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Question 7 ans 8 are togethere, in order ti answer 8 you need to answer 7

all the information is in the question 7

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LO 4 8. Share Repurchase in the previous problem, suppose the company has announced it is going to repurchase $21,850 worth of stock instead of paying a dividend. What effect will this transaction have on the equity of the firm? How many shares will be outstanding? What will the price per share be after the repurchase? Ignoring tax effects, show how the share repurchase is effectively the same as a cash dividend. 7.Regular Dividends The balance sheet for Tempest, Inc., is shown here in market value terms. There are 19,000 shares of stock outstanding. 1 Market Value Balance Sheet $120,000 Cash Fixed assets 476,600 $596,600 $596,600 Equity Total $596,600 Total The company has declared a dividend of $ 1.15 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? 03 6. Stock Splits and Stock Dividends Bermuda Triangle Corporation (BTC) currently has 395,000 shares of stock outstanding that sell for $83 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. BTC has a five-for-three stock split? b. BTC has a 15 percent stock dividend? c. BTC has a 42.5 percent stock dividend? d. BTC has a four-for-seven reverse stock split? e. Determine the new number of shares outstanding in parts (a) through (d). PTER 14 Dividends and Dividend Policy 483 LO 3 5. Stock Splits For the company in Problem 4. show how the equity accounts will change if: a. The company declares a two for one stock split. How many shares are outstanding now? What is the new par value per share? b. The company declares a one-for-five reverse stock split. How many shares are outstanding now? What is the new par value per share? LO 3 6. Stock Splits and Stock Dividends Bermuda Triangle Corporation (BTC) currently has 395,000 shares of stock outstanding that sell for $83 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. BTC has a five-for three stock split? b. BTC has a 15 percent stock dividend? c. BTC has a 42.5 percent stock dividend? d. BTC has a four-for-seven reverse stock split? e. Determine the new number of shares outstanding in parts (a) through (d). L01 7. Regular Dividends The balance sheet for Tempest, Inc., is shown here in market value terms. There are 19,000 shares of stock outstanding. Market Value Balance Sheet Cash Fixed assets Total $120.000 476,600 $596,600 Equity Total $596,600 $596,600 LO4 The company has declared a dividend of $1.15 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? 8. Share Repurchase in the previous problem, suppose the company has announced it is going to repurchase $21,850 worth of stock instead of paying a dividend. What effect will this transaction have on the equity of the firm? How many shares will be outstanding? What will the price per share be after the repurchase? Ignoring tax effects, show how the share repurchase is effectively the same as a cash dividend. 9. Stock Dividends The market value balance sheet for Briggs Manufacturing is shown here. The company has declared a 20 percent stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 21,000 shares of stock outstanding. What will the ex-dividend price be? LO 3 Market Value Balance Sheet Cash $135,000 Debt Fixed assets 730,000 Equity Total $865.000 Total $215,000 650,000 $865,000 LO3 10. Stock Dividends The company with the common equity accounts shown here has declared a 10 percent stock dividend at a time when the market LO 3 6. Stock Splits and Stock Dividends Bermuda Triangle Corporation (BTC) currently has 395,000 shares of stock outstanding that sell for $83 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. BTC has a five-for-three stock split? b. BTC has a 15 percent stock dividend? c. BTC has a 42.5 percent stock dividend? d. BTC has a four-for-seven reverse stock split? e. Determine the new number of shares outstanding in parts (a) through (d). LO 1 7. Regular Dividends The balance sheet for Tempest, Inc., is shown here in market value terms. There are 19,000 shares of stock outstanding. Cash Fixed assets Total Market Value Balance Sheet $120,000 476,600 Equity $596,600 Total $596,600 $596,600 LO 4 The company has declared a dividend of $1.15 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? 