Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The capital structure of the corporation IS CREATIVE as of December 31,201 was: The following events occurred during the year 201 : Jam. 545,000 shares

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The capital structure of the corporation IS CREATIVE as of December 31,201 was: The following events occurred during the year 201 : Jam. 545,000 shares of common stock were issued at $10 per share. Jan. 16 The Board of Directors declared a cash dividend of $.30 cents per share, payable on February 20, to shareholders of record on February 5 of Fehrinary. Feb, 10,60,000 shares of common stock were issued at $14 per share. Feb. 1060,000 shares of common stock were issued at $14 per share. March 1 The Board of Directors dechred and issued a dividend inshares of a 30%. On that date the market value of the shares was $2.0 per dictiont April 1 A declaration of a 2.1 "Stock Split" was made. The par value of the Linter fell to $250 per share, On that date the value in stock market was $16 per share. Wity 1 the Poard of Pirectors declared and issued a dividend in sharefo of a afteen\%, On that date the market value of the shares was $15 per action. Aurturt 1 The Bourd of Directors declared a cash dividend of 5.30 cents per share, payable on September 20, to shareholders of record at September 5. Instructions: 1. Indicate how the events described affect the capital structure of the company. Corporation BE CREATTVE. Elerelolo 4: Estructura de eapital

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Finesse An Accounting Guide For Entrepreneurs

Authors: TaShara Ramese

1st Edition

1732510903, 978-1732510906

More Books

Students also viewed these Accounting questions

Question

Conduct an effective performance feedback session. page 360

Answered: 1 week ago