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Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of

Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend.
The capital accounts for the firm are as follows:
Common stock (2,500,000 shares at $10 par) $ 25,000,000
Capital in excess of par*5,000,000
Retained earnings 24,000,000
Net worth $ 54,000,000
*The increase in capital in excess of par as a result of a stock dividend is equal to the new shares created times (Market price Par value).
The companys stock is selling for $40 per share. The company had total earnings of $10,000,000 during the year. With 2,500,000 shares outstanding, earnings per share were $4. The firm has a P/E ratio of 10.
What adjustments would have to be made to the capital accounts for a 10 percent stock dividend? Show the new capital accounts.
Note: Do not round intermediate calculations. Input your answers in dollars, not millions (e.g. $1,230,000).
What adjustments would be made to EPS and the stock price? (Assume the P/E ratio remains constant.)
Note: Do not round intermediate calculations and round your answers to 2 decimal places.
How many shares would an investor end up with if he or she originally had 140 shares?
Note: Do not round intermediate calculations and round your answer to the nearest whole share.
What is the investor's total investment worth before and after the stock dividend if the P/E ratio remains constant?
Note: Do not round intermediate calculations and round your answers to the nearest whole dollar.

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