. What will the new earnings per share be if the firm uses 25 percent of
its excess cash to complete a stock repurchase?
