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all parts please! Ace' Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating
all parts please!
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: "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 company's stock is selling for $20 per share. The company had total earnings of $4,800,000 during the year. With 2,400,000 shares outstanding, earnings per share were $2.00. The firm has a P/E ratio of 10 . a. 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,9.$1,230,000). b. 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. c. How many shares would an investor end up with if he or she originally had 70 shares? Note: Do not round intermediate calculations and round your answer to the nearest whole share. d. 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 Step by Step Solution
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