Bosley Corporation began business on January 2, 2015. At that time, it issued 1,000,000 shares at a par value of $5 per share. The common shares sold for $8 per share. It did not issue any preferred stock.

1. Using the financial transactions template record the following transactions:

(a) The initial stock sale on January 2, 2015.

(b) On June 15, 2015, Bosley issued an additional 50,000 shares of common when the stock price was $11.50 per share.

(c) On December 10, 2015, Bosley repurchased 150,000 shares of common when the stock price was $7 per share.

2. On June 30, 2016, Bosley paid a cash dividend of $0.30 per share. Record this payment using the financial transactions template. Assume no change to shares outstanding since December 10, 2015. Ignore the balance of retained earnings assume there is enough to pay the dividend.

3. On January 6, 2017, Bosley announced at 2-for-1 stock split when its shares were trading for $20 per share. Using the financial transactions template record the effect of this stock split. If you are an investor in Bosley, what is the direct effect of this stock split on the total dollar value of your investment?

4. Cash dividends, stock dividends, and share repurchases are all considered ways to pay back shareholders. Assuming no difference in the size of the pay back, if you are an investor (in any company), which one of these transactions would you prefer? State specific advantages and disadvantages (to an investor) of each transaction when giving your answer.