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Bruins Inc. has the following items in their current balance sheet: Common Stock 10,000,000 shares authorized, 1,000,000 issued $3,000,000 Capital Surplus $9,000,000 Treasury Stock on
Bruins Inc. has the following items in their current balance sheet:
Common Stock 10,000,000 shares authorized, 1,000,000 issued $3,000,000
Capital Surplus $9,000,000
Treasury Stock on Common 100,000 shares $6,000,000
Cumulative Preferred Stock 500,000 authorized
[2%] $100 par $8,000,000
Treasury Stock on Preferred Stock 10000 shares $6,000,000
Retained Earnings $60,000,000
- Bruins Inc. wishes to announce a total cash dividend of $40,000,000. How is this dividend to be split between the common and preferred stockholders?
- What is the dividend per share for common and preferred after the dividend distribution from question 1 above?
- Suppose Bruins Inc. was two years in the arrears in paying dividends to the preferred stockholders, and then what is the dollar amount of the preferred and common shareholder dividend?
- How many Bruins common stock shares are outstanding?
- If Bruins Inc. announces a 4 for 1 stock split on the cumulative preferred then what is the new total amount of the preferred stock?
- If Bruins Inc. were to provide for a 10% common stock dividend, then how many new shares are to be mailed to existing shareholders?
- Assume in question [6] the market price of the common stock was $15 at the time of the stock dividend announcement. What is the journal entry to record the stock dividend?
- Using the equity portion of the Bruins Inc. balance sheet above, determine the amount of the total equity in Bruins Inc. Assume this question ignores the results of questions [1-7] above.
- What is the impact of the common and preferred cash dividend [as per question 1 above] on the current balance sheet of Bruins Inc.?
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