8. Share Repurchase In the previous problem, suppose the company has announced it is going to repurchase $21,850 worth of stock instead of paying a dividend. What effect will this transaction have on the equity of the firm? How many shares will be outstanding? What will the price per share be after the repurchase? Ignoring tax effects, show how the share repurchase is effectively the same as a cash dividend. LO 4 8. Share Repurchase in the previous problem, suppose the company has announced it is going to repurchase $21,850 worth of stock instead of paying a dividend. What effect will this transaction have on the equity of the firm? How many shares will be outstanding? What will the price per share be after the repurchase? Ignoring tax effects, show how the share repurchase is effectively the same as a cash dividend. 7.Regular Dividends The balance sheet for Tempest, Inc., is shown here in market value terms. There are 19,000 shares of stock outstanding. 1 Market Value Balance Sheet $120,000 Cash Fixed assets 476,600 $596,600 $596,600 Equity Total $596,600 Total The company has declared a dividend of $ 1.15 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? 03 6. Stock Splits and Stock Dividends Bermuda Triangle Corporation (BTC) currently has 395,000 shares of stock outstanding that sell for $83 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. BTC has a five-for-three stock split? b. BTC has a 15 percent stock dividend? c. BTC has a 42.5 percent stock dividend? d. BTC has a four-for-seven reverse stock split? e. Determine the new number of shares outstanding in parts (a) through (d). PTER 14 Dividends and Dividend Policy 483 LO 3 5. Stock Splits For the company in Problem 4. show how the equity accounts will change if: a. The company declares a two for one stock split. How many shares are outstanding now? What is the new par value per share? b. The company declares a one-for-five reverse stock split. How many shares are outstanding now? What is the new par value per share? LO 3 6. Stock Splits and Stock Dividends Bermuda Triangle Corporation (BTC) currently has 395,000 shares of stock outstanding that sell for $83 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. BTC has a five-for three stock split? b. BTC has a 15 percent stock dividend? c. BTC has a 42.5 percent stock dividend? d. BTC has a four-for-seven reverse stock split? e. Determine the new number of shares outstanding in parts (a) through (d). L01 7. Regular Dividends The balance sheet for Tempest, Inc., is shown here in market value terms. There are 19,000 shares of stock outstanding. Market Value Balance Sheet Cash Fixed assets Total $120.000 476,600 $596,600 Equity Total $596,600 $596,600 LO4 The company has declared a dividend of $1.15 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? 8. Share Repurchase in the previous problem, suppose the company has announced it is going to repurchase $21,850 worth of stock instead of paying a dividend. What effect will this transaction have on the equity of the firm? How many shares will be outstanding? What will the price per share be after the repurchase? Ignoring tax effects, show how the share repurchase is effectively the same as a cash dividend. 9. Stock Dividends The market value balance sheet for Briggs Manufacturing is shown here. The company has declared a 20 percent stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 21,000 shares of stock outstanding. What will the ex-dividend price be? LO 3 Market Value Balance Sheet Cash $135,000 Debt Fixed assets 730,000 Equity Total $865.000 Total $215,000 650,000 $865,000 LO3 10. Stock Dividends The company with the common equity accounts shown here has declared a 10 percent stock dividend at a time when the market LO 3 6. Stock Splits and Stock Dividends Bermuda Triangle Corporation (BTC) currently has 395,000 shares of stock outstanding that sell for $83 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. BTC has a five-for-three stock split? b. BTC has a 15 percent stock dividend? c. BTC has a 42.5 percent stock dividend? d. BTC has a four-for-seven reverse stock split? e. Determine the new number of shares outstanding in parts (a) through (d). LO 1 7. Regular Dividends The balance sheet for Tempest, Inc., is shown here in market value terms. There are 19,000 shares of stock outstanding. Cash Fixed assets Total Market Value Balance Sheet $120,000 476,600 Equity $596,600 Total $596,600 $596,600 LO 4 The company has declared a dividend of $1.15 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? 8. Share Repurchase In the previous problem, suppose the company has announced it is going to repurchase $21,850 worth of stock instead of paying a dividend. What effect will this transaction have on the equity of the firm? How many shares will be outstanding? What will the price per share be after the repurchase? Ignoring tax effects, show how the share repurchase is effectively the same as a cash dividend