Assume that you have $1,000 to ifivest. You putchased 200 shares of 5 miley incorporated, a smali but. growing company. Over the three years that you have owned the stock, the corporation's board of ditectors has taken the following actions: 1. Declared a 2-for-1 stock spitt. 2. Declared a 20 percent stock dividend. 3. Declared a 3-for-1 stock split. The current price of the stock is $12 per share. a. Calculate the current namber of shares and the market value of your investment. b. Explain the likely reasan the board of directers of the company has not declated a cash dividend. c. State your opinion as to whether or not you would have been better off if the board of directors had declared a cash divitfend instead of the stock dividend and stock splits 2. WHERETO FIND FINANCIAL INFORMATION You have new leamed about the following financial statements issued by corporations: balance sheet, income statement, statement of retained earnings, statement of stockholders' equity, statement of comprehensive income, and statement of cash flows. Listed below are various items frequently of interest to a corporation's owners, potential investors, and creditors, among others. You are to specify which of the above corporate financial statements, if any, reports the desired informatian. If the listed item is not reported in any formal financial statement issued by a corporation, indicate an apptopriate soutce for the desired information. a. Number of shares of stock outstanding as of vear-end. b. Total dolar amount of cash dividends declared during the current year. c. Market value per share at balance sheet date. d. Cumulative dollar effect of an accounting error made in a previous year. e. Detailed disclosure of why the number of shares of stock outstanding at the end of the current year is greater than the number of shares of stock outstanding at the end of the prior yeat. f. Eamings per share of common stock. B. Book value per share. h. Price-eamings (p/e) ratio. L. The total amount the corporation paid to buy back shares of its own stock, which it now holds. 1. Change in the fair market value of available-for-sale itrvestments Assume that you have $1,000 to ifivest. You putchased 200 shares of 5 miley incorporated, a smali but. growing company. Over the three years that you have owned the stock, the corporation's board of ditectors has taken the following actions: 1. Declared a 2-for-1 stock spitt. 2. Declared a 20 percent stock dividend. 3. Declared a 3-for-1 stock split. The current price of the stock is $12 per share. a. Calculate the current namber of shares and the market value of your investment. b. Explain the likely reasan the board of directers of the company has not declated a cash dividend. c. State your opinion as to whether or not you would have been better off if the board of directors had declared a cash divitfend instead of the stock dividend and stock splits 2. WHERETO FIND FINANCIAL INFORMATION You have new leamed about the following financial statements issued by corporations: balance sheet, income statement, statement of retained earnings, statement of stockholders' equity, statement of comprehensive income, and statement of cash flows. Listed below are various items frequently of interest to a corporation's owners, potential investors, and creditors, among others. You are to specify which of the above corporate financial statements, if any, reports the desired informatian. If the listed item is not reported in any formal financial statement issued by a corporation, indicate an apptopriate soutce for the desired information. a. Number of shares of stock outstanding as of vear-end. b. Total dolar amount of cash dividends declared during the current year. c. Market value per share at balance sheet date. d. Cumulative dollar effect of an accounting error made in a previous year. e. Detailed disclosure of why the number of shares of stock outstanding at the end of the current year is greater than the number of shares of stock outstanding at the end of the prior yeat. f. Eamings per share of common stock. B. Book value per share. h. Price-eamings (p/e) ratio. L. The total amount the corporation paid to buy back shares of its own stock, which it now holds. 1. Change in the fair market value of available-for-sale itrvestments
