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please help! Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some
please help!
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 $ per share. The company had total earnings of $ during the year. With
shares outstanding, earnings per share were $ The firm has a PE ratio of
a What adjustments would have to be made to the capital accounts for a percent stock dividend? Show the new capital
accounts.
Note: Do not round intermediate calculations. Input your answers in dollars, not millions eg $
b what adjustments would be made to EPS and the stock price? assume the PE ratio remains constant
c how many shares would an investor end up with if he or she originally had shares?
d what is the investor's total investment worth before and after the stock dividend if the PE ratio remains constant?
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